Softer rental market conditions have contributed to a nominal downturn in condominium sales across the Halifax Regional Municipality this year, as would-be buyers respond to increasingly attractive rental incentives. Just over 570 condominiums sold between January 1 and October 31 of this year, down 8.8 per cent from the 626 sales reported in 2024. Year-to-date average price for condominiums experienced a slight uptick during the same period, rising to $487,719 in 2025.
Pricing challenges for new supply
Much of the new condominium product coming on stream is more expensive than existing stock, with prices ranging north of $500,000 for 700 sq. ft. plus monthly maintenance fees—a tough sell given that a semi-detached home with over 2,000 sq. ft. can be purchased for $450,000. The sweet spot for condominium product likely sits at about $300,000, but supply in the price range is limited to 20- to 30-year-old wood-frame buildings, offering few amenities. Approximately 225 condominium units are currently listed for sale, ranging in price from $275,000 to $3.5 million, with most hovering near $550,000.
Parking also remains a complicating factor, particularly on the peninsula, where municipal approvals have reduced parking spaces in new buildings in recent years, with only 60 to 70 per cent of units having access. As a result, parking spots have become a commodity, with some selling privately for as much as $20,000.
Developers are now reassessing their strategies, with many shifting planned condominium projects to rentals—a reversal of the long-standing preference for condominium development in recent years.
Population growth and construction trends
Halifax’s population soared nearly 10 per cent between 2021 and 2024, driven by strong immigration and in-migration that bolstered the Census Metropolitan Area (CMA) to more than 530,000 residents. A construction boom followed, with more than 9,100 dwelling completions reported between July 2021 and July 2024, according to the Nova Scotia Finance Department.
While homebuilding activity has tapered over the past year due to rising costs of land, material and labour shortages as well as broader economic uncertainty, construction continues despite a significant increase in supply.
Rent versus ownership in 2025
In a market historically inclined toward renting, the economic case for condominium ownership has weakened. Empty nesters, retirees, and younger people who were in large part responsible for the uptick in condominium sales on the peninsula are increasingly shifting to new rental options. Modern, purpose-built rentals now offer comparable square footage and amenities, alongside incentives such as one-month’s free rent, temporary utility coverage, or waived security deposits.
Cautious optimism for 2026
Looking ahead, prospects for Halifax’s condominium market are cautiously optimistic. Anticipated reductions in interest rates early in the new year, paired with gradually improving economic conditions, are expected to bolster consumer confidence and support stronger condominium activity across the Halifax CMA. Lower borrowing costs should help ease monthly carrying expenses, narrowing the gap between renting and owning, and potentially drawing sidelined purchasers back into the market.
Meaningful challenges will continue to persist, as high construction and development costs are absorbed by purchasers, while wage growth has not kept pace with current housing values. The affordability gap remains a defining constraint, shaping the pace and depth of any recovery in the condominium sector.
