New Brunswick sticks to 3% rent cap, cites affordability issues

There will not be a significant jump in New Brunswick rents.

New Brunswick is maintaining its rent cap at three per cent for the 2027 calendar year.

The provincial government says the decision is in response to “ongoing affordability issues.”

The rent cap has been in effect since February 2025, aimed at limiting spikes in rent costs and reducing the number of tenants displaced.

It limits rental increases to a maximum of three per cent year-over-year and is subject to an annual review. The next rent cap review is set for May 2027.

“Following years of massive rental hikes, the rent cap has been a welcome stabilizing force for tenants in the rental market across the province,” says David Hickey, the minister responsible for the New Brunswick Housing Corporation in a news release on Wednesday.

“We’re keeping the rent cap in place for the 2027 calendar year to maintain that stability that tenants need, and to give us more time to improve market conditions here in New Brunswick,” he adds.

According to Apartments.com, the average rent for a one-bedroom in the province is $1,277 per month as of this month.

Three New Brunswick cities recently emerged on Royal LePage’s list of the 15 most affordable Canadian cities. Saint John, Fredericton and Moncton made the list at second, ninth, and 14th place, respectively.

Hickey credits the provincial government, saying the decision to maintain the rent cap follows other supports they’ve introduced for tenants, landlords and developers.

He points to the removal of HST on multi-unit development projects and the ongoing review of the Residential Tenancies Act expected to be completed in the fall.

Nichola Taylor, chair of New Brunswick ACORN, says it would’ve been surprising had the rent cap not been extended, or if the cap had been raised, noting no large improvement on affordability. Taylor says she wants the Residential Tenancies Act’s review to consider a ban on fixed-term leases and no-fault evictions.

“We’re hopeful that it’s going to bring some good changes, because it hasn’t been updated in over 50 years,” said Taylor. “It doesn’t reflect on the modern-day changes or challenges that tenants face today.”

With files from CTV News Atlantic’s Nick Moore

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