Average rental rates in Nova Scotia well above national level: survey

When asked about current rental prices in Halifax Shamar Bennett was shocked.

“I couldn’t believe it,” said Bennett. “I was like ‘Wow, where do they think this money is coming from? We’re all students.”

The Dalhousie University student is originally from the Northwest Territories and says he and his roommates are each paying $1,200 for a room in their apartment.

A recent Rentals.ca and Urbanation survey shows average rental rates rose 5.9 per cent across the country compared to this time last year.

David Aizikov, senior analyst at Rentals.ca, says that represents the slowest annual rate of growth in nearly three years.

“As we move past the peak of summer, we’ve seen very little of the uplift typically expected with the warmer months,” said Aizikov. “However, as the weather cools and days become shorter, rental demand typically slows which may further slow market rent growth.”

In Halifax it’s a different story. Rents continue to climb higher than the national percentage which is following a trend over the past 24 months.

The average price for a one-bedroom apartment in Halifax is going for $2,050, which is up 10 per cent from last year at this time. The average cost of a two-bedroom apartment shot up by 18.2 per cent to $2,669.

Nova Scotia’s population has soared recently and the latest estimates suggest the population sits at around 1.07 million people.

There are signs that population growth is slowing but there is still not enough available housing on the market.

“Halifax is bringing in record new supply into the market but when the vacancy rate is at one per cent, and that’s so low, and so behind the curve,” said Giacomo Ladas, communications lead with Rentals.ca “And as interprovincial migration continues it adds more demand and so we need to see sustained supply come into the market.”

The province estimates Halifax Regional Municipality (HRM) needs to build 7,000 new housing units per year and add 38,000 more units by 2027.

Getting to that target has been a climb for HRM. The city approved 6,374 residential units for development last year. That’s getting close to the target, where this year nearly 3,500 units have been approved with another 3,200 units pending.

For more Nova Scotia news visit our dedicated provincial page.