Rent control paused projects, layoffs reported

A Manitoba apartment developer has paused new projects and cut about a dozen jobs after the province moved to expand rent controls. (x.com) The company’s layoffs were described in a social post that tied the cuts directly to Manitoba policy changes affecting rental revenue on new buildings. The post said the builder also froze hiring as project economics worsened. (x.com) Manitoba’s current 2026 rent increase guideline is 1.8 per cent, effective January 1, 2026, and landlords generally must give tenants three months’ written notice before any increase takes effect. The guideline applies to most apartments, houses and duplexes. (gov.mb.ca) Under the current rules, units renting for $1,670 a month or more and units in buildings first occupied after March 2005 are exempt from the annual guideline. Landlords can also apply for above-guideline increases if they show the standard increase will not cover higher costs. (gov.mb.ca) The policy fight now centers on Bill 13, which the Manitoba government introduced in the 2026 legislative session. The bill would require a review of rent-regulation rules every five years and adds new reporting and enforcement provisions for landlords. (web2.gov.mb.ca) At the same time, the government launched consultations on broader rent-control changes that would pull more older units under the cap. Canadian Press reported the proposal would raise the rent-control threshold to $2,000 from $1,670 for units in buildings 20 years or older. (thecanadianpressnews.ca) Housing advocates have pushed the government to close what they call loopholes in Manitoba’s system, including exemptions based on rent level, building age and above-guideline increases. A March 2026 policy paper from the Right to Housing Coalition said those rules let landlords bypass the province’s annual cap. (policycommons.net) Developers and landlords argue the same rules can make new rental construction harder to finance when borrowing, labour and materials remain expensive. Manitoba’s regulation page says the current rent-control framework was last amended in December 2025, and the province’s 2026 guideline uses Manitoba consumer price index data. (web2.gov.mb.ca) The backdrop is a rental market that has started to loosen, but not by much. In Winnipeg, Canada Mortgage and Housing Corporation said the purpose-built apartment vacancy rate reached 3.1 per cent in its 2025 Rental Market Report, while the average two-bedroom rent was $1,550. (cmhc-schl.gc.ca) Governments are still spending heavily to add supply. In February 2025, Ottawa announced more than $240 million in contributions and low-cost loans for 3,765 homes across 105 Manitoba housing projects. (cmhc-schl.gc.ca) For builders weighing whether to start the next apartment block, the immediate question is not demand but revenue certainty. The Manitoba rules now in force, and the wider changes still under debate, are already shaping hiring and construction decisions on the ground. (gov.mb.ca)