Halifax braces for housing crunch as submarine jobs arrive

A building is under construction in Halifax. The city is preparing for increased housing demand as Canada's new submarine program is expected to bring thousands of jobs.

HALIFAX - When Canada chose German company ThyssenKrupp Marine Systems (TKMS) to build up to 12 new submarines, it also opened the door for Halifax, with its strong naval tradition, to experience an employment boom over the next decade.

“I’ve been using the phrase tens of thousands of jobs,” said Halifax Mayor Andy Fillmore, describing the number of Halifax-based workers he expects to be involved in the submarine program.

For starters, a massive submarine facility will need to be built.

“The construction phase will require many thousands of people to build it,” said Fillmore, who pointed out that skilled workers will be required, which could attract an influx of people to the city at a time when Halifax is already experiencing a population surge which has led to a housing shortage. “It’s a problem, and we have an affordability crisis for housing in Halifax,” he said.

Mayor Fillmore said there is a strategy to build more affordable homes, and progress has been made in recent years, but the chief operating officer of Souls Harbour Rescue Mission argued the issue is not being solved fast enough.

“It is very much affecting the vulnerable population that we work with,” said Cherry Laxton, who hesitated to put a damper on what has been good news for Halifax, but said she is worried the housing issue could get even worse in the coming years.

“I would really be hopeful that the municipality, the province, and the federal government would help us to ensure that we can mitigate the giant impact that it usually has on the vulnerable population,” she said.

Those who live in Halifax, currently face some of the highest rental prices in Canada and skyrocketing property values.

“Our average price was just over $300,000, a year prior to Covid and we are just over $600,000 now for a single-family home,” said Royal LePage Atlantic President Matt Honsberger.

According to Honsberger, there were lessons learned during the COVID-19 pandemic — many Canadians moved east because it was more affordable, but when interest rates went up, so did Halifax’s cost of living.

“I think the ultimate affordability, happens monthly for people,” said Honsberger, who added that if the contract to build 12 new submarines does indeed attract thousands of workers to Halifax, they will need housing options that are not overpriced.

Mayor Fillmore agreed.

“We will have to do this work quickly,” he said.

He knows the clock is ticking. The submarines are coming, and so are a lot of jobs and people, but many fear they won’t find a place to live.