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 2024 is likely to be. And Statistics Canada released CPI for May 2023 today (June 27, 2023).
Based on CPI numbers for Ontario (leading to 5.9%, see calculation below), the Guideline for 2024 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.
We will post an update as soon as the Ministry of Municipal Affairs and Housing (MAH) publishes their official Guideline for 2023.
UPDATE: Today (June 30, 2023) the Ministry of Municipal Affairs and Housing announced that the Guideline for 2024 will be indeed 2.5%:
"TORONTO — The Ontario government is continuing to strengthen protections for tenants by holding the rent increase guideline for 2024 at 2.5 per cent, well below the average inflation rate of 5.9 per cent. The rent increase guideline is the maximum amount a landlord can increase rent during the year for most tenants without the approval of the Landlord and Tenant Board.
The guideline is based on Ontario’s Consumer Price Index, a measure of inflation calculated by Statistics Canada using data that reflects economic conditions over the past year. Under the Residential Tenancies Act, the guideline is capped at 2.5 per cent to help protect tenants from rising interest rates that would result in higher rent. Without the cap, the recent rate of inflation would have resulted in an increase of 5.9 per cent in 2024."
Dates of some past guideline announcements:
_______________________
"Guideline
(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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