Lack of rent control in N.W.T. to be reassessed this year, minister says

Northwest Territories ministers have responded to criticism over recent big rent increases of hundreds of dollars for some Housing N.W.T. owned units.

Last month, rent increase notices were sent out to residents who rent market-rate units from Housing N.W.T.

Housing N.W.T. has said they wanted to better match unit rent rates with territorial averages. However since there haven't been rent increases to their market units since 2012, residents will see their rent go up anywhere from around $300 to over $700. The market-rate units in small communities are typically occupied by essential workers such as teachers and healthcare workers or community members.

Housing Minister Lucy Kuptana said increasing the rents was a "tough but necessary decision" in a statement to CBC.

She said the adjustment was crucial to maintain fairness in the housing market, and the additional revenue is needed because of declining federal support.

"No one wants to increase rental rates, but with increasing cost and decreasing operating funding, we needed to make this hard decision so that we can continue to offer housing programs. Heating costs are included, along with maintenance and repairs," the statement reads.

Justice Minister Jay Macdonald wrote in a statement that the territory has also explored implementing some form of rent control in the past, and will soon be revisiting those discussions.

"Given the issues raised by the Rental Office and other stakeholders, the Department of Justice has committed to a new, thorough review of the [Residential Tenancies] Act, in 2025," wrote MacDonald.

"The issue of rent control will be re-evaluated as part of this review, ensuring that we address current challenges and consider all perspectives."

Many of Canada's provinces and the Yukon have some form of rent increase caps, but the N.W.T. does not.

MacDonald said the government looked into rent cap measures a few years ago, during the 17th Legislative Assembly, when they did a review of the Residential Tenancy Act. But they ultimately decided against them.

"[That] decision was based on research, experiences in other jurisdictions, and the unique housing situation in the N.W.T.," wrote MacDonald.

Rent increase limits typically apply to all landlords in a jurisdiction, and would likely apply to Housing N.W.T. as well as private landlords.

Kuptana concluded her statement by saying that other supports are currently available.One of the supports she mentioned was the Canada-NWT Housing Benefit, which can provide up to $800 a month for eligible residents who pay over 30 per cent of their gross income in rent.

"This benefit is here to support people who may be affected by the recent rent change. If you think you might qualify, I encourage you to apply or reach out to the Housing N.W.T. team for more information."