New regulations on N.S. short-term rentals in effect Monday

New regulations on short-term rentals, including Airbnbs, come into effect Monday across Nova Scotia.

Housing Minister John Lohr said system will work to help combat the province’s growing housing crisis.

“Nova Scotians need housing. We know many houses and apartments that could potentially be long-term homes are being rented short term,” Lohr said in a news release in August. “We’re working to get more homes built. In the meantime, these changes will help address the urgent need for housing now.”

Nova Scotia’s population is booming, with Halifax as the fastest growing city. While the growth is a positive for the provincial economy, it has drastically exacerbated the burgeoning housing crisis. Premier Tim Houston said in 2023 that the benefits of the boom will outweigh the challenges, but the province’s own housing need assessment report tells a different story.

The report projects there will be a shortage of 41,200 housing units by 2027-28. This shortage is driving up the prices of both homes to buy and rentals, hitting the residents most in need.

In 2023, rent rose faster in Nova Scotia than anywhere else in Canada. According to an annual report from the Canadian Mortgage and Housing Corporation (CMHC), published in January, the average rent for a two-bedroom apartment in Halifax rose nearly 13 per cent between 2022 and 2023 to $1,628.

A United Way Report, published the same month, determined Nova Scotia also had the highest provincial poverty rate in the country, with one in 10 people in Halifax living in poverty.

The Canada Mortgage and Housing Corporation (CMHC) report found 2,842 new units were added to Halifax’s market in 2023. Meanwhile, net migration to the province increased by a record-breaking 33,249 that year —  many of whom ended up in Halifax, the province’s largest city.

In September 2023, the province announced it would build 222 new public housing units — the first investment in public housing in nearly three decades. But that number does not come close to the demand.

The problem has only worsened as short-term rentals and Airbnbs infiltrate the market. As a response, the province is taking action on regulations for these rentals to boost the availability of long-term housing options.

The new rules will require short-term rentals to provide documentation proving compliance with municipal bylaws, consent from condo boards and primary residence. There will also be a registration fee which will range from $50 to $2,000 with higher rates in areas with a greater need for housing.

Operating without a valid registration number is an offence. Beginning Monday fines will range from $1,000 per offence to a maximum of $100,000.

The regulations will put Nova Scotia on par with British Columbia, which established short-term rental rules earlier this year.