Yukon’s government has set the rent cap — for the last time. 

On Feb. 5, the territorial government set the rent cap at 2.6 per cent. This meant a landlord would not be allowed to raise a tenant’s rent for 2026 beyond that percentage. 

However, the government also said this would be the last year the rent cap applies. 

Under the Residential Tenancies Regulations, a landlord can’t increase rent more than the percentage change in the consumer price index in Whitehorse over the previous two years. The consumer price index was two per cent in 2024, and 3.2 per cent in 2025, which set the 2026 rent cap at 2.6 per cent. 

The rent cap was initially brought into force in 2021, as part of an agreement made between the then-ruling Yukon Liberals and the Yukon NDP. 

The current Yukon Party government had included the promise to develop a plan that “recognizes rent control has failed” in their housing platform during the territorial election. They also promised to increase housing supply and make rent more affordable. 

Direct relationship between ending rent controls and rents increasing

Cory Bellmore, community services minister, said eliminating the rent cap will allow more people to be interested in investing in the rental market.

Bellmore said the amendment to remove the rent cap is expected to happen before May 2027, in order to give time for landlords and tenants to adjust to the change. 

Lars Hartling, Yukon Residential Landlord Association president, called the removal of a rent cap a positive move. 

He said rent caps reduce the supply of housing available, as landlords sell their rentals. He also said the housing quality declines as landlords are prevented from improving their property, due to limited income. There’s also a lack of overall investment into bigger buildings, he said. 

“Developers are much less likely to invest into any industry that has price controls,” Hartling said. 

However, history shows lifting rent controls doesn’t always boost supply, said Carolyn Whitzman, a senior housing policy researcher at the University of Toronto’s school of cities. 

Ontario had strict rent controls in the 1970s, but also high rental construction, she said. 

When Doug Ford was elected in 2018, he relaxed rent controls but rental construction didn’t “leap upwards,” Whitzman said. 

She said there’s a direct relationship between ending rent controls and rents increasing. 

Landlords will increase rents in the absence of any legislation, she said.

“It can be as simple as, end renter protections … increased evictions, increased homelessness, increased people who are, you know, making the unfortunate choice between paying their rent and feeding their kids.” 

Low vacancy rates top of mind for many Yukoners

The most recent release rent survey from the Yukon Bureau of Statistics showed average rents for all units in Whitehorse was $1,711 in April 2025. The vacancy rate was 1.3 per cent. 

Rental availability has remained low in Yukon since October 2021 with the vacancy rate hovering below two per cent. 

The Yukon Bureau of Statistics shows the rental availability is between 1.5 per cent and 0.8 per cent.

Low vacancy rates are top of mind for many Yukoners. 

Brian Hookey said it’s hard to find a place to live in the Yukon. 

Hookey said he was concerned about being renovicted with a rent cap in place. “I’d be happier to pay extra if it means I get to keep my spot.”

James Forster also said rent is high in the Yukon. 

“Now it’s just going to make things higher, especially with the lack of availability too,” Forster said. “Prices will probably go up, along with the cost of everything else.”