Across Canada, rent increases are straining household budgets and forcing families to make tough financial choices. In many cities, the cost of renting has risen faster than wages, making it harder to afford basic living expenses – let alone get ahead.
In fact, according to the Canada Mortgage and Housing Corporation (CMHC), average rent growth hit a record 8% in 2023, outpacing wage increases and making rentals even less affordable – especially for lower-income Canadians. In 2024, CMHC reported that rent increases continued to slightly exceed wage growth among key renter demographics, including Canadians aged 25 to 44.
Whether you’re renting a one-bedroom apartment in Toronto or a basement suite in Vancouver, chances are you’ve felt the squeeze. And for many Canadians, these hikes aren’t just inconvenient – they’re unsustainable. In this article, we’ll break down:
- Why rent is going up
- How rent increases are affecting Canadians
- What your rights are as a tenant
- Practical steps if rent hikes are leading to debt or financial stress
Why are rent increases happening?
There are several key reasons behind rising rents in Canada:
- High demand and low supply: a lack of affordable rental units is pushing up prices, especially in major cities like Toronto, Vancouver, Calgary, and Halifax.
- Inflation and interest rates: rising property costs, mortgage rates, and utility bills are causing landlords to pass expenses onto tenants.
- Population growth: increased immigration and internal migration are adding to rental market pressure.
- Lack of rent control in some provinces: provinces like Alberta don’t limit rent increases, while others (like Ontario) have exemptions for newer buildings.
The impact of rent increases on Canadian households
The financial toll of rent increases can be severe – especially for low- to middle-income households. Many Canadians are:
- Using credit cards or loans to pay rent
- Skipping groceries, prescriptions, or transportation to stay housed
- Falling behind on bills, leading to late fees or utility shut-offs
- Struggling with mental health due to financial stress
According to a 2024 Statistics Canada report, nearly 4 in 10 renters are spending more than 30% of their income on rent – the threshold for being considered “housing cost burdened.”
Real story – Samantha from British Columbia
“I was already budgeting carefully, but when my rent went up by $250 a month, I had no wiggle room left. I started missing credit card payments and felt ashamed. That’s when I reached out to Spergel.“
— Samantha, Spergel client
Take a look at our Success Stories to see how we’ve helped Canadians like you with their debt.
How much can landlords increase rent in Canada?
Each province has its own rules on how much a landlord can raise rent. Here’s a quick overview (as of 2025):
| Province | Rent increase guideline (2025) | Notes |
|---|---|---|
| Ontario | 2.5% | Applies to most units built before Nov 2018 |
| British Columbia | 3.5% | Must give 3 months’ notice |
| Alberta | No limit | Must wait 12 months between increases |
| Quebec | No fixed guideline | Tenants can contest increases |
| Nova Scotia | 5% cap (until Dec 2025) | For existing tenants |
Always check your province’s rental board for the latest regulations.
What is the 30% rule for rent in Canada?
The 30% rule is a widely used guideline that suggests Canadians should spend no more than 30% of their gross monthly income on housing costs, including rent and utilities. If you’re spending more than that, you’re considered “housing cost burdened” – a term used by governments, lenders, and housing experts to flag affordability concerns.
While the 30% rule isn’t a hard legal limit, it’s a useful benchmark for financial health. Spending significantly more than 30% on rent can leave little room for other essentials like food, transportation, savings, or debt repayment – which is why rising rents are such a serious issue for so many households.
What to do if a rent increase is causing financial strain
If your rent has gone up and you’re struggling to keep up, here are some steps to consider:
1. Review your lease and rights
Understand whether the increase is legal under your province’s laws. You may be able to dispute the increase.
2. Negotiate with your landlord
Some landlords are open to discussion, especially if you’ve been a reliable tenant.
3. Create a revised budget
Update your monthly budget to reflect the new rent amount. Look for areas where you can cut costs or adjust spending temporarily. You might find our FREE Budget Template helpful for keeping on track.
4. Avoid relying on high-interest debt
Using credit cards to cover rent can quickly spiral into unmanageable debt due to high interest rates.
5. Talk to a Licensed Insolvency Trustee
If you’re missing rent payments or falling behind on other bills, you may need expert help. A Licensed Insolvency Trustee can walk you through your debt relief options – including consumer proposals, debt consolidation, or bankruptcy, depending on your situation. They are federally regulated, and are the only professionals in Canada legally able to file all forms of debt relief, and so are well placed to help you with your money troubles.
You’re not alone – and there are solutions
At Spergel, we understand the pressure rent increases can place on your financial wellbeing. Every day, we help Canadians like you get out of debt and take back control of their finances. Our team has been serving Canadians for over 35 years. We’ll listen without judgment and provide honest advice that fits your needs.
Ready to talk? Book a free, no-obligation consultation with one of our Licensed Insolvency Trustees today.
