The vacancy rate is expected to rise slightly to 2.5% in 2025, while rental demand will remain strong with continued affordability challenges for tenants.
Rental costs in Nova Scotia vary significantly depending on the type of unit and location. While the province's rates remain below the national average of $2,100 for all residential properties, Halifax continues to lead in rental price increases. Below, we break down the numbers by unit type, regional trends, and national comparisons.
Most affordable option
Up 10.3% from Q1 2024
Highest demand category
Family-sized units
One-bedroom units experienced a 10.3% rise compared to Q1 2024, the highest growth rate among all unit types.
Halifax continues to demand higher rents, fueled by a 4â5% population increase and a 5% hike in the rent cap. Meanwhile, other Maritime areas saw rental prices grow by 5% between December 2023 and December 2024.
Bedford/Sackville has seen the most dramatic increase at 21.6%, while Downtown Halifax remains the most expensive area overall.
Nationally, Halifax ranks as the 11th most expensive rental market in Canada. Its average rental prices are slightly below national averages:
"It baffles me, the state we're in. Nothing has changed at all, in fact, I believe things have only gotten worse." â Steve Wilsack, head of Housing First Nova Scotia
Despite these increases, Nova Scotia's rental market shows more stability than larger urban centers, with a slight 0.7% drop in overall rental prices during the latest quarter. This makes the region a more affordable choice compared to provinces like British Columbia and Ontario.
Halifax's rental market, particularly in Nova Scotia, faces a growing gap between supply and demand as technology and policy changes intersect with limited housing availability. These constraints are putting additional pressure on tenants and reshaping the market.
Halifax continues to experience a tight rental market, with its vacancy rate stuck at 1.0% since 2021. This places it among the lowest in Canada, trailing only Vancouver and Quebec City, both at 0.9%.
At 1.0%, Halifax's vacancy rate is significantly below the 3-5% range considered healthy for a balanced rental market.
To tackle the housing shortage, Nova Scotia has launched several public housing projects. Here are some of the key developments announced by the province:
| Location | Units | Expected Completion |
|---|---|---|
| Lower Sackville (Project A) | 20 | Summer 2025 |
| Lower Sackville (Project B) | 100 | Summer 2028 |
| Halifax | 30 | Summer 2028 |
| Bridgewater | 21 | Summer 2026 |
| Glace Bay | 22 | Summer 2025 |
| Kentville | 11 | Fall 2025 |
Halifax's population is growing steadily, with annual increases of 4-5%, further straining an already tight rental market. This growth has led to some striking trends:
Homelessness has nearly doubled, rising from 586 in 2022 to 1,161 as of January 8, 2025.
Entry-level rental options are scarce, often resulting in competitive, multiple-offer scenarios for affordable units.
"With would-be move-up buyers hesitant to take the leap â given the likelihood of increased carrying costs due to higher rates â there is not enough available inventory in the entry-level segment of the market for first-time buyers to get in. This has resulted in continued tight competition and multiple-offer scenarios in many cases".
Despite a national vacancy rate increase to 3.6%, Halifax remains at a tight 1.0%. Across Canada, rental unit completions have ramped up, with a 28.2% year-over-year rise in the first three quarters of 2024, totaling 63,000 units. However, Halifax's local demand still far exceeds the available supply.
The gap between supply and demand in Halifax continues to widen despite national improvements in vacancy rates.
"The increase in vacancy rates and moderation of rent growth signal a significant shift in Canada's rental market dynamics. These trends suggest some easing of the intense competition we've seen in recent years, but affordability challenges remain at the forefront. Collaborative efforts between developers and policymakers will be critical in addressing the evolving needs of renters across the country".
With changes in the market, technology has transformed property management in Nova Scotia. New tools now offer data-driven pricing, tenant management, and automation solutions. Below, we'll explore tools making an impact on pricing strategies, operations, and tenant engagement.
The LEMR Housing Monitor is a standout tool for landlords in Nova Scotia. It pulls from 18 years of data across 23 sources, including Statistics Canada and CMHC. With this platform, property managers can evaluate:
Another option is Kirin Property Management's AI-driven CMA system, which uses real-time data to adjust rental rates and maximize returns.
Property owners using AI-powered pricing tools report reducing vacancy periods by up to 80% and increasing monthly rental income by $150-$200.
A reported 84% of property managers say management software significantly boosts daily efficiency. Here's a quick comparison of some leading platforms in Nova Scotia:
| Software | Best For | Key Features | Rating |
|---|---|---|---|
| AppFolio | Large portfolios | Accounting tools, maintenance tracking | 4.6/5 (G2) |
| TenantCloud | Small landlords | Affordable pricing, basic functionalities | 4.3/5 (Capterra) |
| Rentec Direct | Residential focus | User-friendly interface, strong support | 4.7/5 (Capterra) |
Smart property tools go beyond software to improve efficiency. Rodger Desai, CEO of Prove, highlights their importance:
"Digital tools are the secret weapon for today's real estate investors - streamlining everything from tenant screening to rent collection. Whether it's AI for smarter marketing or automation for hassle-free property management, technology turns complexity into efficiency and boosts your bottom line".
Some key benefits of smart property features include:
"Smart renovations don't have to break the bank - focus on cost-effective upgrades that add value without overspending. Combine this with sustainable practices like energy-efficient appliances or solar solutions to attract tenants and cut long-term costs" - Javier Hinojosa from BKV Energy
The property management tech market is projected to grow from $24.18 billion in 2024 to $52.21 billion by 2032, with a 10.1% annual growth rate. This trend underscores the growing need for modern tools to stay competitive in Nova Scotia's rental market.
Looking ahead to 2025, Halifax's rental market is shaping up to be dynamic, driven by recent trends and advancements in property management technology. Here's what property owners should know.
Halifax's rental market is entering 2025 with strong momentum. Matt Honsberger, broker and owner of Royal LePage Atlantic, highlights the market's resilience:
"Activity in the Halifax housing market remained strong right through the middle of December, with transactions higher than they were a year prior, kicking off the first quarter of the new year with robust buyer demand. Although January is typically one of the slower months on the calendar, we are on track to see a stronger-than-normal performance given that interest rates are on the decline".
| Metric | Forecast | Change |
|---|---|---|
| Average 2-Bedroom Rent | $1,740 | Trending upward |
| Vacancy Rate | 2.5% | Slight increase from 2.1% in 2024 |
| Maximum Rent Increase | 5% | Fixed guideline |
| Mobile Home Rent Increase | 5.8% | Maximum permitted |
Despite new development initiatives, demand is expected to remain significantly higher than supply through 2025 and beyond, continuing to put upward pressure on rental rates.
Here are practical steps to streamline rental operations and maximize returns:
Adjust Rents Strategically: Follow the 5% rent increase guideline by providing four months' written notice. Tools like Kirin Property Management's AI-driven CMA system can help set competitive, data-backed rental prices.
Expand Your Portfolio: Purpose-built rentals are leading new residential projects in Halifax. If you manage more than three units, consider Kirin's Premium plan, which offers reduced management fees (10%) and discounts on maintenance services.
Keep Costs in Check: Regularly monitor key expenses such as:
For disputes over rent increases, the Director of Residential Tenancies provides resolution services for a $31.15 application fee. Also, note that removing previously included services is treated as a rent increase under Nova Scotia regulations.
Our analysis highlights key indicators that define the current state of Nova Scotia's rental market.
Nova Scotia's rental market has seen notable changes in Q1 2025. Average rent increased by 4.8% in December 2024 compared to the previous year, signaling steady growth. Halifax remains a standout area, with strong performance across major rental portfolios. These findings align with earlier trends discussed.
Three major trends shaping the market include:
| Trend | Impact | Opportunity |
|---|---|---|
| Market Rent Premium | Rents are approximately 25% higher than Killam's average rent | Potential for strategic pricing adjustments |
| Supply Growth | 68,000 new construction starts | Broader investment opportunities |
| Tech Integration | 87% of renters favor virtual tours | Improved tenant engagement through digital tools |
These trends suggest property owners should take immediate, informed actions. Minister Colton LeBlanc emphasized the progress being made:
"The proof is undeniable. The work we are doing is making it easier to build and is getting Nova Scotians into homes faster. Because of our historical investment and strong focus on housing, we've surpassed our five-year goal in the first year. Our approach is working, and we have no intention of slowing down."
Based on these insights, here are recommended actions for landlords and investors:
Success in this market hinges on leveraging technology and data to optimize pricing and enhance tenant experiences. Property owners who adopt these approaches will be best positioned to navigate Nova Scotia's evolving rental landscape in 2025.
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