As Canadians continue to face escalating costs for essentials such as food and utilities, a recent report offers a glimmer of hope in the rental market.

Rental Market Overview

The January 2025 Rent Report from Rentals.ca and Urbanation reveals that the average asking rent for residential properties across Canada dropped by 3.2% at the end of 2024, marking a 17-month low at $2,109. This decline follows a steep 8.6% increase in 2023 and a staggering 12.1% rise in 2022, making 2024 the first year since the pandemic began that Canadians have seen an annual rent decrease.

Despite this year-over-year decline, rental prices have surged by 16.8% over the past five years, reflecting an average annual increase of 3.15%.

Regional Insights

The situation in Atlantic Canada is particularly concerning, as rents in the Maritimes climbed by 5% from December 2023 to December 2024—an increase on par with Manitoba, making it one of the highest across the country. This region is now the third most expensive area for rent in Canada, trailing only behind British Columbia and Ontario.

Halifax's Rent Dynamics

Halifax, the largest city in Atlantic Canada, stands out with average rents for one-bedroom apartments approaching the national average at $2,030. However, this city has experienced one of the highest rent increases, with a staggering 10.3% jump in just one year. Only Lethbridge, Alberta recorded a higher rise at 14.5% since December 2023.

The rental market in Halifax has been fluctuating dramatically over the last few years. For instance, the average rent for a one-bedroom apartment soared from $1,602 at the end of 2021 to nearly $2,000 by the end of 2022, before experiencing a minor decline in December 2023 to $1,841.

Demand and Vacancy Rates

Halifax’s population has surged by 4 to 5% annually since 2021, compounded by one of the country's lowest vacancy rates at just 1%. This imbalance between high demand and limited supply is adding pressure on rental prices.

The situation is exacerbated by the recent increase in Nova Scotia’s rent cap, which rose to 5% in early 2024 from 2% previously.

Impact on Homelessness

For many, rising rents have made it increasingly challenging to afford housing. The Affordable Housing Association of Nova Scotia reports a staggering rise in homelessness, with 1,161 people currently experiencing homelessness in Halifax—a significant increase from the 586 reported in 2022.

City's Response

Halifax's new mayor, Andy Fillmore, has asserted that the city's homelessness crisis is improving, promoting efforts to close encampments. However, many experts argue that available shelter space is inadequate for the growing number of individuals without homes. Currently, Nova Scotia provides just 390 shelter beds in Halifax, while also introducing an 185-unit transitional shelter and plans for additional single-occupancy shelters.

Expert Opinions

Steve Wilsack, head of Housing First Nova Scotia, expressed concern about the worsening housing situation, stating, "It baffles me, the state we’re in. Nothing has changed at all; in fact, I believe things have only gotten worse."

Conclusion

As rent prices continue to fluctuate and homelessness rises, the pressing question remains: What will be done to address the housing crisis in Halifax and across Canada?