Rent cap to remain at three per cent, given ongoing affordability challenges

Release

Housing New Brunswick

June 04, 2025

FREDERICTON (GNB) – The provincial government will keep its rent cap at three per cent for the 2025-26 fiscal year to help those struggling with housing-related affordability issues.

The cap, a rent control measure that was announced late last year and took effect in February, is meant to limit big spikes in rents and the displacement of tenants.

“While we have seen a recent increase in the number of rental units in New Brunswick, tenants are still encountering low vacancy rates and rising rent prices,” said David Hickey, the minister responsible for the New Brunswick Housing Corporation. “We’re keeping the rent cap in place for this fiscal year to help provide stability and to give us more time to address the issues driving these challenges in the market.”

The cap limits rental increases to a maximum of three per cent year-over-year and is subject to an annual review. The next review is scheduled for May 2026.

It will also be considered as part of the Residential Tenancies Act review, which is currently underway.

“This is the stability renters in New Brunswick need after a 40 per cent increase in rent over the past six years,” said Hickey. “This follows other supports we’ve introduced to help landlords and developers.”

The government previously introduced a rebate on the provincial portion of the harmonized sales tax for new rental builds that started on or after Nov. 15, 2024.

It has also proposed legislation to freeze property assessments for homeowners, landlords and businesses for one year as it works to reform the property tax system.

 

Related topics

Family, home and community