Canada’s population grew by more than 430,000 during the third quarter in 2023, marking the fastest pace of population growth in any quarter since 1957.

Immigration supported higher rental demand, according to the rental market report from the Canada Mortgage and Housing Corporation.  The rental component of the Consumer Price Index increased by 7.7 per cent in December 2023 compared to the same period the previous year.

(The year 2002 = 100, meaning that numbers for subsequent years represent increases compared to 2002)

Although the government tries to ensure housing affordability, rents have been rising in all Canadian provinces over the past two years, unlike a 0.9 percent decline in Prince Edward Island, where a rent freeze was implemented.

Rent growth in Ontario over the last four years

The Government of Canada knows that housing is more expensive than ever. Rents in Ontario increased by 6.9 per cent in year-over-year in December 2023 despite the poverty reduction strategy. In addition, rents in Ontario have continued to rise over the past four years. Rents increased by 0.2 per cent in 2020 compared to December of the previous year, 3.5 per cent in 2021, 6.9 per cent in 2022 and 6.9 per cent in 2023.

(The year 2002 = 100, meaning that numbers for subsequent years represent increases compared to 2002)

As a solution, the federal government announced new action to make rent more affordable. According to a press release from the Department of Finance Canada, the $99-million top-up to the Canada Housing Benefit will support low-income renters.