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

The Rental Market in Halifax Continues to Climb in May

According to a recent report by Urbanation and rentals.ca, asking rents for new apartment listings in Halifax continued to climb in May, despite other provinces seeing lower rents than the previous year. While major cities like Toronto and Vancouver have experienced consistently lower rents, Halifax saw a 5.4 per cent increase in average asking rents for two-bedroom apartments, reaching $2,623.

Giacomo Ladas, spokesperson for rentals.ca, noted that Halifax is now moving up the list of most expensive rental markets. Nova Scotia was the only province as of April to experience an increase in its rent inflation rate over the previous six months, with rents rising by an average of 8.1 per cent compared to last year.

Real estate consultant Neil Lovitt believes that the rental market in Halifax and Atlantic Canada may be reaching a turning point in terms of rent increases. He mentioned that there is a rebalancing of the market, with lower demand leading to some apartments becoming more difficult to lease, particularly at the top end of the market with newer, more expensive units.

Ladas also observed higher vacancy rates in new units, especially those located downtown, leading landlords to offer incentives such as one month of free rent to attract tenants. While there are positive signs of improvement in the rental market, Lovitt warns that the issue of affordable housing is far from solved.

He emphasizes the need for government intervention to increase the volume of non-market housing like co-ops and public housing to create a more affordable housing system. Without such measures, a significant portion of the population may still struggle to afford housing, even if prices stabilize for a period of time.

In conclusion, while the rental market in Halifax is showing signs of change, there is still work to be done to address the affordability crisis and ensure that all residents have access to safe and affordable housing.