Nova Scotia's rental market is shaped by several economic factors. Here's what you need to know:
- Average Rent: As of February 2025, the average monthly rent is $1,721, ranging from $911 in Wolfville to $2,021 in Bedford.
- Tourism Impact: Seasonal rentals dominate during peak months (July–August), with short-term rental rates averaging $123 per night across the province.
- Student Housing Crisis: Universities and colleges drive demand, with campus housing vacancy rates at just 0.6%. Nearby rents have surged, with two-bedroom units averaging $2,300.
- Job Market Growth: Halifax added 11,000 jobs in 2023, boosting demand for urban rentals, particularly in IT and healthcare sectors.
- Population Growth: Immigration and interprovincial migration have tightened the rental market, especially in Halifax, where vacancy rates rose to 2.1% in 2024.
- Regulatory Changes: Rent caps are extended until 2027, limiting annual increases to 5%, and new short-term rental rules aim to balance tourism and long-term housing needs.
Quick Comparison of Key Metrics
| Category | Details |
|---|---|
| Average Rent | $1,721/month (province-wide); $2,021 in Bedford; $911 in Wolfville |
| Tourism Rentals | $123/night (avg.); 52% occupancy; Halifax: $149.20/night, 59% occupancy |
| Student Housing | 0.6% campus vacancy; 18% rent increase (2023–2024); $2,300 for 2-bedroom |
| Job Growth | Halifax added 11,000 jobs in 2023; IT sector growing 7.3% annually |
| Population Growth | 430,000 new residents in Canada Q3 2023; Halifax vacancy rate 2.1% (2024) |
| Regulations | Rent cap: 5% annual increase; short-term rental registration required |
Nova Scotia's rental market is evolving, driven by tourism, student housing shortages, job growth, population changes, and new housing laws. For renters, landlords, and investors, understanding these dynamics is essential.
Nova Scotia Rental Market Analysis: Killam REIT's 2024 Insights
1. Tourism and Seasonal Rentals
Tourism plays a major role in shaping rental trends, especially during the busy summer months of July and August. Across Nova Scotia, there are 7,000 registered short-term rental units, with 2,160 located in Halifax alone [2]. This influx of tourists significantly impacts both the supply of rental properties and their pricing.
Short-term rentals in Nova Scotia average $123 per night with a 52% occupancy rate. In Halifax, the numbers are higher, with nightly rates averaging $149.20 and a 59% occupancy rate. Annual revenue per unit in Halifax has also seen a 3% rise, reaching $13,300 [3][5].
"We know that this will cause some short‐term rentals to return to long‐term rentals. Precisely how many is the subject of internal debate. We really don't know", said John Lohr, Nova Scotia's housing minister [2].
Seasonal Rental Patterns
Rental demand and pricing follow clear seasonal patterns:
| Season | Months | Market Characteristics |
|---|---|---|
| Peak | July–August | High demand, premium pricing |
| Shoulder | May–June, Sept–Oct | Moderate demand, competitive pricing |
| Low | November–April | Lower demand, reduced pricing |
Registration Fees
Fees for short-term rental registration vary by location:
- Halifax area: $2,000 annually
- Outside Halifax: $500 per unit (non-primary residence)
- Select municipalities: $240 per unit annually [2]
Tourism’s Impact on Supply
In Halifax, the number of traditional hospitality properties dropped by 20% between 2011 and 2016 [4]. This decline created opportunities for short-term rental properties, especially during peak tourist seasons when hotels often operate at full capacity.
Experts suggest that adjustments in the rental market are necessary to meet seasonal demands.
"Group ATN Consulting calls for more short‐term rental properties to address seasonal gaps and varied lodging needs" [4].
The market also leans toward specific property types. In the Halifax Regional Municipality, 80% of short-term rental listings are entire homes, and 57% are one-bedroom units [5]. These preferences highlight the importance of tailoring rental options to meet visitor expectations.
2. University and College Housing Demand
Halifax's rental market feels the weight of Nova Scotia's seven universities and colleges, which collectively host over 39,700 full-time students as of October 2023 [6]. While tourism influences some rental trends, the student housing shortage keeps the market under constant strain.
Student Housing Crisis
The numbers paint a tough picture: campus housing vacancy rates have dropped to a staggering 0.6%. Meanwhile, 9% of students face homelessness, 17% live in overcrowded spaces, and rents have jumped 18% between July 2023 and July 2024 [6][9].
"If you don't have a rental near a campus in a low‐vacancy area that also has no additional dorm residence rooms available - there really aren't many options other than 'couch surf or don't come,'" explains Mitchell Archibald, executive director of Student Housing NS [6].
These challenges are driving up rental prices near universities.
Rental Rates Near Universities
Median monthly rental rates in Halifax (as of March 2023):
| Unit Type | Monthly Rent |
|---|---|
| Bachelor | $1,640 |
| One Bedroom | $1,770 |
| Two Bedrooms | $2,300 |
Student Housing Preferences
Students prioritize convenience, amenities, and proximity. Properties close to universities, grocery stores, and major bus routes are in high demand, with walking distance to campus being a critical factor. Many students now prefer fully furnished units that include utilities, high-speed internet, and added features like security, social spaces, and study areas [7][8].
"We love being able to walk to the bars, the boardwalk, and Point Pleasant Park. Our unit is great for entertaining friends because of the open concept kitchen and living room", says a tenant from GradPads [7].
Landlords are under growing pressure to meet these expectations, adapting quickly to remain competitive.
Financial Impact
The housing crisis is taking a toll on students' lives. Nearly half of Nova Scotia's students have had to cut back on groceries just to pay rent [10]. This comes at a time when tuition costs have risen 20% over six years, now averaging $9,328 annually for domestic undergraduates [10].
Kirin Property Management has stepped in to assist property owners in navigating this challenging market. Their tech-focused services - like customized tenant screening and maintenance - help landlords set competitive rents while balancing the needs of student tenants.
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3. Job Market Changes
Nova Scotia's evolving job market is shaping rental demand, with Halifax adding over 11,000 jobs in 2023 and achieving a 4.4% growth rate [13].
Industry Growth Patterns
The technology sector is driving much of Nova Scotia's growth. Information systems specialists are expected to see a 7.3% annual growth rate through 2026 [12]. In Halifax, the information, culture, and recreation sector alone added 3,900 new jobs in 2023, marking a 39% increase [13].
These employment trends are closely tied to shifts in the rental market:
| Industry Sector | Employment Impact | Rental Market Effect |
|---|---|---|
| Information Technology | 2.7% annual growth | Increased demand for high-end urban rentals |
| Healthcare | Steady growth | Rising need for mid-range housing |
| Construction | -13% (2,700 jobs lost) | Impacts housing supply |
| Professional Services | Steady growth | Higher demand for premium rentals |
Regional Impact on Rentals
Halifax's strong job market has pushed rental prices upward. The average monthly rent increased from $936 in 2014 to $1,538 in 2023 [14]. Meanwhile, the city's vacancy rate improved slightly, moving from 1.0% in 2023 to 2.1% in 2024 [14].
Employment Distribution
Nova Scotia's job opportunities are distributed unevenly across the province:
- Urban Centers: Halifax leads in high-growth industries like IT and education.
- Rural Areas: Sectors like healthcare and transportation dominate.
- Overall Growth: The province anticipates 62,250 job openings between 2024 and 2026 [12].
These regional patterns are creating new drivers of rental demand, particularly as work habits evolve.
Remote Work Influence
Remote work is playing a bigger role in shaping rental preferences. About one-third of businesses expect to maintain regular remote work arrangements in 2024 [13]. This has led to increased demand for flexible housing options with modern amenities.
Nova Scotia's unemployment rate stands at 6.8% [11], with Retail Trade, Healthcare and Social Assistance, and Manufacturing remaining key employment sectors [11]. These trends highlight the broader economic forces influencing the province's rental market.
4. Demographics and Moving Patterns
Nova Scotia's rental market is under strain due to rapid population growth and shifting migration trends.
Immigration Impact
Demographic changes, alongside employment trends, have reshaped rental demand in the region. Canada’s population grew by over 430,000 in the third quarter of 2023 - the fastest pace since 1957 [15][16]. This growth has significantly impacted Nova Scotia, particularly Halifax. The number of non-permanent residents in Canada nearly doubled from 1.3 million in late 2021 to about 2.5 million by the end of 2023 [15].
International students play a big role in this demand surge:
| Year | International Students in Canada | Impact on Rental Market |
|---|---|---|
| 2011 | 240,000 | Moderate demand |
| 2023 | ~900,000 | Heavy pressure on affordable units |
| 2024 | Continued growth | Heightened competition for rentals |
Interprovincial Migration Trends
Halifax is also seeing an influx of residents from other provinces, further tightening its rental market. The city's vacancy rate highlights this shift:
- 2022: 1.0% - one of the lowest in Canada [17]
- 2024: 2.1% - the first time in four years it rose above 1% [1]
Rental prices have kept pace with these trends. The average cost of a two-bedroom apartment in Halifax jumped from $1,335 in early 2022 to $1,707 in 2024 - a 27.9% increase over just two years [17][1]. These shifts are making housing availability an even bigger challenge.
Adjusting to the Market
Property managers and landlords are adapting to these pressures. Some high-end apartment buildings are now offering incentives as demand in certain segments softens [1].
"Eventually, the combination of decreasing demand and increasing supply will ease the pressure on the market", says Lukas Jasmin-Tucci, a CMHC economist [1].
"The reality is students are choosing other provinces to study in when they know the cost of housing is going to impact their ability to obtain their degree", explains G. Saleski, executive director of Students Nova Scotia [10].
5. Housing Laws and Rules
Nova Scotia has introduced changes to its rental regulations, which are shaping market conditions and influencing investment strategies. These updates focus on rent control, eviction procedures, and landlord obligations.
Rent Cap Extension
The province has extended the rent cap until December 31, 2027. Starting January 1, 2026, annual rent increases will be limited to 5% for most rental properties [21]. Landlords must provide a four-month notice for rent increases on standard rentals and mobile homes (with mobile home increases capped at 5.8% for 2025). For weekly rentals, an eight-week notice is required.
Updated Eviction Rules
Eviction processes now align with those in other Canadian provinces. Landlords can begin eviction proceedings after three full days of unpaid rent. Tenants then have 10 calendar days to either pay the overdue amount or dispute the eviction notice [21].
Landlord Obligations
Landlords are required to provide tenants with accurate and complete contact information, including email addresses when available. They must also inform tenants of any changes to community rules. Additionally, landlords are prohibited from charging different rates for varying rental terms and must give at least 24 hours’ notice before entering a unit, except in emergencies [18].
Housing Market Challenges
Provincial assessments predict a housing shortfall of 41,200 units by 2027/28 [20]. To address this, the government has introduced the "Our Homes, Action for Housing" plan. This strategy aims to increase the housing supply, support affordable housing programs, and roll out targeted assistance measures [19].
Short-Term Rental Rules
The Short-Term Rentals Registration Act introduces new requirements for property use. Registration fees are as follows:
- Primary Residence (up to 4 bedrooms): C$50
- Primary Residence (5+ bedrooms): C$150
- Commercial Tier 1: C$2,000
- Commercial Tier 2: C$500
- Commercial Tier 3: C$240
Violations can result in fines ranging from C$1,000 to C$100,000 [20]. These regulations aim to increase the availability of long-term rentals while balancing the needs of the tourism industry.
Conclusion
Nova Scotia's rental market is undergoing a noticeable shift, driven by economic changes. Recent data highlights this transition, with Halifax's vacancy rate climbing to 2.1% in 2024 - the first time it has surpassed 1% in four years [14]. While this offers some relief for renters, challenges remain across the province.
The economic factors at play have created varied market conditions. Average rents have risen sharply, with Halifax seeing a 13.5% year-over-year increase, reaching $1,538 per month in 2023 [22]. Regional differences are clear, with Bedford/Sackville experiencing the highest growth at 21.6% [22].
RBC economist Rachel Battaglia describes the situation as:
"We're at a little bit of a turning point." [23]
Supply and Demand Shifts
Halifax has seen a surge in housing starts, with 4,657 new units in 2023 - up 37.5% from the previous year. However, the number of completed units has slightly declined, with 2,954 finished in 2023 compared to 3,061 in 2022 [22].
Signs of a Cooling Market
Experts anticipate a slowdown by 2025 as more supply becomes available. TD economist Rishi Sondhi notes:
"Interest rates are also likely to push lower in 2025, helping renters make the transition to home ownership...What's more, falling interest rates should lower costs for landlords, reducing the pressure to pass through these costs to rents." [23]
Regional rent variations further illustrate the market's complexity:
| City | Average Monthly Rent | Average Square Footage |
|---|---|---|
| Halifax | $1,749 | 591 sq ft |
| Bedford | $2,021 | 725 sq ft |
| Wolfville | $911 | 596 sq ft |
| Dartmouth | $1,611 | 648 sq ft |
Rising construction costs, which increased by 8.3% between 2022 and 2023 [22], underscore the importance of strategic planning. Collaborating with firms like Kirin Property Management can help manage pricing and streamline operations effectively.
Looking ahead, the market appears to be stabilizing. CMHC deputy chief economist Tania Bourassa-Ochoa adds:
"It's definitely a little bit of a breath of fresh air. That said, the rental markets across Canada are still very, very tight." [23]
As trends evolve, stakeholders must focus on efficient and responsive strategies to navigate these changes effectively.
