In one of our previous posts, we shared a step-by-step process that allows anyone to check the accuracy of the guideline for rent increases using data published by Statistics Canada, and we provided some examples.
We have had some questions on what the Guideline for 2023 is likely to be.
One necessary data point (CPI for May 2022) is not available yet, so the Guideline for 2023 cannot be calculated yet, but this is how the Guideline is currently shaping up based on Statistics Canada data without May 2022.
We will post an update as soon as Statistics Canada publish May 2022 CPI data and then again as soon as the Ministry of Municipal Affairs and Housing (MAH) publishes their official Guideline for 2023. MAH typically publishes the Guideline sometime during the second or third week of June. Even without May 2022 data, this year's Guideline is very likely to be capped at 2.5% (which is the statutory cap when the CPI-based result would surpass it, see RTA subsection 120(2)), unless the law changes.
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(2) The Minister shall determine the guideline in effect for each calendar year as follows:
1. Subject to the limitation set out in paragraph 2, the guideline for a calendar year is the percentage change from year to year in the Consumer Price Index for Ontario for prices of goods and services as reported monthly by Statistics Canada, averaged over the 12-month period that ends at the end of May of the previous calendar year, rounded to the first decimal point.
2. The guideline for a calendar year shall be not more than 2.5 per cent. 2012, c. 6, s. 1."
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Dates of some past guideline announcements:
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