Premier Tim Houston announces that the province has contributed $2.66 million to an affordable housing development project in the town of Yarmouth. Joining him for the announcement were Yarmouth MLA Nick Hilton, Yarmouth Mayor Pam Mood and Argyle MLA and Growth and Development Minister Colton LeBlanc. Photo by Tina ComeauArticle contentNova Scotia is struggling with a housing crisis amid an immigration-fuelled population boom.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLY.Subscribe now to access this story and more:Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsSUBSCRIBE TO UNLOCK MORE ARTICLES.Subscribe or sign in to your account to continue your reading experience.Unlimited access to the website and appExclusive access to premium content, newsletters and podcastsFull access to the e-Edition app, an electronic replica of the print edition that you can share, download and comment onEnjoy insights and behind-the-scenes analysis from our award-winning journalistsSupport local journalists and the next generation of journalistsRegister to unlock more articles.Create an account or sign in to continue your reading experience.Access additional stories every monthShare your thoughts and join the conversation in our commenting communityGet email updates from your favourite authorsSign In or Create an AccountorArticle contentIn response, the Houston government in February announced $136.4 million in spending for 242 new government (or public) housing units. Combined with previous commitments, that brings the total number of public housing units planned or under construction to 515.Article contentArticle contentArticle contentBut rather than solving the crisis, public housing is becoming a costly distraction from more effective ways to help boost supply and support those most in need.Article contentFor example, the 242 units announced in February will cost a projected $563,636 per unit, substantially higher than the average sale price (in May 2025) of a townhouse ($548,860) or apartment ($511,258) sold in Nova Scotia.Article contentAnd that cost projection covers only the construction. Ongoing maintenance and administration by the Nova Scotia Provincial Housing Agency (NSPHA) comes with additional costs. NSPHA employs more than 500 staff to manage around 11,200 units, and last year it received more than $81 million in provincial operating funding, about $7,500 per unit, above and beyond what tenants paid in rent (roughly $6,100 per unit per year).Article contentWhile tenants in public housing pay no more than 30 per cent of their income in rent, the system itself is far from affordable.Article contentArticle contentTo justify these costs, the government claims they add much-needed new homes for Nova Scotians. But that claim deserves scrutiny. Taxpayers pay for public housing, but it’s built by the same private contractors who would otherwise build private homes.Article contentSince homebuilding capacity can’t expand overnight, government projects compete for workers and material. That can push up costs and make some private projects too costly to finish. While public housing does add homes to the housing stock, it also may discourage some private homebuilding, meaning the true boost in total housing is likely much smaller than advertised.Article contentBut there’s good news. There are more impactful and cost-effective options to unlock housing supply and improve housing affordability.Article contentFirst, the government should end any provincial policy that discourages housing development, such as rent control (which can deter builders from building rental units) and provincial sales taxes on new or substantially renovated homes (which increase costs and deter building).
Opinion: Nova Scotians will pay high price for Houstons affordable public housing
