Nova Scotia Rents Increasing Faster than National Average, Despite Rising Vacancy Rate
According to the 2025 CMHC Rental Report, despite a higher vacancy rate, Halifax is seeing 6.7% rent increases while the national average is only 5.1%
For release, December 11, 2025
(Halifax, NS) The newly released 2025 CMHC Rental Market Report reveals that Halifax continues to face severe rental affordability challenges, with average rents rising 6.7% - outpacing both inflation and the national average of 5.1%. These increases occurred despite a higher vacancy rate, showing that new construction alone is not solving Nova Scotia’s rental crisis.
Key Takeaways from the Report:
Tenant Turnover is Driving the Affordability Crisis, with new tenants seeing 23% increases on new units, while existing tenants saw only 4% increases. This widening gap creates a powerful financial incentive for landlords to push turnover, and an equally powerful incentive for tenants to stay put – even when their housing is unsuitable or inadequate. Results which are supported by Dal Legal Aid’s 2025 Tenant Survey Report.
High Provincial Rent-Cap is Fueling Above-Average Rent Growth, while Nova Scotia has some of the lowest incomes in the country, the province’s 5% rent cap is one of the highest. The CMHC notes that landlords are increasingly applying the full allowable increase every year, an approach not seen in provinces with permanent, evidence-based rent control. As a result, non-turnover rents in Nova Scotia are also rising faster than in most other Canadian cities.
New Builds Aren’t Delivering Affordability, despite increases in vacancy rates in areas with new rental construction, the CMHC found that new rental stock is largely unaffordable. Even though the vacancy rate is now at 2.7%, it’s higher-end units sitting empty while lower-income households remain priced out. Raising questions about the provinces’ strategy of “building our way out” of the affordability crisis.
Given the data, it is clear that current provincial measures are failing to protect renters or stabilize the housing market. We’re calling on the Nova Scotia Government to take immediate action, including:
Implementing an evidence-based rent cap tied to actual market conditions, not an arbitrary 5% ceiling;
Closing the fixed-term lease loophole and restoring genuine security of tenure to prevent forced turnover of existing units;
Ensuring new construction includes deeply affordable units and non-market housing, not just high-end rentals;
Introducing policies that limit excessive turnover pressures and prevent renovictions and displacement.
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