When asked about current rental prices in Halifax, Shamar Bennett was shocked.
“I couldn’t believe it,” Bennett said. “I thought, ‘Wow, where do they think this money comes from? We’re all students.'”
The Dalhousie University student, originally from the Northwest Territories, says he and his roommates each paid $1,200 for a room in their apartment.
A recent survey by Rentals.ca and Urbanation shows that average rental prices across the country have increased 5.9 percent compared to the same period last year.
According to David Aizikov, senior analyst at Rentals.ca, this is the lowest annual growth rate in nearly three years.
“After the peak of summer, we have seen little of the recovery that is normally expected in the warmer months,” Aizikov said. “However, as the weather gets cooler and the days get shorter, rental demand typically slows down, which can further slow market rent growth.”
In Halifax, things are different. Rents continue to rise faster than the national average, following a trend over the past 24 months.
The average price for a one-bedroom apartment in Halifax is $2,050, up 10 percent from last year. The average cost of a two-bedroom apartment rose 18.2 percent to $2,669.
Nova Scotia’s population has grown rapidly recently and is currently estimated 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 a record supply of new housing to the market, but the vacancy rate is at one percent, which is very low and significantly behind the trend,” says Giacomo Ladas, communications manager at Rentals.ca. “And as interprovincial migration continues, there is more demand, so we need to ensure that there is a sustainable supply coming to the market.”
The province estimates that the Halifax Regional Municipality (HRM) needs to build 7,000 new housing units annually and add another 38,000 units by 2027.
Reaching that goal has been an uphill climb for HRM. The city approved 6,374 housing units for construction last year. That puts it close to reaching its goal, with nearly 3,500 units approved this year and another 3,200 units pending.
For more news from Nova Scotia, visit our dedicated provincial page.
