British Columbia has set the maximum allowable rent increase for 2027 at 2.2 per cent, keeping the cap tied to inflation and offering landlords early clarity for planning. The limit, slightly below the 2.3 per cent permitted in 2026, takes effect on Jan. 1, 2027.

“At a time when many people are feeling the impact of rising costs, linking rent increases to inflation helps renters, including seniors and families, meet their housing expenses, while also ensuring landlords can continue providing stable, well-maintained homes for renters for years to come,” said Christine Boyle, Minister of Housing and Municipal Affairs said. “Our focus from the start has been on helping people across B.C. find housing that fits their needs and budgets. Thanks to our work to increase housing supply, crack down on illegal short-term rentals and limit foreign investment in the housing market, B.C. has seen a 4.5 per cent decrease in overall average rents.”

Prior to 2019, landlords could apply an additional 2 per cent increase on top of inflation. Without that policy change, allowable increases would have climbed to 5.4 per cent in 2023 and 5.6 per cent in 2024.

The announcement comes as new data from Rentals.ca shows average asking rents in B.C. have declined 4.5 per cent year‑over‑year, with purpose‑built rentals and apartments down 4.1 per cent. Several cities recorded some of the largest rent decreases in the country within purpose‑built rentals, including Abbotsford, Langley, Coquitlam, New Westminster and Richmond.

The maximum allowable rent increase is determined by the 12‑month average change in B.C.’s all‑items Consumer Price Index ending in July of the previous year. The cap does not apply to commercial tenancies, rent‑geared‑to‑income units, co‑operative housing or certain assisted‑living facilities.