N.S. rental options shrink as prices increase

When it comes to rental costs, Nova Scotia isn't at the top, but it's getting there.

“Halifax is 15th on our list for the most expensive cities in Canada for a one-bedroom apartment. A one-bedroom apartment asking right now is $1,938 a month which is just above a 10 per cent increase year over year,” says Giacomo Ladas, the communications manager for Rentals.ca.

Their new report says the average cost for an apartment in Canada was $2,193 per month in February, marking a 10.5 per cent jump year-over-year. The average asking price for a two-bedroom was $2,293, up 11.3 per cent annually.

“For the third year the vacancy rate in Halifax is one per cent and it’s actually been under two per cent since 2017,” Ladas says.

“I’ve been online pretty much every day looking for places, looking for rooms to rent,” says apartment hunter William George.

He is ready to share a three-bedroom and pay up to a $1,000 a month, but he's not having any success finding something in his price range.

“The last place I looked at was downtown near Scotia Square and it was $3,000 for a two-bedroom,” he said. “This poor girl was trying her best to find a roommate, but she couldn’t because it was costing way too much.

According to the Investment Property Owners Association of Nova Scotia (IPOANS), the rental market has the potential to get even tighter due to the province’s five per cent rent cap for occupied apartments. Many landlords are thinking about getting out of the market.

“They’re operating in a rent control environment with high operating expenses and many of them are looking at selling their properties just because they’re unsustainable,” says Kevin Russell, IPOANS executive director.

The type of increases in the report could be the norm for the foreseeable future according to Ladas because the rate of new builds is not keeping up with population growth.

Another factor affecting supply is the turnover rate for rentals in Halifax is at a six-year low, meaning people are staying in their apartments longer and not transitioning to home ownership.

For more Nova Scotia news visit our dedicated provincial page.