A new report from the Canada Mortgage and Housing Corporation finds advertised rental prices have gone down in the Halifax area, but prices for older buildings are quickly closing the gap with newer builds.
“Rental supply has been rising, shown by rapid growth in the number of listings and newly completed structures,” reads CMHC’s mid-year rental market update.
The report shows that in Halifax, asking rents for purpose-built two bedroom apartments are down 4.2 per cent from the first quarter of 2024 to the first quarter of 2025. For two bedroom condominium units, asking rents are down 8.3 per cent.
However, Halifax has seen the highest year-over-year increase in rents paid in occupied two bedroom units, with prices up 17 per cent.
“In markets with low turnover and strict rent regulations, rents often rise sharply when units become available,” the report says. “Landlords adjust rents to match current market rates, which are typically much higher than the regulated rents of the previous leases.”
And while the vacancy rate is rising as new builds reach completion, the report finds prices for units in older buildings are quickly catching up.
“Higher turnover rents in several major rental markets have decreased tenant mobility, leading to longer average tenancy periods and resulting in more substantial rent increases when tenants do move,” according to the report.
CMHC also suggests it expects vacancy rates to continue to rise amid slower population growth.