September 9, 2025

On August 27, UDI submitted a follow up letter to the Minister of Housing expressing strong objection to the Province’s decision to limit the 2025 Annual Allowable Rent Increase to 2.3%. While UDI respects the intent of protecting renters, this policy ignores the financial realities of operating and maintaining purpose-built rental housing in BC. 

Although rents have eased over the past year and vacancy rates are rising, it remains critical that the Province pursue policies supporting new housing supply. The downward trend in rents and increasing vacancy rates are the direct result of new purpose-built rental housing supply being completed.  

Through ongoing advocacy, UDI will continue to urge the Province to reconsider and adapt a more balanced framework. There is an urgent need to look at offsets such as: 

• Reducing the property tax burden on rental buildings; 
• Creating a fairer assessment process for rental buildings; 
• Slowing the rise of utility costs through caps or rebates; 
• Offering competitive insurance rates for existing rental buildings; 
• Reinforcing a consistent approach to rental regulation through the Residential Tenancy Act; and 
• Providing support and/or tax incentives to make buildings environmentally and financially sustainable. 

August 12, 2025

On July 30, UDI submitted a letter to the Minister of Housing and Municipal Affairs asking for restoration of the Annual Allowable Rent Increase (AARI) formula to CPI +2% for 2026. 

The letter emphasizes that while rents have begun to ease over the past year and vacancy rates are increasing, it is critical that the Province continue to push for policies that support the delivery of new housing supply. The downward trend in rents and increasing vacancy rates are the direct result of new purpose-built rental housing supply being completed, which was approved a handful of years ago. This, in combination with a slowdown in population growth and heightened economic uncertainty, has driven the shifts being observed in the existing rental market.   

September 10, 2024

On August 26th, the Ministry of Housing announced that the Province would be tying the annual allowable rent increase in 2025 to inflation at 3%, down from this year’s allowable increase of 3.5%.  

UDI had submitted a letter to the Minister of Housing on May 10th reiterating the pressing need to return to a sustainable AARI rent increase formula of the Consumer Price Index (CPI) +2% for 2025. This letter was followed up by a UDI memo on June 17th, which included additional recommendations for how the Province could take steps to improve the operating environment for existing rental.  

UDI firmly believes that the Province cannot address the housing shortage in British Columbia without the private development sector – many of whom are rental housing providers. If the untenable operating environment that currently exists is permitted to continue, UDI believes that builders will be challenged to continue to own and operate existing rental housing assets or deliver on new rental housing supply in BC.  

This is why UDI continues to advocate for changes to improve the operational environment for existing rental, because creating a better operating environment for existing rental would demonstrate a more sustainable investment environment for builders considering the ownership and operation of new rental housing assets. Builders and new and existing rental operators are an essential part of the solution to achieving more affordability and availability in the rental housing market. UDI is committed to continuing to collaborate with the Province to find solutions.