The 2026 Apartment Boom: Will Record-High Supply Finally Cool Halifax Rents?

The 2026 Apartment Boom: Will Record-High Supply Finally Cool Halifax Rents?

For years, the Halifax rental market has felt like a pressure cooker. With vacancy rates hovering near historic lows and double-digit rent hikes becoming the norm, finding an affordable place to live in the HRM has often felt like winning the lottery.

However, as we look toward 2026, the narrative is shifting. A wave of new construction is hitting the market, and for the first time in a decade, the scales of supply and demand are beginning to tilt. Here is a look at whether this “Apartment Boom” will actually lead to a price drop for Haligonians.

1. The Numbers: A Record Influx of Units

The sheer volume of units scheduled for completion by 2026 is unprecedented. Driven by the Housing Accelerator Fund (HAF) and recent zoning overhauls, Halifax is on track to add thousands of new homes.

  • Target Growth: The city’s HAF Action Plan aims to deliver 15,467 new housing units between 2023 and 2026.
  • Rising Vacancy: After years of a suffocating 1.0% vacancy rate, the market is already showing signs of “breathing room.” Reports from late 2025 show the vacancy rate ticking up toward 2.7%, with projections suggesting it could stabilize or rise further by 2026.
  • Turnover Relief: For the first time, “turnover rents” (the price a landlord asks when a tenant moves out) have seen a slight downward trend in some sectors of the city.

2. The “Filter Effect”: Will Luxury Units Help Everyone?

A common criticism of the current boom is that most new builds are “luxury” or “market-rate” apartments with premium price tags. However, economists point to the filtering effect:

  • Reduced Competition: When high-income renters move into new, high-end buildings, they stop competing for older, more modest apartments.
  • Incentives are Back: In 2025 and 2026, we are seeing the return of “move-in specials”—such as one month of free rent or discounted parking—strategies landlords haven’t had to use in Halifax for years.

3. The Counter-Forces: Why Rents Might Not “Plummet”

While the supply boom is real, several factors are preventing a dramatic crash in rental prices:

  • Population Growth: Halifax remains one of the fastest-growing cities in Canada. Even with record supply, the constant influx of new residents keeps the floor from falling out.
  • Operating Costs: Landlords are facing higher property insurance (up 9% annually) and rising utility costs, which they often pass on to tenants.
  • Fixed-Term Lease Loophole: Despite the provincial 5% rent cap for existing tenants, the use of fixed-term leases allows landlords to reset prices to market rates once a lease ends, keeping average prices high.

The Verdict: Cooling, Not Freezing

Will Halifax rents “cool” in 2026? The answer is a cautious yes. We are unlikely to see a massive drop in monthly rent totals, but we are entering a period of price stabilization. The days of 15% annual increases appear to be behind us. For renters, 2026 will mean more choices, more leverage during negotiations, and a market that—while still expensive—is no longer in a state of constant crisis.

Key Takeaway: The “Boom” won’t make Halifax cheap overnight, but it is successfully breaking the “scarcity mindset” that has dominated the city since 2020.

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Halifax Real Estate FAQs

What is the average cost of a home in Halifax right now?

As of late 2025, the average selling price for all residential property types in Halifax sits at approximately u003cstrongu003e$612,443u003c/strongu003e.

Is Halifax currently a buyer’s or a seller’s market?

The market is currently in a u003cstrongu003eu0022Balancedu0022 stateu003c/strongu003e, leaning slightly toward sellers in high-demand pockets. With about u003cstrongu003e3.8 months of inventoryu003c/strongu003e (as of November 2025), there is more choice for buyers than in previous years, but low listing volume during the winter months continues to support price stability and firm asking prices.

Are property taxes going up in 2026?

Yes, Halifax homeowners should prepare for a significant hike. The Halifax Regional Municipality has proposed a u003cstrongu003e10.5% property tax increaseu003c/strongu003e for 2026. This is driven by rising municipal spending, including inflation, staff compensation, and infrastructure commitments. This increase is nearly double the 5.2% hike seen in the previous year.

How long does it typically take to sell a home in Halifax?

In the current late-year market, the average u003cstrongu003eDays on Market (DOM) is 94 daysu003c/strongu003e. While homes priced accurately in desirable areas like the North End or West Bedford still sell within 2-3 weeks, unique properties or those with u0022optimisticu0022 pricing are sitting longer as buyers become more selective due to borrowing costs.

Is it a good time to invest in Halifax real estate?

Halifax remains a strong long-term play due to its u003cstrongu003elow vacancy rate (approx. 2.1%)u003c/strongu003e and consistent population growth. I

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