Halifax is facing a housing crisis, with a shortage of 17,500 units and skyrocketing rents. To tackle this, the city introduced zoning changes effective June 13, 2024, aiming to add 15,467 new homes by 2026 and increase housing capacity by 71,000 units in the Regional Centre.
Key Changes:
- Increased Density: Taller buildings and more units allowed per lot (e.g., up to 8 units in ER-3 zones).
- Mixed-Use Zones: Height limits raised near transit (e.g., 40 stories in Center Areas).
- Faster Approvals: Streamlined processes to reduce delays.
Why It Matters:
Halifax's population is growing rapidly, but housing supply isn't keeping up. These changes aim to close the gap, though challenges like affordability and infrastructure remain.
Bottom Line: Halifax is taking bold steps to address its housing crisis, but success hinges on balancing growth with affordability and infrastructure needs.
Halifax Proposed Zoning Changes January 2024
Main Zoning Changes
Halifax's updated zoning rules, set to take effect on June 13, 2024, aim to address the housing shortage through three major updates. Here's what you need to know:
New Density Rules
The changes allow for greater building heights and unit density in specific zones:
- ER‑2 zones: Buildings can now reach up to 36 feet.
- ER‑3 zones: Heights increase to 39 feet, with up to eight units allowed per lot.
- Suburban zones: Four units per lot are permitted, and minimum parking requirements are removed [2].
In ER‑3 zones, property owners can develop up to eight units, including duplexes, townhomes, or small apartment buildings [3].
Mixed-Use Zones
The new rules encourage development near transit routes with expanded height limits:
| Zone Type | New Height Limit |
|---|---|
| Corridor Zones | 7–9 stories |
| Centre Areas | 40 stories (up from 30 stories) |
| University Areas (HR‑2) | 9 stories |
The focus is on increasing housing options and supporting urban growth near transit hubs [2].
"It is a transformational opportunity to drive housing in our community", said Jacqueline Hamilton, Halifax's executive director of planning and development [2].
Faster Approval Process
To speed up housing projects, additional staff and improved procedures will reduce approval wait times. The updated system is expected to add regulatory capacity for around 71,000 new units in the Regional Centre alone [3]. These changes aim to streamline development and increase housing availability, with full implementation required within two years of the program's launch [3].
Expected Housing Supply Effects
This section expands on earlier discussions about housing shortages and regulatory updates, focusing on how new zoning policies are expected to impact housing supply.
New Housing Numbers
Zoning changes in Halifax are set to significantly increase housing capacity. These updates could allow for around 71,000 new housing units in the Regional Centre alone [3]. This expansion is designed to tackle the current housing shortfall of nearly 20,000 units [3].
The HAF Action Plan outlines specific targets:
| Timeline | Housing Target |
|---|---|
| Short-term (by 2026) | 2,600 net new units |
| Total 3-year goal (2023-2026) | 15,467 new units |
| Regional Centre capacity | 71,000 units |
These ambitious goals provide a framework for rapid development.
Development Timeline
The plan is already in motion. Building on prior regulatory updates, the HAF program aims for full implementation within two years [3]. This timeline is critical, given Halifax's population growth of 2–4.5% annually, with over 20,000 new residents added just last year [3].
"The municipality's HAF Action Plan aims to help create 2,600 net new housing units, part of the municipality's total target of 15,467 new housing units over three years, between 2023 and 2026." - Halifax Regional Municipality [1]
Past vs. Future Growth
Halifax's recent growth highlights its market momentum, with new regulations expected to accelerate this trend. The city recorded its highest annual housing starts since 1989, making it the fastest-growing housing market among Canada’s 20 largest cities [4].
Here's how development has shifted:
| Housing Type | 2023 Performance |
|---|---|
| Multi-unit Starts | 4,128 units (58% increase) |
| Single-unit Starts | 529 units (below 10-year average of 710) |
| Total Annual Growth Rate | 11.4% CAGR since 2014 |
The updated zoning policies are expected to further boost multi-unit housing. This shift is essential, as Halifax has faced a persistent 1.0% vacancy rate over the past three years, with rental prices climbing by over 11% in the last year [3].
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Risks and Issues
While ambitious development goals are set, several challenges could threaten long-term success. Despite plans for housing growth, key obstacles remain.
Infrastructure Capacity
As density increases, infrastructure struggles to keep up. Some of the main issues include:
| Infrastructure Type | Current Challenges | Planned Solutions |
|---|---|---|
| Water Systems | Strain on existing networks | Developer-funded upgrades required |
| Transit | Limited capacity | Implementation of the Rapid Transit Strategy |
| Public Services | Educational facility constraints | Enhanced coordination with service providers |
Halifax Water is revising growth-related planning documents, and developers are expected to manage local infrastructure needs.
"Planning and Development staff continuously share information and work with service providers, including Public Works, Halifax Transit, Halifax Water, Parks and Recreation, Halifax Regional Centre for Education, and emergency service providers. This allows us to assist in coordinating infrastructure planning in response to unprecedented population growth in the municipality." [3]
Neighborhood Impact
Community concerns are another hurdle. These include the demolition of historic buildings, increased traffic, taller structures casting shadows, and overburdened municipal systems.
"Many of us feel like there's a pit in the centre of our stomach right now. This was such a sudden and major change, and I don't think that many Haligonians realize the impact." – Jennifer Szerb [2]
"The character of my neighbourhood is not defined by the size of my building, or even the architecture of the buildings, it's defined by the people who live in them. You can live in a single-family home, you can live in a tiny home, you can live in an apartment building, and you are a valuable member of our community." [5]
Cost of New Housing
Affordability remains a pressing issue, even with an increased housing supply. Recent figures show:
- Halifax lost 8,140 housing units priced under $1,000 per month between 2016 and 2021, a 25% drop [6].
- Property insurance costs for building owners have risen by 9% annually [6].
- Fixed-term leases have led to steep rent hikes.
"If you're looking for a low-income apartment or a low-rent apartment, they're almost impossible to find in Halifax." [6]
The impact on tenants is severe. For example, one tenant saw their rent jump from $754 to $1,525 per month after eviction through a fixed-term lease [6]. Although the province enforces a 5% rent cap for current tenants, rising costs are forcing property owners to adjust rents:
"Property insurance has increased on average nine per cent per year and the explosion in utility costs over the past years hit landlords as much as anyone else." – Ash Sabar [6]
Municipal staff are working on an affordable housing strategy that may include inclusionary zoning. However, doubts remain about whether market-driven approaches can effectively address affordability concerns. These challenges highlight the difficulty of balancing rapid development with accessible housing solutions.
Helio Urban Development Services
Helio Urban Development is stepping up to meet Halifax's urgent goal of building 52,000 housing units by 2027, aligning its construction services with the city's updated zoning reforms [2].
Fixed-Price Building Options
Helio offers straightforward pricing starting at $168 per square foot for new builds. Their pre-designed layouts are tailored to maximize rental potential within Halifax's updated zoning regulations.
| Property Type | Base Price | Key Features |
|---|---|---|
| Single-Family | $168/sq.ft | Standard finishes and essential systems |
| Duplex | $175/sq.ft | 3 bed/2.5 bath units, attached garages |
| Multi-Unit (4–8) | Custom Pricing | Investor-focused layouts, in-house trades |
Multi-Unit Construction
Thanks to Halifax's zoning changes, properties in ER-3 zones can now accommodate up to eight units on a single lot [2]. Helio specializes in multi-unit projects, offering pre-designed duplexes, triplexes, and fourplexes. These designs are ideal for increasing density around universities and transit hubs, contributing to the city's goal of creating more "missing middle housing."
Government Program Support
Helio also helps investors take advantage of government incentives, including Halifax's $79 million allocation from the Housing Accelerator Fund (HAF) [7]. Their support services include:
- Guidance on meeting eligibility for federal funding programs
- Ensuring alignment with Halifax's HAF Action Plan
- Assistance with adding new housing units
- Clarification of sustainability requirements
Summary and Outlook
Main Points
Halifax's zoning changes address a housing shortage of 20,000 units [3], marking a major shift in urban planning. The amendments focus on three core areas:
| Focus Area | Impact | Timeline |
|---|---|---|
| Density Increase | Up to 71,000 new units in the Regional Centre | |
| Transit Integration | Taller buildings along main transit routes | |
| Affordable Housing | 2,600 new units funded by HAF | Next 3 years |
These changes highlight the city's bold approach to tackling its housing challenges.
Future Housing Market
Halifax's housing market is set for major changes, driven by rapid population growth. The city has been expanding at an annual rate of 2% to 4.5%, with over 20,000 new residents added last year alone [3].
"We have to make decisions that we think are in the best interest of the city, but the years will tell us how we've done", said Mayor Mike Savage [8].
The HAF Action Plan aims to deliver 15,467 new housing units between 2023 and 2026 [1], supported by $79 million in federal funding [8]. If executed well, this plan could help alleviate the housing shortage.
Key factors for success include:
- Active involvement from developers in density projects
- Coordination with current infrastructure
- The market's ability to absorb the influx of new units
- Ensuring housing remains affordable as the city grows
Related Blog Posts
- Vacation Rental Laws in Halifax, Nova Scotia: Short-Term vs. Long-Term Investment Prospects
- Demographic Tides: Analyzing Youth Migration & Retirement Inflow in Nova Scotia’s Housing Market
- Comparing Rent Control Approaches Across HRM and Other Nova Scotia Towns
- Bridging Generational Demand: Millennials vs. Retirees in HRM’s Housing Market
