Nova Scotia’s largest city is seeing a 25 percent increase in rents compared to this time last year, according to a statewide rents report.
One-bedroom apartments in Halifax average over $2,000 per month, while two-bedroom apartments average over $2,500.
The report argues that the annual rental growth rate will continue to increase in the future due to record high population growth and low home affordability.
Kevin Russell, chief executive of the Investment Property Owners Association of Nova Scotia (IPOANS), said inflationary pressures associated with high costs are preventing developers from building new homes, which then impacts the number of rental units available.
In other areas, too, costs for landlords are rising, Russell explained.
“They have higher mortgage rates, high construction rates, higher utility costs, and property taxes are definitely higher.”
Russell claims that the rent cap doesn’t help either.
“Especially in a sales unit, tenants increase the rent when they move out and the unit becomes vacant because they have to subsidize the rental price units that are in deficit due to the rent cap. Ultimately, it hits new tenants the most.”
Ryan and Samantha Dodge returned to Nova Scotia two months ago after living in Ontario for three years.
Since their return, they have not been able to find an apartment.
“We’re looking for rentals, but there are only sublets with terms like ‘female only, no male,'” Samantha explained.
Both Ryan and Samantha stood outside the DoubleTree Hotel accommodation in Dartmouth, holding a sign that read, “Stop forcing the working class into homelessness.”
They stand in front of the new shelter after learning that people earning more than $1,200 a month are no longer eligible to live there.
Ryan said the current rental market is forcing people like him to leave a home.
“Just because someone has a little bit of money doesn’t mean they’re doing well and ready to come back into the world and have a place right away.”
Despite bringing home $1,500 a month after taxes, the Dodge family found it impossible to find a place to live.
“It looks like we’re going to run out of space this summer,” Ryan said.
Christina Henneberry lives with her son in a one-bedroom apartment in Halifax.
While she’s fortunate to have a place to call home, that also comes with its own difficulties.
“I work seven days a week and it feels like all I do is keep a roof over my head. I have a feeling you’re stuck [financially] without a partner.”
According to IPOANS, there are only a small number of rental providers in the province, many of whom have already gone out of business.
The organizations assume that the availability of housing will continue to decrease.
They believe the government must incentivize development or else Halifax’s rental situation will deteriorate.