theANNUAL National 2024 - Allowable & Actual

Rents – Allowable & Actual

Allowable Guideline Increases 2024

– 3.5%

– 3.5% plus a proportional amount for the change in local government levies and regulated utility fees. Some increases above the guideline are available.

MANITOBA

Some increases above the guideline are available. Exemptions apply for units renting for more than $1,615 (as of December 31, 2023), and for buildings with an occupancy permit first issued after March 7, 2005, which are less than 20 years old.

PEI

Residential Tenancies – 3%

Manufactured Home Tenancies – 3%

ONTARIO

Residential Tenancies – 2.5%

Exemptions apply to buildings and additions first occupied after November 15, 2018. Some increases above the guideline are available for both residential tenancies and manufactured home sites.

– 5%

– 5%

In Quebec, there is no exact equivalent to the guideline as it is used in BC, Ontario, Manitoba, PEI, and now Nova Scotia. The Quebec government does not set a rent increase that a landlord can charge without any specific approval. Instead, if tenants challenge the rent increase notice that the landlord gives them, the Tribunal administratif du Logement (the Quebec Rental Board) applies a set of standard cost increases to the specifics of each rental building. The calculation is based on actual increases in municipal taxes and insurance, and inflationary percentage increases applied to other costs such as heating and services. Alberta, Saskatchewan, Newfoundland and Labrador, and New Brunswick do not limit rent increases.

Rents – Allowable & Actual

Canada’s multifamily market maintained its strong performance through the end of 2023, and more of the same is on

National & Major CMA Averages

Rents – Allowable & Actual

Conclusion

The growth rate for lease-over-lease rents— which represent new leases on units that are re-leased after becoming vacant—moderated slightly in Q4 2023 but remains extremely high. Nationally, lease-over-lease rents increased by 12.2% year-over-year in Q4 2023, 90 basis points less than the 13.1% growth rate the previous quarter. It is also the first decline since Q1 2021, possibly a sign of rents peaking due to the trickle of new supply or the impact of affordability. Leases not subject to rent control in most jurisdictions are a good measure of supply-demand metrics. For more insight into the Canadian multifamily market view the full report at Yardi.com/CNDMultifamilyReport