Nova Scotia rent increasing faster than national average despite rising vacancy: report

The cost of renting in Halifax is rising faster than the national average despite increased vacancy.

Rent in Halifax is rising faster than the national average despite rising vacancy, says the 2025 rental market report from the Canadian Mortgage and Housing Corporation (CMHC).

The average rent increase in Halifax is 6.7 per cent, compared to inflation and the national average of 5.1 per cent, says the report.

These increases, despite a higher vacancy rate, indicate construction is not solving the province’s rental crisis, says a release from Dalhousie Legal Aid Services.

The report shows three key drivers of Nova Scotia’s higher rate of increase:

• Tenant turnover: New tenants see an average increase of 23 per cent while existing tenants only see a four per cent increase. This incentivizes landlords to push turnover and tenants to stay put when conditions are unsuitable, said the release. Dalhousie Legal Aid’s 2025 Tenant Survey supports these findings.
• High rent cap: Nova Scotia’s rent cap is one of the highest in the country at five per cent. CMHC says landlords are increasingly applying the maximum allowable increase every year so non-turnover rents are rising faster than in most Canadian cities. This is not happening in provinces with permanent, evidence-based rent control, says the release.
• New builds aren’t providing affordability: CMHC found new rental properties are largely unaffordable. Despite a vacancy rate of 2.7 per cent, high-end rentals are vacant and affordable rentals are “priced out,” said the release.

The report raises questions about the province’s strategy of “building our way out” of the affordability crisis, said the release.

The data makes it “clear that current provincial measures are failing to protect renters or stabilize the housing market,” says the release.

Dalhousie Legal Aid Services called on the province to take the following actions:

• Implement an “evidence-based rent cap” tied to market conditions instead of an “arbitrary five per cent.”
• Close the fixed-term lease loophole to restore security of tenure and prevent forced turnover.
• Ensure affordable units and non-market housing in new construction.
• Introduce policies to limit turnover pressure, renovictions and displacement.

For more Nova Scotia news, visit our dedicated provincial page