Halifax 'asking rents' climbed in May as other Canadian cities saw decreases from 2024

Asking rents for new apartment listings in Halifax continued to climb in May, even as cities in other provinces are seeing lower rents than they were a year ago, according to a recent report by Urbanation and rentals.ca.  

For months now, asking rents in major cities like Toronto and Vancouver have consistently been lower than they were the previous year, said Giacomo Ladas, spokesperson for rentals.ca.

But in Halifax, average asking rents in May for two-bedroom apartments rose 5.4 per cent year over year to $2,623, according to the report that's based on monthly listings from the rentals.ca network. 

Halifax is "climbing up our rental list of most expensive markets," said Ladas.

According to data from Statistics Canada, Nova Scotia was the only province as of April that had seen an overall increase in its rent inflation rate in the previous six months.

Rents in the province were up an average of 8.1 per cent in April compared to last year. In November, rent inflation was at 6.4 per cent and had generally been on a downward trend since October 2023 — when the figure was at a double-digit level. 

But one expert said there can be volatility in short-term data, and that there are encouraging signs the rental market in Halifax and elsewhere in Atlantic Canada may be reaching a "turning point" when it comes to the pace of rent increases.

"We're certainly seeing a rebalancing [of the market], let's say, where there is lower demand," said real estate consultant Neil Lovitt, adding that some apartments are becoming more difficult to lease.

He said this slowdown is mostly at the top end of the market and with newer units, which can be much more expensive than older housing. 

The top end is "where we would expect to see those changes happen first," Lovitt said. 

"Those are the ones that are first to sort of lose demand as more affordable alternatives become available, or there's less competition forcing people to have to reach to those heights."

Ladas concurred about this trend at the top end and said there's now higher vacancy with new units, particularly those located downtown.  

"That's why you're seeing some landlords offer a lot of incentives such as one month free rent," Ladas said.

While there are signs the rental market in Nova Scotia is improving, Lovitt warns that a problem that stops getting worse isn't the same as a problem solved. 

He worries about continued government motivation to do things such as grow the volume of non-market housing like co-ops and public housing — which some experts say is needed to create a more affordable housing system.

"Even if prices stop increasing entirely for a number of years … a significant portion of the population now just simply cannot afford housing at current prices."