Signs of slowing rental market in Halifax, but affordability challenges persist: CMHC report

The rental market in Halifax is experiencing a slowdown, but this is not necessarily translating to improved affordability for tenants, as highlighted in a recent mid-year update report from the Canada Mortgage and Housing Corporation (CMHC).

According to the report, advertised rents for new listings of purpose-built, two-bedroom apartments in Halifax decreased by 4.2% in the first quarter of the year compared to the same period in 2024. This decline in asking rents is attributed to a decrease in migration to Halifax, as well as changes in federal immigration policies.

CMHC economist Lukas Jasmin-Tucci noted that there are two distinct markets in Halifax – one comprising high-priced, newer buildings experiencing a slowdown in demand, and another consisting of older buildings with cheaper rents where demand remains strong.

While there has been an increase in overall housing supply in Halifax, with over 1,000 housing units completed since January, concerns have been raised about the affordability of the new housing being built. Affordable housing researcher Catherine Leviten-Reid emphasized that despite the increase in housing units, they may not be accessible to those most in need.

The report also highlighted the narrowing price difference between older and newer apartment buildings in major Canadian cities, including Halifax. This trend follows a previous analysis showing rapid rent increases for some of the city’s oldest and most affordable apartments between 2020 and 2024.

As demand for affordable housing continues to outstrip supply, the CMHC forecasts an increase in the apartment vacancy rate in Halifax, potentially reaching three per cent this year. This could lead to more tenants turning to shared living arrangements, further exacerbating affordability challenges.

Overall, the rental market in Halifax remains a challenging environment for low-income earners, with Leviten-Reid describing it as “a very difficult situation.” The CMHC’s decision to provide a mid-year rental market update reflects the need for more frequent information dissemination to keep stakeholders informed about ongoing market trends.

In conclusion, while the rental market in Halifax is showing signs of slowing down, the issue of affordability remains a significant challenge for tenants, particularly those in need of affordable housing. As the city continues to see fluctuations in demand and supply, it is crucial for policymakers and stakeholders to prioritize the creation of housing solutions that are accessible to all residents.