Quebec Tenants Brace for Significant Rent Hikes in 2025, Experts Warn

Quebec tenants are being warned of steep rent increases in 2025, according to a recent report by Desjardins economists. The prediction highlights a sharp contrast with the rest of Canada, where rent inflation is expected to slow down. Factors such as ineffective rent control policies in Quebec and rising market pressures are major contributors to this troubling forecast.

Rent Inflation is Expected to Be High in Quebec Next Year, While It’s Likely to Slow Elsewhere in Canada

The Desjardins report indicates that rent inflation in Quebec is projected to rise significantly. Unlike the rest of Canada, where rent hikes are anticipated to moderate, Quebec’s situation remains precarious due to rising demand and insufficient regulatory measures. Currently, landlords are able to raise rents considerably between tenants, leading to worries among advocacy groups that actual rent increases will exceed the official forecasts.

Current Challenges Faced by Tenants

The financial burden of rising rents is compounded by reports from FRAPRU, a housing advocacy group, which indicates that many tenants are already struggling to find affordable housing in cities like Montreal. The average rental prices have surged, and in the third quarter of 2024, the consumer price index (CPI) reported an astonishing 8.3% rise in rental costs. Given this, many families and individuals are left in a challenging position, trying to balance budgets as more of their income goes to housing.

New Guidelines and Recommendations from Housing Authorities

Heating Type	Average Rent Increase
Electric or Unheated Homes	4%
Gas Heating	3.3%
Oil Heating	1.6%

This year, Quebec’s housing tribunal set forth new rent increase guidelines, suggesting landlords can hike rents by an average of four percent for homes without gas heating. For homes that rely on gas, the allowance was somewhat less at 3.3%. While these increases may seem moderate, they have drawn criticism from tenant rights activists claiming such hikes are far from affordable.

Opposing Views: Landlords vs. Tenants

The ongoing debate between landlords and tenant rights advocates showcases a spectrum of perspectives on rent inflation. Tenant groups argue that these increases are unaffordable and detrimental to their mental wellbeing. In contrast, landlord representatives claim that the allowed rental hikes do not adequately address rising maintenance and operational costs, including increased interest rates. This evolving debate continues to bring both sides into heated discussions over the fairness and necessity of rent increases.

Tenant Advocacy and Resources Available

In the wake of these challenging conditions, tenant advocacy groups are stepping up to provide resources and support. Workshops are being organized to help tenants understand their rights and navigate the complexities of rental agreements. Organizations like the West Island Tenant’s Action Committee are at the forefront, striving to empower tenants with information. Tenants also have the option to refuse rent increases, although landlords are permitted to challenge their decisions through the housing tribunal.

Future Outlook: What Lies Ahead for Renters

Looking ahead, the situation for renters in Quebec seems to be fraught with uncertainty. The increasing number of lawsuits filed by major rental companies, such as CAPREIT, indicates that the legal landscape surrounding housing is becoming just as contentious as the financial one. With over 1,800 lawsuits filed against tenants, advocates express concern that such actions may be discouraging tenants from exercising their rights. As the situation unfolds, many will be watching closely to see how these dynamics evolve and what protections might be put in place to safeguard tenants from significant rent hikes.