The Nova Scotia government is pledging to invest at least $1 billion in housing construction over the next five years.

The province released a five-year housing plan designed to develop 41,200 residential units during that period. Many of the government-funded projects are expected to be multi-family real estate rental assets, including affordable housing units.

“We recognize there is a massive need,” John Lohr, the province’s housing minister, told the minister told reporters Monday.

Across Nova Scotia, median rents jumped 24% between 2019 to 2022, according to the province’s housing needs assessment report.

According to the report’s key findings: Supply fell short of demand by 27,300 units; the current pace of construction cannot fill the supply-demand gap; a balance of studio/one-, two- and three-plus-bedroom suites will be needed and many communities lack affordable options.

To spur development, Nova Scotia has lifted its 10% sales tax on rental-housing projects. In September, the provincial government partnered with Ottawa on the development of 222 public housing units in the the province.

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