Nova Scotia is experiencing a rapid decline in the affordability of its oldest and most cost-effective rental units, as per an analysis by CBC News of data from Canada’s national housing agency. The data from CMHC indicates that between 2024 and 2025, the median rents for units built before 1960 up to 1999 surged by approximately 13 to 18 percent, varying based on the building’s age. Despite the stable number of units in both years, this surge surpasses Nova Scotia’s five percent rent cap, which does not apply to new tenants.
Housing Minister John White of Nova Scotia attributes the issue of rental affordability to a straightforward supply and demand imbalance. He emphasized the necessity of increased supply to drive down rents, noting the record levels of construction in the province. However, experts like Carolyn Whitzman caution that evaluating supply solely based on quantity overlooks the nuanced impact of housing targeted at lower-income groups compared to market-rate units.
Over the past five years, rents for older rentals in Nova Scotia have escalated by 42 to 58 percent. Furthermore, the latest rental units in the province are notably pricier than the older stock. For instance, in the previous year, the median rent for two-bedroom units constructed in the last five years stood at $2,350, marking a 73 percent increase compared to units built between 1980 and 1999.
Efforts to address the housing affordability crisis have seen the Nova Scotia government pave the way for the creation of over 68,000 housing units. The CMHC suggests that higher-income households opting for newer units could free up existing affordable housing for others, aligning with the “trickle-down” theory of housing. Nevertheless, experts stress the need for a focus on non-market housing like public, co-op, and non-profit units to achieve long-term affordability goals.
To preserve existing affordable housing, initiatives such as enabling non-profits to purchase buildings and investing in the creation of affordable units have been vital in Nova Scotia. The province’s commitment to investing in affordable housing aims to counter the escalating rents and ensure the availability of affordable homes for all residents.