Vacancy rate remains the same despite record building in Halifax: CMHC

Halifax vacancy rates among lowest in country Halifax is building new residences at a record pace but vacancy rates are staying relatively the same, according to a report.

Halifax is building homes at a record rate, both single family and multi-unit dwellings.

Between July 2022 and June 2023, 2,842 units were completed.

“We are leading the country in terms of new construction per capita. We are leading the country in terms of completions per capita. We had a record number of completions in 2023, but it’s just not enough,” says Kelvin Ndoro, a senior specialist with the Canada Mortgage and Housing Corporation (CMHC).

That's according to CMHC’s annual rental market report.

Findings also show vacancy rates continue to hover around one per cent, which is among the lowest in the country. That's because building growth has coincided with record population growth.

Net migration in 2014 was -320. Last year, it was more than 33,000. That has kept the supply low and the demand and prices high.

“Our rent four ways is $700 each and that’s four people,” says Jamie Bryden.

Jamie Bryden and his roommates started searching for accommodations back in September. They signed their lease yesterday.

“We toured a bunch of places that were definitely subpar for the price, but we managed to find a really good one, but it’s kind of far away,” Bryden says. “We were really lucky and hearing what other people have to say. It’s been a nightmare for some people to find housing.”

CMHC'S study indicates rents have increased by nearly 12 per cent. On average, a two-bedroom apartment now goes for a little more than $1600. That number might be more accurate in rural parts of the region, which now includes East Hants, but not in the city’s core.

“If you’re downtown Dartmouth or downtown Halifax, you’re going to be hard pressed to find a $1600 two-bedroom unit for sure. You’re definitely starting with a (two-bedroom), at least in my mind,” says Royal LePage Atlantic President Matt Honsberger.

That affects turnover because people stay in their rental units longer, and they don’t transition to home ownership because they can't afford to buy a home.

“You’re renting longer for a couple reasons. You don’t have the affordability… but you would rent longer in a single location, as well, because you want the protection of rent control so that’s where the double-edged sword is,” Honsberger says.

In terms of the number of units built per structure, Halifax is doing well. It's right around 50, which is among the highest in the country. However, a lack of skilled tradespeople is slowing down construction as a whole.

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