Halifax Water rate hike will drive up rents, landlords say

The proposed rate hikes by Halifax Water have sparked concerns within the housing industry, particularly among landlords who fear the impact on rental prices in an already strained housing market. The Rental Housing Providers of Nova Scotia, an association representing landlords, has filed for intervener status in the water utility’s application to the Nova Scotia Regulatory and Appeals Board.

Kevin Russell, the executive director of the Rental Housing Providers of Nova Scotia, expressed deep concern over the proposed rate changes, stating that the increased costs will ultimately be passed down to tenants in the form of higher rents. While it is unclear how many rental units include water in the rent, Russell noted that the majority of purpose-built rental buildings typically include water, while many units in family homes do not.

Halifax Water has requested a 16.2 per cent increase in the average residential bill for the 2025 fiscal year, followed by an additional 17.6 per cent increase in the 2026 fiscal year. This significant jump in water costs has raised alarm bells not only among private landlords but also among non-profit housing operators. Trish McCourt, the executive director of the Nova Scotia Non-Profit Housing Association, highlighted the challenges that non-profit housing providers face in absorbing such cost increases, especially when operating on tight budgets.

Halifax Water has justified the rate hikes by citing the urgent need to replace aging infrastructure, as well as external pressures such as inflation, increased borrowing costs, and rising labor and material expenses. The utility’s budgeted deficit for the current fiscal year is substantial, and without the proposed rate increases, the deficit is projected to grow even larger in the coming years.

In response to the concerns raised by landlords and non-profit housing operators, Halifax Water emphasized that rates are its only source of funding and that the rate increases are necessary to address financial challenges and maintain reliable water services. The utility is currently facing the need for major infrastructure projects, including a new operations center and upgrades at the Windsor Street exchange in Halifax.

The regulatory review process, scheduled for September, will provide an opportunity for all stakeholders to present their arguments and concerns before the board makes a decision on the proposed rate hikes. While Halifax Water acknowledges the concerns of landlords and non-profit housing providers, it maintains that the rate increases are essential to ensure the sustainability of water services in the municipality.