Halifax rental market continues to have low vacancy rate, new numbers show

Latest numbers show Halifax remains one of Canada’s toughest markets for apartment rentals, featuring the lowest vacancy rate, the lowest turnover rate and high rents.

A recent mid-year report from the Canada Mortgage and Housing Corporation found that the vacancy rate in Halifax sits at 2.7 per cent, below other cities like Toronto, Montreal and Ottawa.

Kelvin Ndoro, an economist for the housing corporation, said the rate is even lower for affordable units. 

“The most expensive units, availability is much higher. But on very least expensive units, availability is lower than one per cent.”

But Ndoro notes that, as a whole, the Halifax rental market is showing some signs of improvement.

He said the asking price for apartments — meaning the price landlords advertise when they are looking for tenants — did decrease slightly from its early 2024 peak. 

Still, landlords continue to increase rents paid on occupied units nationwide, according to the report.

According to Statistics Canada, Halifax was the fourth most-expensive major city in the country when it comes to average asking rent for a two-bedroom apartment, tied with Ottawa.

Only Vancouver, Victoria and Toronto were more expensive in the first quarter of this year.

Ndoro also mentioned that turnover in Halifax is lower than ideal, and it is the lowest from the cities analyzed in the report. 

When units start to come down in price, people usually move up the chain, freeing more apartments in the middle and lower-priced units of the market. 

Ndoro said this trickle-down effect is happening more slowly in Halifax because people have little incentive to move out of their current units. 

“If people are to move, they’re most likely going to pay much higher rents,” he said.

“There’s also another aspect to that, where people’s rents are protected by a rent cap. So that also disincentivizes people from moving.”

The provincial rent cap, which is set to expire at the end of 2027, means rent can only increase up to five per cent each year, and it is tied to the tenant, not the unit. That means new tenants signing leases are not included. 

Haligonians feeling the pressure

For two years now, Patricia Colley has been trying to move out of a transitional home in Halifax and into her own apartment. 

She was homeless for four years and wants to get back on her feet, but the search for an affordable apartment has kept her from doing so. 

“There’s a really bad housing crisis in Halifax now. It’s been going on for a few years,” said Colley. “It’s really concerning to me because nothing seems to get better.”

The report shows that Haligonians are spending a significant percentage of their income on housing, comparable to that of Torontonians. 

According to data from Statistics Canada, the year-over-year change in the average asking rent for a two-bedroom apartment in Halifax from 2025 to 2026 was 5.4 per cent, whereas Toronto saw a -1.1 per cent change over the same time period.

“In Halifax, rents have been increasing at a much faster pace than they are in bigger cities like Toronto,” said Ndoro.

“So when you compare the two numbers, the affordability pressure in Halifax is growing.”

Ryan MacDonald, a master’s student at Dalhousie University, said he is currently paying $1,000 in monthly rent for a place that he shares with four other people. That is 60 per cent of his monthly income, twice as much as the recommended ratio of 30 per cent. 

“It’s ridiculous. What’s the incentive to stay here apart from family, really?” he said. 

The structural engineering student often works with newer buildings, and said he has seen many landlords trying to attract tenants with fun amenities, like social areas or gaming rooms. 

“You don’t need that. People are missing the fact that housing can just be housing, and it should be,” said MacDonald.

“There should be affordable options because not a lot of people are able to spend $1,800 a month on rent.”

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