Halifax multi-family rent growth declined sharply in 2024, says the Canada Mortgage and Housing Corporation.

The average increase for a two-bedroom apartment was 3.8% in 2024 compared to 11.3% in 2023, according to the federal housing agency.

“Rental-apartment completions and slower population growth relieved some of the pressure in the Halifax rental market in 2024,” said CMHC.

Asking rents reached a ceiling as they were constrained by renter affordability limits and the weaker demand for higher-priced units.

Rental demand slowed for newer premium units, particularly those located in the downtown area.

“Local market intelligence suggests these units took longer to rent and saw higher vacancies due to high asking rents,” said CMHC.

As a result, some landlords offered one month of free rent as an incentive to sign a lease.

Turnover rents spiked 28.3% year-over-year, marking the largest hike in Canada and exceeding the national average of 23.5%.

“Many existing tenants can’t afford to move,” said CMHC.

Meanwhile, the Nova Scotia capital’s apartment vacancy rate increased for the first time in four years, to 2.1% from 1% in 2023.

However, lower rent segments remained tight amid persisting high demand. CMHC noted that units priced under $1,300 per month saw vacancy fall well below 1%.

The rental-apartment turnover rate remained at a seven-year low.

A record number of new rental construction starts in recent years have led to a large increase in apartment stock and helped to ease market conditions in 2024.

But construction worker availability and the overwhelming number of ongoing projects limited the completion rate for new units.

“It will take time before enough supply is added to improve rental-market affordability,” said CMHC.

In contrast to conditions in other large cities, the Halifax condo-rental market posted extremely tight vacancy of 0.5% as rent for an average two-bedroom unit averaged $2,334.

Pictured: Rental-apartment building in Halifax.

Photo: Realtor.ca