Nova Scotia Surpasses British Columbia as Canada’s Most Expensive Province for Rents
For the fourth consecutive month, Nova Scotia has held the title of the Canadian province with the highest average asking rents for apartments and condos. In August, the provincial average reached $2,356, marking a 3.1% year-over-year increase even as the national average dropped by 4.8%. Experts point to fixed-term lease structures, high construction costs, and significant institutional ownership in Halifax as key drivers of this trend.
In May, Nova Scotia overtook British Columbia to become the province with the highest average asking rents for apartments and condominiums. By August, the province had maintained this position for four straight months, with an average asking rent of $2,356. This figure represents a 3.1% increase compared to the previous year, contrasting sharply with a 4.8% drop in the national average.
The disparity is evident in specific listings. A one-bedroom apartment on Tower Road in Halifax is listed for $1,750 per month, which is considered affordable relative to other options that hover around $2,000 or higher. For context, in September 2021, the average listing price for a single bedroom in Halifax was $1,574, while a two-bedroom unit averaged $2,041.
Several structural factors contribute to these rising costs. Nova Scotia’s system of fixed-term leases does not grant tenants the right to renew, allowing landlords to bypass the five percent annual rent cap when turning over units to new tenants. Consequently, landlords have financial incentives to rotate tenants rather than retain them under capped rates.
Market concentration also plays a significant role. A report by Dalhousie Legal Aid titled "Who Owns Halifax" found that just 20 landlords own 56% of rental units across approximately 1,400 large properties in the Halifax area. Financial firms control nearly a quarter of these analyzed units. Furthermore, Statistics Canada research indicates that Nova Scotia is the only province among six studied where institutional investors owned the largest share of investment properties, accounting for 38% of assessed value.
Supply-side challenges further exacerbate the situation. Rental construction in Halifax takes about 70% longer than the national average due to rising land, permitting, and labour costs. Kevin Russell of Rental Housing Providers Nova Scotia noted that oil prices are up 40% this year, contributing to expensive winter operating costs for landlords.
While Nova Scotia’s five percent rent increase cap is set to expire at the end of 2027, current dynamics suggest that new renters face higher entry prices to subsidize long-term tenants who remain under capped rents. The combination of limited supply, high operational costs, and lease structures that favor turnover continues to drive the province's rental market to record highs.