A sharp increase in rents is expected this year. The Administrative Housing Tribunal (TAL) will unveil its grid on Tuesday for calculating the indexation of rents in 2025. And everything indicates that tenants will be faced with steep increases.
In 2024, the TAL — formerly the Régie du logement — set the suggested average rate of increase for unheated housing at 4%. This was “an unprecedented leap in 30 years for buildings over 5 years old,” noted Desjardins economists in a study published this fall.
The year 2025 should once again break this record, according to them. They point out that the TAL bases “part of its calculation” on the “rent” component of the consumer price index. However, this component recorded an annual increase of 9% last September.
The Corporation of Real Estate Owners of Quebec (CORPIQ) also expects rents to increase rapidly this year. The organization calculates that the average increase for unheated housing without tax or insurance increases and without major work could reach 5.8%, according to information obtained by The Press and relayed in different media.
So, for a rent of $1,000 per month, this would represent an increase of almost $60 per month, or approximately $700 per year.
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The TAL index should, however, be taken with a grain of salt, insist both owners and tenants. It does not take into account municipal and school tax increases, which vary according to place of residence. Work costs incurred by the owner can also increase the bill.
-It may therefore very well be that a tenant receives an increase greater than that suggested by the TAL. Conversely, it can also be located below. The TAL calculation grid makes it possible to determine the real increase for each dwelling.
Data from the Canada Mortgage and Housing Corporation (CMHC) shows that rent increases often go beyond that. For example, according to its most recent report on the rental market, between October 2023 and 2024, the average rent for a two-bedroom apartment in Sherbrooke increased by 8.8%. In descending order, followed by rent increases in Saguenay (8.6%), Montreal (6.3%), Trois-Rivières (5.7%) and Quebec (5.2%). The lowest increase observed was in Gatineau (2.5%).
Further details will follow.
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