Debates have ignited over what to do when Nova Scotia’s rent cap policy expires at the end of 2027. So far, the government hasn’t said whether they will extend the rent cap policy, except that they are looking into all details around the rental housing market. The executive director of the Nova Scotia Rental Housing Providers argues the rent cap is a flawed policy and is stifling investment and construction of new rental units. “A rent cap is a red flag to investors,” said Kevin Russell. “It means risk and as long as that risk is there, we will have less investment in the area and we need investment, we need more supply.” Many agree more supply is needed, but in the meantime, Nova Scotia’s rent cap has been serving a purpose in helping tenants keep rent in check while still giving landlords room to make increases to afford rising costs. Nova Scotia’s five per cent rent cap has been billed as a temporary measure, but housing advocates say it’s one of the only tools available to help renters. Mark Cullligan, a legal worker with Dalhousie Legal Aid, says if property owners are going broke the province should consider a policy that allows landlords to apply for a rent increase beyond the five per cent. “I think there’s big questions to be raised about why Nova Scotia doesn’t have a system for above guideline increases, this is a system that is adopted in many other provinces,” said Culligan. Government remains adamant the solution is in building more housing and increasing the stock of rental units. “The strategy for the province is really focused on housing and housing supply,” said Gary O’Toole, the associate deputy minister with Service Nova Scotia. “So, all the activities of government are moving in that direction and certainly we are seeing success with the vacancy rate.” While the overall vacancy rate sits at 2.6 per cent, housing advocates say affordable housing still remains much too hard to find where the vacancy rate is below one per cent. For more Nova Scotia news, visit our dedicated provincial page
