Former HRM councillor says high interest rates discouraging development

A former Halifax councillor says high interest rates have prompted many developers to put money in investments rather than build new housing.

According to Stephen Adams, developers have faced high interest rates that have made the loans that finance construction more expensive.

He says this has resulted in many developers putting their investment elsewhere rather than building new housing.

Adams is currently executive director for the Urban Development Institute of Nova Scotia.

He told CityNews Halifax, HRM should increase the heights allowed for developments around universities, hospitals and bus routes.

“It doesn’t cost the city a thing to do that,” Adams says. “With one stroke of a pen, it is done and then they will start building. Even with the interest rates as they are now, you will see building occur and a lot of it.”

Adams says a change like this will help accomodate students, health care workers and new Canadians who are in need of housing.