Vacancy rate, rent prices continue to rise in Halifax

Many Halifax landlords are offering incentives to prospective renters in order to fill vacancies.

Halifax’s rental vacancy rate has reached approximately 3.1 per cent – a notable jump from the historically low levels seen roughly a year-and-a-half ago – but rental prices are continuing to rise.

“Nationally, asking rents are down about three-and-a-half per cent compared to this time last,’ said Giacomo Ladas, spokesperson for Rentals.ca. “But Halifax saw a three per cent increase year-over-year – and when you look at once-bedroom apartments, Halifax is actually up over seven per cent.”

According to Kevin Russell, executive director of Rental Housing Providers of Nova Scotia, leasing activity has slowed down significantly.

“It’s taking a lot longer to lease apartments,” he said. “What used to take six months is now taking eight or nine – even to get to 95 or 96 per cent occupancy in new builds.”

He said a lot of it has to do with fewer international students.

“We’ve seen a lot of international students leaving the area and that opens up more units to the market and that’s why the vacancy rate is going up,” he said.

That lag has prompted rental incentives from property managers, particularly in newer, more expensive buildings that were constructed during peak inflation.

“They’re offering one or two months free rent, free internet, or even gift cards,” said Ladas. “They’d rather give renters something than drop the asking price.”

Both Ladas and Russell say the market is struggling to meet demand for more affordable rentals. While high-end units sit longer on the market, more budget-friendly apartments remain in short supply – with vacancy rates under one per cent for rentals priced below $1,400 a month.

“There’s just no inventory in the lower rental segment,” Ladas said. “Those units don’t exist, and that’s where the demand.”

The influx of new units – roughly 1,700 are expected to hit the market in the next eight or nine months – could help ease some pressure. But both experts warn that unless governments step in to reduce construction costs and red tape, truly affordable housing may remain out of reach.

“Newer buildings were constructed with materials during the height of inflation,” said Russell. “That’s reflected in the rents and it’s not what people are looking for.”

“We still need more supply, especially affordable supply. Without it, these rental challenges will persist,” Ladas said.

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