Nova Scotia Surpasses British Columbia as Canada’s Most Expensive Rental Market
Nova Scotia has held the title for the highest average asking rents in Canada for four consecutive months, driven by fixed-term lease structures, high construction costs, and significant institutional ownership.
In May, Nova Scotia overtook British Columbia to become the province with the highest average asking rents for apartments and condos. The province has maintained this position for four straight months, reaching an average ask of $2,356 in August. While the national average rent dropped by 4.8 per cent year-over-year, Nova Scotia’s rents rose by 3.1 per cent during the same period.
The surge in rental costs is attributed to a combination of structural and economic factors. Mark Culligan, a community legal worker at Dalhousie Legal Aid Service, points to Nova Scotia’s system of fixed-term leases and its five per cent rent increase cap as key drivers of tenant vulnerability. Unlike tenants in other provinces, those in Nova Scotia have no right to renew their lease once the end date passes. This allows landlords to increase rents beyond the five per cent cap if they choose to rent to new tenants rather than renewing existing agreements.
The five per cent cap in Nova Scotia is higher than limits set by other jurisdictions, such as British Columbia’s 2.2 per cent and Ontario’s 1.9 per cent ceilings for 2027. However, the lack of renewal rights creates a financial incentive for landlord turnover, which can bypass these caps entirely.
Market concentration also plays a significant role. A report by Dalhousie Legal Aid found that just 20 landlords own 56 per cent of large rental units in the Halifax area, with financial firms controlling nearly a quarter of those units. Statistics Canada research indicates that Nova Scotia was the only province among six studied where institutional investors owned the largest share of investment properties, accounting for 38 per cent of the assessed value in rental properties.
Supply constraints further exacerbate the situation. Kevin Russell, executive director of Rental Housing Providers Nova Scotia, noted that oil prices are up 40 per cent this year, contributing to higher operating expenses for landlords. Additionally, rental construction in Halifax takes about 70 per cent longer than the national average due to rising land, permitting, and labour costs.
For renters, the impact is visible in daily listings. A one-bedroom apartment on Tower Road in Halifax, near Dalhousie University, is listed for $1,750 a month, which is considered affordable compared to other units hovering around $2,000 or higher. Five years ago, $2,000 would have secured a two-bedroom apartment in Halifax. In September 2021, the average listing price for a single bedroom was $1,574, while a two-bedroom averaged $2,041. Nova Scotia rents have risen every year since 1990, but the pace stepped up sharply since 2019. The current rent increase cap is set to expire at the end of 2027.