Rent increases in New Brunswick to be capped at 3% starting Feb. 1

The government of New Brunswick has introduced a bill aimed at tightening restrictions on residential rent increases, setting a cap of three percent annually starting February 1, 2025.

Housing Minister David Hickey presented the proposed legislation on Wednesday, which is expected to pass before the legislature adjourns for the holiday season.

While rent increases greater than three percent implemented before February 1 will remain unchanged, including those spread out over multiple years under current rules, any portion of these phased increases taking effect on or after February 1 will fall under the new cap.

Landlords may request increases above the three-percent limit, up to a maximum of nine percent, but only if they can demonstrate that the additional funds are necessary for unit renovations.

The cap will be reviewed annually and adjusted based on inflation and vacancy rates. However, landlords will only be allowed to raise rent beyond the cap when a new tenant moves into the unit.

Current regulations already limit landlords to one rent increase per year, requiring six months' notice for any changes. Increases exceeding a threshold tied to inflation, currently set at 3.8 percent, may be phased in over two or three years.

Landlords must also apply for permission to terminate leases and evict tenants for renovations, commonly known as "renovictions." Government records show that 123 such applications have been submitted this year, with only nine receiving approval.

The legislation aims to strike a balance between protecting tenants and addressing housing needs, particularly in a challenging rental market.