N.S. rapidly losing some of its most affordable apartments, while cost soars for new ones

Nova Scotia is facing a troubling trend where some of the most affordable rental housing in the province is rapidly becoming less accessible for residents. According to data from the Canada Mortgage and Housing Corporation (CMHC) analyzed by CBC News, the median rent for apartments built in 1979 or earlier in Halifax has increased by more than 40% over the last four years. These older apartments, which were once among the most affordable in the city, now have a median rent of around $1,300 per month in 2024.

The CMHC data, which covers privately built rental housing with at least three units, highlights a concerning erosion of affordable rental options in Nova Scotia’s private market. This trend is not unique to the province, as researchers have observed a similar pattern across Canada. Catherine Leviten-Reid, an associate professor at Cape Breton University who specializes in affordable housing research, notes that the loss of affordable housing stock is outpacing the construction of new units.

The disparity in rental prices between older and newer apartments is stark. In 2024, half of the apartments built between 2020 and 2024 had rents of $2,150 or more per month, with the median rent for new apartments in Halifax reaching $2,200. These price points put new builds out of reach for many lower-income Nova Scotians, exacerbating the province’s housing affordability crisis.

While Premier Tim Houston has emphasized the need for new housing construction as a solution to the housing crisis, real estate consultant Neil Lovitt points out that simply building more units may not address the root issue. High demand for housing, coupled with rising construction costs, can drive up rents and incentivize landlords to redevelop properties for higher returns.

Despite the challenges, Nova Scotia’s Department of Growth and Development has made efforts to preserve and create affordable housing units. The province has invested $120 million in the last two years to support the preservation and development of 1,400 affordable units. However, experts like Lovitt stress the importance of non-market housing, such as non-profit, co-op, or public housing, in addressing long-term affordability challenges.

Countries like the Netherlands, Denmark, and Austria have successfully integrated non-market housing into their housing systems, with non-market housing accounting for more than 20% of the total housing stock. These models prioritize affordability and long-term stability, offering valuable lessons for Nova Scotia as it grapples with a dwindling supply of affordable rental options.

Ultimately, addressing Nova Scotia’s housing crisis will require sustained and significant investments in public and non-market housing sectors. While we cannot undo decades of neglect, governments can take proactive steps to ensure that affordable housing remains a priority for future generations. By learning from successful models and committing to long-term solutions, Nova Scotia can work towards a more equitable and sustainable housing landscape for all residents.