Looking to invest in Nova Scotia's real estate market? Here's a quick guide to the 5 most profitable multi-unit property types in 2025, offering stable income and growth potential:
- Duplexes: Affordable entry point with cap rates of 5.50%-6.25%. Great for strategies like house hacking or renting both units.
- Triplexes: Multiple income streams with potential monthly earnings starting at $2,800 in areas like Dartmouth.
- Fourplexes: Balance between cost and returns, generating over $10,000/month in prime locations.
- Small Apartment Buildings (5-12 Units): Steady income with rising rental rates and low vacancy (0.5%-1.5%).
- Mixed Commercial-Residential Properties: Diverse income sources and long-term value from combining residential and commercial spaces.
Quick Comparison
| Property Type | Key Benefit | Typical Monthly Income | Price Range |
|---|---|---|---|
| Duplexes | Affordable, flexible strategies | $1,850+ per unit | $285K–$537K |
| Triplexes | Balanced income streams | $2,800+ | $549K–$3.3M |
| Fourplexes | High tenant retention | $10,000+ | $200K–$1.8M |
| Small Apartment Buildings | Low vacancy, strong cash flow | $1,370–$1,922/unit | Varies by size |
| Mixed-Use Properties | Multiple income sources | Varies (8-12% ROI) | Varies by location |
With low vacancy rates, rising rents, and government support for housing, Nova Scotia offers strong opportunities for multi-unit property investments in 2025. Read on for more details on each property type, including strategies, costs, and market trends.
The Beginner's Guide to Small Multifamily Real Estate Investing
1. Duplexes
Duplexes are a popular investment option in Nova Scotia, offering attractive returns. In Halifax, cap rates range between 5.50% and 6.25% [3]. Construction costs for duplexes are about 63% of what it takes to build two separate single-family homes [4]. Companies like Helio Urban Development provide pre-designed duplexes starting at $175 per square foot, typically including 3 bedrooms and 2.5 baths.
Investors can approach the duplex market in two main ways:
| Strategy | Cost Range | Key Benefits |
|---|---|---|
| New Construction | $285,000 - $537,000 | Modern features, lower upkeep, energy efficiency |
| Single-Family Conversion | $80,000 - $100,000 | Lower upfront costs, established neighborhoods |
Duplexes house two separate households, allowing strategies like house hacking (living in one unit while renting the other) or renting both units - though zoning rules will apply.
In September 2023, Halifax introduced updated land-use regulations for rental properties [5]. Before diving in, investors should:
- Use the municipality's mapping tool to confirm zoning.
- Contact local planners by dialing 311.
- Familiarize themselves with short-term rental restrictions.
With reduced construction costs and solid rental income potential, duplexes are a smart way to enter Nova Scotia's multi-unit property market.
2. Triplexes
Triplexes in Nova Scotia are a solid investment choice, offering multiple income streams and qualifying for standard residential mortgage rates. For example, a renovated triplex at 3619 Acadia Street in Halifax's North End includes two 2-bedroom units and one 3-bedroom unit, all under ER-3 zoning [6][7].
Here's a breakdown of triplex pricing and income potential across different areas:
| Location | Price Range | Monthly Income Potential | Notable Features |
|---|---|---|---|
| Halifax Core | $1.2M – $3.3M | $3,700+ | ER-3 zoning; renovated units |
| Dartmouth | $800K – $1.5M | $2,800+ | Close to Lake Banook |
| Amherst | $549K – $750K | $3,500+ | Mixed unit sizes |
For instance, an Amherst triplex can generate around $3,500 per month. This includes rents of $1,850 for a main two-bedroom unit, $975 for a basement one-bedroom, and $675 for a garage one-bedroom [6][7].
Investors typically need a 25% down payment (or 15% with mortgage insurance) and must meet a debt coverage ratio of 1.25 [2]. Rent control policies currently cap increases on existing leases at 5% until 2025, while new leases follow market rates. Mark Culligan from Dalhousie Legal Aid Service explains:
"We have a patchwork system of rent control here in Nova Scotia. It was built as an emergency measure and now it's breaking down even more" [9].
Helio Urban Development also provides pre-designed triplexes with modern, energy-efficient systems at competitive prices.
Before committing to a triplex investment, consider these steps:
- Check historical income and expenses for the property.
- Use Halifax's Centre Plan Zoning Map to confirm zoning compliance [8].
- Inspect the property for construction quality and potential issues.
- Review rental board records for any violations or unpaid fines [2].
With rental inflation in Nova Scotia hitting 14.1% [9], triplexes remain a promising option for investors, especially in areas with high rental demand and favorable zoning regulations.
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3. Fourplexes
Fourplexes strike a balance between affordability, income potential, and ease of management for investors in Nova Scotia. For instance, a fourplex in Halifax’s downtown area can generate over $10,000 in monthly rental income, with estimated annual returns of $115,000 and operating expenses around $16,500 [10]. Typically, fourplexes in Nova Scotia are priced between $200,000 and $1.8 million.
Some developers offer pre-designed fourplexes equipped with modern features and energy-efficient systems, making them an attractive option for buyers.
When exploring fourplex investments, keep these factors in mind:
- Location: Properties in urban areas, particularly near universities or downtown hubs, tend to attract more tenants and fetch higher rents.
- Parking: Providing at least one parking spot per tenant can improve your property’s appeal and align with local norms.
- Building Codes: The Nova Scotia Building Code Act and municipal by-laws dictate construction standards, so ensure compliance before proceeding [11].
Fourplexes are easier to finance than larger apartment buildings and often fall under residential mortgage terms. They’re ideal for investors seeking manageable properties with solid income potential.
As with any multi-unit investment, understanding local zoning laws and market trends is crucial. Before buying, confirm zoning compliance, calculate potential returns based on current rents, check permit requirements, and evaluate parking options and tenant demographics. Urban areas with strong rental demand are particularly favorable, as they offer consistent occupancy rates, steady cash flow, and long-term growth opportunities.
4. Small Apartment Buildings (5-12 Units)
Small apartment buildings, ranging from 5 to 12 units, are a promising choice for investors looking for manageable operations with solid income potential. They strike a balance between smaller properties like fourplexes and larger complexes.
In Halifax, the market for these buildings is performing well. Property managers have reported net operating income increases of 12% to 14%, with average monthly rents ranging from $1,370 to $1,525. In some cases, rents have surged by up to 23% when new tenants move in [14].
Here’s a snapshot of average monthly rents across Halifax in 2023:
| Area | Average Monthly Rent |
|---|---|
| Dartmouth North | $1,246 |
| Halifax Overall | $1,538 |
| Remainder of Halifax | $1,922 |
These numbers showcase the strong earning potential of small apartment buildings, especially as rental rates continue to rise.
Key factors to keep in mind:
- Low vacancy rates: With rates between 0.5% and 1.5%, demand for these units remains steady [15].
- Value-adding renovations: Projects like the 16-unit Oyster Pond renovation, which included upgrades like water views and heat pumps, demonstrated how strategic improvements can boost both property value and rental income [12].
- Operational efficiency: Industry leaders emphasize that better management can significantly increase net income. However, understanding the local community is essential for success.
"When you go into these smaller communities, you're an outsider. Unless you win them over, they're going to treat you like an outsider" [13].
For those concerned about high acquisition costs, new construction or partnerships can be a smart alternative. Halifax added 360 new apartment units in 2023, with low-rise, wood-frame buildings emerging as a cost-effective way to grow portfolios in smaller markets [13][15].
5. Mixed Commercial-Residential Buildings
Mixed commercial-residential properties combine retail, commercial, and residential spaces, offering diverse income streams and lowering tenant concentration risks.
Research shows these developments tend to grow in value faster than single-use properties [16]. They also thrive on walkable designs and active community environments [17].
Here's a quick comparison between mixed-use and single-use buildings:
| Investment Factor | Mixed-Use Properties | Single-Use Properties |
|---|---|---|
| Income Sources | Multiple (residential + commercial) | Single tenant type |
| Risk Level | Spread across tenant types | Higher concentration risk |
| Tenant Retention | Strong due to community focus | Market-dependent |
| Operating Costs | Shared across uses | Single-category expenses |
Navigating local regulations is a critical step for success. For instance, the Cape Breton Regional Municipality has specific rules on building height, setbacks, parking, and lot sizes [18].
Property managers emphasize that balancing tenant types is key to maximizing returns. A well-managed mixed-use property in the region can achieve an 8–12% return on investment (ROI) [20].
To boost profits, investors often focus on two main areas:
-
Strategic Space Allocation
Vertical integration (stacking residential and commercial spaces), horizontal layouts (grouping single-use buildings into walkable zones), and careful planning for density and parking [19]. -
Operational Efficiency
Hiring professional property managers, creating customized lease agreements, and maintaining shared spaces regularly [21].
These approaches make mixed-use properties attractive and set them up for steady long-term gains.
Over the past three years, mixed-use rents in Nova Scotia have climbed 21.6% [20]. Globally, this sector is expected to grow by more than 20% [16]. Like other multi-unit investments in the area, mixed-use properties rely on careful planning and management to maximize profitability.
"Projects that embrace a holistic approach early in the development process get a better balance of all their attributes sooner. That leads to a more successful project at the end of the day" [19].
For anyone exploring mixed-use investments, partnering with experienced real estate attorneys and property managers is crucial to handle the complexities of these projects [21]. Open communication with tenants also helps create the community vibe that boosts tenant retention and property value [21].
Conclusion
Nova Scotia's multi-unit housing market is showing strong growth, driven by low vacancy rates and increasing rents [22]. Each property type brings its own benefits, offering diverse opportunities for investors.
Property Types at a Glance
| Property Type | Advantage | Market Trends |
|---|---|---|
| Duplexes | Affordable entry with owner options | High urban demand |
| Triplexes | Balanced income and risk | Strong rental growth |
| Fourplexes | Cost efficiencies | High tenant retention |
| Small Apartments | Diverse tenant options | Growing development activity |
| Mixed-Use | Multiple income sources | Stable long-term value |
These options highlight the variety of opportunities in the market, allowing investors to tailor their strategies.
Market Insights
The numbers speak for themselves: multi-unit housing starts jumped from 3,465 in 2022 to 5,060 in 2023 [23]. Even with higher interest rates, mortgage delinquency rates are at a record low of 0.12% [22], reflecting a stable investment environment.
Key Considerations for Investors
- Prime Locations: Properties in downtown Halifax or near universities are in high demand and often appreciate faster [1].
- Construction Costs: Development costs through firms like Helio Urban Development start at $168/sq. ft. for single-family homes and $175/sq. ft. for duplexes. However, construction costs in Halifax rose by 8.3% in 2023 [22].
- Affordability and Returns: Halifax still offers one of the most affordable average home prices among key cities, paired with a tight rental market that supports steady income growth [22].
"Property typically appreciates steadily over time and if maintained, can potentially yield great returns."
– Andrew Perkins, Perkins Group [1]
Looking ahead, economists anticipate potential interest rate cuts in 2024 [25], which could further boost the market. Additionally, East Coast cap rates often outperform those in larger markets like Toronto and Vancouver [24], making Nova Scotia particularly appealing for investors focused on cash flow.
To succeed, investors should prioritize properties with adequate parking, comply with safety standards, and consider professional property management. With strong urban growth and favorable demographics, Nova Scotia's multi-unit housing market is well-positioned for continued success.
