Nova Scotia has seen a significant rise in rents despite the construction of numerous new rental units in recent years, with the inflation rate exceeding historical levels. While rent increases have slowed from their peak in October 2023, latest data reveals that Nova Scotia rents surged by an average of 8.7% in July compared to the same period last year.
According to Statistics Canada data spanning from 1998 to 2018, the province had never experienced a rent inflation rate surpassing two percent. Kelvin Ndoro, the lead economist for the Atlantic region at the Canada Mortgage and Housing Corporation, attributes this ongoing increase to the concentration of new rental developments in Halifax, causing a mismatch with the dispersed population growth across Nova Scotia.
Neil Lovitt, a real estate consultant at Turner Drake and Partners, highlights that the province’s five percent cap on annual rent increases has led to many rental units having prices below market rates, resulting in a slower adjustment of prices. Rent increases in Nova Scotia have outpaced the national average since 2018, rising by approximately 57% compared to the national average of 39%.
Despite the construction of new housing supply in recent years, it has not decreased overall prices significantly. Ndoro notes an improvement in Halifax’s rental market with better vacancy rates, potentially leading to tenants moving to new units with higher rent increases. Affordable rental options remain scarce, especially for low-income households facing substantial rent hikes compared to minimal income assistance rate increases.
Catherine Leviten-Reid, a Cape Breton University professor focusing on affordable housing, emphasizes that rent increases have put increased financial pressure on low-income households, outpacing income assistance rate adjustments. The rental market in Nova Scotia continues to pose challenges for renters seeking affordable housing options.