Halifax vacancy rate improves but affordable rentals still hard to find, CMHC says

A new report is showing some improvements in the Halifax rental market this year.

The Canada Mortgage and Housing Corporation’s (CMHC) Fall Rental Market Report finds Halifax’s overall vacancy rate increased this year, but the market remains tight for lower rent segments.

The HRM’s apartment vacancy rate went up to 2.1 per cent, from the 1 per cent it had been at for three straight years.

The report says migration to the province has slowed, including temporary foreign workers and students, and people moving here from other provinces.

CMHC says rental demand slowed this year for new, premium rentals, particularly in the downtown core. It cites local market intelligence in finding those types of units took longer to rent because of high asking rents.

But it also says lower-rent unit remain very hard to find. It says the vacany rate for apartments under $1,300 is now well below 1 per cent, with many existing tenants unable to afford to move. The rental turnover rate remains at a seven year low.

Rent growth for a two-bedroom was 3.8 per cent, much lower than previous years increases, but the report says the average rent of apartments that turned over the new tenants increased by roughly 28 per cent.

CMHC says there is record new rental construction happening, but it will take time before enough supply is added to improve rental affordability.