Published Apr 19, 2025 • Last updated 20 hours ago • 2 minute readHousing construction in Nova Scotia has increased but not by nearly enough to keep pace with the population explosion, write Alex Whalen and Austin Thompson. SunMediaIn a recent survey, Haligonians identified “housing” as the most important issue facing their city — and it’s easy to see why.House prices have surged by 77 per cent province-wide since the pandemic (January 2020 to January 2025) while monthly rent for a typical two-bedroom unit has jumped from $1,050 in 2019 to $1,502 in 2024. Consequently, many areas of the province have become unaffordable for ordinary Nova Scotians.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 contentWhy? Because too few homes have been built to accommodate Nova Scotia’s growing population.The province has experienced an unprecedented population boom due mainly to record-high levels of immigration. In 2023, the province added a record 29,134 new residents — nearly double the pre-pandemic peak in 2019. While population growth slowed to 15,379 in 2024, this was still higher than any year prior to the pandemic. Remarkably, in the decade between 2015 and 2024, Nova Scotia’s population grew by more than it had during the entire previous 40 years.Meanwhile, housing construction has increased but not by nearly enough to keep pace with the population explosion. In 2024, construction began on 7,381 new housing units — the highest annual total since 1986 — but back then, population growth was less than one-quarter of today’s level.Moreover, in 2024 the province added 2.1 new residents for every new housing unit started — more than twice the annual average rate of 0.8 new residents per housing start between 1972 and 2019. This means that for every new home built in Nova Scotia today, there are more than twice as many people potentially looking to rent or buy it compared to past decades. And housing follows the laws of supply and demand; as more buyers chase a limited number of homes, prices will rise.Article contentSo, how can policy makers in Nova Scotia help spur homebuilding and increase affordability?Nova Scotia has little control over its population growth, which is largely driven by federal immigration and residency policies. But provincial and municipal policies can affect the pace of homebuilding.Unfortunately, government policies are deterring housing development. For example, the Houston government’s rent controls discourage developers from constructing much-needed rental units. And while the government exempts purpose-built rentals from provincial sales tax and offers a rebate of up to $3,000 to first-time homebuyers, it still applies sales tax to most new or substantially renovated homes, increasing costs for buyers and builders.At the municipal level, approval delays on new housing in Nova Scotia are longer than in New Brunswick and Prince Edward Island. For example, housing developers have to wait an average of 9.8 months to receive a building permit in Halifax, versus 3.5 months in Charlottetown and 2.4 months in Moncton.Article contentHowever, there have been some positive steps. New provincial rules adopted last summer will make it easier for developers to build more high-density housing. In Halifax, these provincial reforms will build on recent municipal changes aimed at facilitating more housing construction. Further, the Houston government has designated nine “special planning areas” in the Halifax Regional Municipality in an effort to reduce approval times and cut through red tape.Nova Scotia’s housing affordability woes will likely persist unless housing construction accelerates, spurred by bold policies that encourage, rather than restrict, development.Alex Whalen and Austin Thompson are economists at the Fraser Institute.Article content
COMMENTARY: N.S. population explosion dwarfs homebuilding rate
