Quebec’s Tribunal administratif du logement (TAL) has officially proposed what could be the largest rent increase seen in three decades, at 5.9% for unheated rentals starting from the renewal of leases in July 2025. This announcement, made on January 21, 2025, has sparked alarm among tenants, particularly as it follows two years of record-setting increases and exacerbates the already precarious rental situation across the province.
This projected increase means, for example, tenants currently paying $1000 per month can expect their rent to rise by $59, making not just budgeting, but even retaining their homes, increasingly difficult for many households. And if landlords claim to have made substantial improvements or witnessed increases in municipal taxes, the permitted increases could rise to about 8.5%—meaning some rents could surpass $1000 monthly, pushing affordability beyond the reach of countless families.
Jonathan Carmichael, spokesperson for the Bureau d’animation et information logement (BAIL), expressed immediate concern following TAL’s announcement, stating, "We are consternated by the magnitude of the suggested increases. For us, as for hundreds of thousands of households across Quebec, this is extremely concerning." His sentiments echo the fears of many tenants who already struggle with expenses, as anecdotal evidence shows many local residents resorting to food banks or sharing living spaces simply to make ends meet.
Many tenant advocacy groups have responded vehemently, reminding the government and TAL of the already increasing financial pressure this imposes. Amy Darwish from the Comité d'action de Parc-Extension underscored, "This is catastrophic. These are the highest indices we’ve seen since at least 37 years." This concern is pivotal as studies reveal around half of Quebecers live paycheck to paycheck, leaving little to no room for increased housing expenses.
The financial rationale behind the increases can be traced back to rising operational costs, including maintenance, insurance, and taxes. Éric Sansoucy from the Corporation des propriétaires immobiliers du Québec (CORPIQ) remarked, "These increases are necessary and reflect the overdue adjustment for the actual costs of property management." He stated recent inflation trends require these adjustments if property owners are to maintain their assets adequately.
The government's response has not satiated the call for action. During press interactions, Minister of Housing, France-Élaine Duranceau, pointed out the importance of increasing housing supply as the genuine solution to the affordability crisis. "The real solution to the affordability crisis is to increase the supply of housing," she stated firmly. This approach has faced criticism from groups advocating for tenant rights who believe immediate measures such as rent freezes are necessary before the supply issue can be addressed comprehensively.
On the legislative front, the proposals have rekindled debates on existing laws governing rent increases, with calls for reviews of TAL's formula for adjustment. Opposition party representatives, such as Virginie Dufour from the Parti libéral du Québec, argue the current calculation formula does not accurately reflect economic realities. They contend, "This method does not mirror reality and needs thorough revision to prevent spirals of increases. We must act swiftly to prevent exacerbation of tenant consent issues," she insisted.
The TAL also warns tenants of their rights under current laws: if they believe the suggested increase to be unjustified, tenants can refuse the raise and seek adjudication through the tribunal. It’s noted, though, without timely dispute, tenants may unwittingly accept the proposed increase. And rejections can lead to complex negotiations with landlords, especially when many properties may be less than five years old, where landlords often win the right to impose their proposed increases.
Facing the potential of heightened evictions and persistent affordability crises, many groups, including the Regroupement des comités logement et associations de locataires du Québec (RCLALQ), are demanding immediate intervention. They emphatically call for government-led rent freezes to alleviate the burden affecting many vulnerable households across the province.
Looking forward, it appears Quebec’s housing market is at a pivotal juncture. Continued rent increases against the backdrop of economic struggles stand to reshape the living conditions of many. The debate around adequate housing access and tenant rights is only intensifying, urging stakeholders to confront not just the symptoms but the foundational issues driving this crisis.