The Ontario government has announced a 2.1 per cent cap on residential rent increases for 2026, a move it says will help protect tenants amid ongoing economic challenges and rising costs. The guideline, which is based on the province’s Consumer Price Index as calculated by Statistics Canada, represents the lowest rent cap in four years.

“Our government knows tariffs and economic uncertainty are creating challenges for many people in Ontario, including renters, which is why we are capping rent increases for 2026 at 2.1 per cent,” said Rob Flack, Minister of Municipal Affairs and Housing. “This cap demonstrates our commitment to protecting tenants across our province as we continue searching for ways to keep costs down.”

The 2.1 per cent cap on rent increases applies to approximately 1.4 million rental households covered by Ontario’s Residential Tenancies Act, including tenants living in rented houses, apartments, basement units and condos. Exceptions include units first occupied after November 15, 2018, vacant properties, community housing, long-term care homes, and commercial rentals.

Rent increases are not automatic; landlords must provide tenants with 90 days’ written notice using the official government form. Tenants in financial hardship are encouraged to reach out to local service managers to access available housing supports.

To learn more about the rules for increasing residential rents in Ontario, including guidelines and resolving issues about rent control, visit: Residential rent increases | ontario.ca