Halifax’s Housing Boom: A Double-Edged Sword

Overview

Halifax, the Maritime city’s landscape is changing rapidly, with construction cranes dotting the skyline and foundational work taking place across the downtown. According to data from the Canada Mortgage and Housing Corporation (CMHC), almost 4,700 new housing starts are expected in both 2023 and 2024—a figure that starkly contrasts with the previous two decades, where annual new construction ranged between 1,700 and 3,300. With nearly 9,954 units under construction last year, up from just 2,606 a decade ago, Halifax seems to be on the cusp of a housing renaissance.

The Current Housing Landscape

Despite the surge in development, many residents and housing experts express concerns that the new units being constructed are not adequately addressing the growing demand. A report by Turner Drake & Partners has identified a need for an additional 17,500 housing units to meet current needs—a gap projected to widen to 31,000 by 2027 if current development rates hold.

The Rising Tides of Population and Prices

Population growth in Halifax has shifted dramatically, particularly post-2016. From a modest annual increase of less than one percent, the city has seen an influx of new residents, climbing close to two percent yearly. The COVID-19 pandemic catalyzed this trend, drawing individuals from larger cities seeking a more affordable lifestyle. As a result, Halifax’s population surged from just over 400,000 in 2013 to nearly 500,000 today.

This population growth has led to skyrocketing housing prices; the median home price rose by 67 percent from 2019 to 2022, significantly higher than the 12 percent increase recorded in the three years prior. Rental costs have similarly skyrocketed, compounding the pressure on prospective homeowners and renters.

The Role of Government Intervention

In response to soaring prices, the federal government introduced the Housing Accelerator Fund, allotting $79 million to Halifax to expedite the development of new housing units. However, the approach has raised questions about the effectiveness of merely increasing supply in a market where prices continue to rise. Changes to zoning laws will allow for taller and more densely populated buildings throughout the city, but the impact of these alterations on affordability remains uncertain.

Ground-Level Perspectives

Irfan Alkasem, president of Amara Developments, notes that the recent zoning changes have enabled him to build multifamily homes in areas previously limited to single-family constructions. In Spryfield, his current development project includes 72 homes, and the sales reflect strong demand despite rising prices.

The Shrinking Gap for Affordability

While developments like Alkasem’s bring new housing options to Halifax, many locals are still feeling the pinch. In 2024, the average home price reached around $538,000, with some homes selling for over $600,000. This situation is concerning, especially for younger families earning middle-class incomes, as they find themselves priced out of the market entirely.

Everly Lawless, a local resident, describes the difficulties faced by her generation, with many unable to buy homes despite steady jobs and incomes. Her personal experience highlights a growing sentiment among residents—that the current boom has not translated to increased affordability.

The Political Landscape and Housing Proposals

As the federal election approaches, both the Liberal and Conservative parties have revealed ambitious housing plans. The Liberals are pushing to double home construction to 500,000 units annually, while the Conservatives advocate for tax breaks for newly-built homes under $1.3 million to stimulate market growth. Local housing advocates express cautious optimism about these initiatives but stress the need for substantive actions that address the root causes of the housing crisis.

The Challenges Ahead

Philip Fraser, CEO of Killam REIT, emphasizes that significant hurdles remain—most notably the shortage of skilled workers and skyrocketing building costs. The reality is that even with good intentions, political promises may fall short of solving the crisis.

At the community level, local initiatives aiming to fill the affordable housing gap face significant obstacles, ranging from securing land to navigating community opposition. Bruce Holland from the Spryfield Social Enterprise and Affordable Housing Society underscores that private developers often lack the incentive to build affordable units, as profitability remains the primary concern.

The Path Forward

The evolving housing situation in Halifax illustrates a complex interplay between rapid development and increasing costs that disproportionately affects residents. While new projects propose growth and vibrancy in the city, the discourse surrounding affordability invites a more profound exploration of solutions—ones that go beyond sheer numbers.

As Halifax continues its construction boom, it remains crucial for policymakers, developers, and stakeholders to focus on creating genuinely affordable housing options. Only then can they hope to turn the tide against the burgeoning housing crisis that threatens the fabric of this community.

The discussions surrounding housing in Halifax serve as a microcosm of broader national issues, highlighting the urgent need for innovative solutions and collaborative efforts to address housing challenges across Canada. What happens next will be pivotal for the city, its residents, and its future.