Halifax rental vacancy rate rises to 2.1 per cent: report

The vacancy rate for rental units in Halifax has taken a positive turn upwards, according to a report released by the Canada Mortgage and Housing Cooperation (CMHC) on Tuesday.

The region’s apartment vacancy rate has increased by 2.1 per cent, which was higher in previous years, but Lukas Jasmin-Tucci, an economist with CMHC, says that means there is more supply for higher-priced units.

"There is more vacancy for higher-priced units, but the market remains very tight for most of the market where some people cannot afford to move," says Jasmin-Tucci.

The report also shows the vacancy rate for units priced below $1,300 is well under one per cent.

“Doesn’t shock us at all because the fact is there's low turnover for lower priced units. And it’s going to take some time to sort that out,” says Kevin Russell, executive director of Rental Housing Providers Nova Scotia.

The report also shows a record-high number of new construction starts in previous years.

CMHC says it has helped ease the market, but the availability of construction workers and the overwhelming number of ongoing projects in the region has slowed completion.

"What we're seeing in Halifax is that there's a widening gap between the starts and the completions,” says Jasmin-Tucci. “So, there's pressure on the construction market and it takes a little bit longer. We didn't have as many units added to the market as we would expect."

But Russell says that will likely change next year, as “there will be a lot of new units coming to market and that should have an impact."

According to the report, international and interprovincial migration into Halifax has slowed, which CMHC says has affected the market.

But despite these findings, the cooperation says it’s still not enough to improve affordability.

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