"Missing middle" housing refers to ground-oriented, multi-unit homes that bridge the gap between single-family houses and high-rise apartments. These include duplexes, triplexes, fourplexes, rowhouses, and small low-rise apartment buildings. They are typically similar in scale to single homes, making them easier to integrate into existing neighborhoods while providing more housing units.
This type of housing has been "missing" from many markets in recent decades due to zoning that favored either single homes or large apartments, with little in between. In Nova Scotia, and especially in growing urban areas, missing middle housing is gaining attention as a key solution to the housing shortage.
Halifax Regional Municipality (HRM), which includes Halifax and Dartmouth, is experiencing record-breaking population growth. Halifax's population jumped by over 19,000 people in a single year (2022–2023), a 4.1% increase. This influx – driven by both immigration and migration from other provinces – has created intense demand for housing at all levels.
The housing supply hasn't kept up. Recent studies show Halifax already faces a significant housing shortfall, which could reach 31,000 units by 2027 and 35,000 by 2032 if current building trends continue. In other words, tens of thousands of new homes are needed within the next decade to meet demand. While high-rise apartments have been the dominant type of new construction, there is a growing recognition that duplexes, triplexes, and other "missing middle" homes are crucial to fill this gap.
Rental demand underscores the need for more of these small multi-unit homes. Halifax's vacancy rate remains extremely low, and rents continue to spike. The average rent in the city climbed about 18% in the last year, reaching roughly $2,373 per month.
Many renters are looking for alternatives to expensive single-family homes or high-rise condos – options like basement apartments, duplex units, or small multiplexes that offer relative affordability. Missing middle housing can provide family-sized units or more spacious rentals in established neighborhoods, which are in short supply.
It's not just Halifax. Fast-growing communities across Nova Scotia are also hungry for housing options. For example, East Hants – a rural-suburban region between Halifax and Truro – saw a 3.8% population jump in a single year, welcoming nearly 1,000 new residents from 2022 to 2023. This growth rate was the third-highest in the province, behind only HRM and Cape Breton. East Hants has issued almost 1,000 housing permits since 2020 to try to keep up, and similar trends can be seen in other towns on Nova Scotia's South Shore and Annapolis Valley.
Rapid population increases in towns like Kentville, Lunenburg, Bridgewater, and Chester are driving demand for more diverse housing. Young families, newly arrived Canadians, and retirees alike are seeking housing in smaller cities and towns, not just the Halifax metro. However, these areas historically have had mostly single-detached homes. As a result, there's a pent-up demand for duplexes, triplexes, townhouses, and other mid-density homes that offer a middle ground between a large house and an apartment unit.
Communities and local governments are recognizing that catering to this demand is crucial for economic growth. Without enough housing, some towns risk losing newcomers or jobs to larger cities.
The good news is that both provincial and municipal leaders are taking action to enable more missing middle development, which brings us to the recent zoning changes.
To address the housing crunch, Nova Scotia's governments have introduced policy changes that make it easier to build small multi-unit housing. Both at the municipal level (especially in HRM) and the provincial level, these changes remove old barriers and incentivize "gentle density" growth like duplexes and fourplexes.
Halifax Regional Municipality has made sweeping zoning reforms to open up established neighborhoods to missing middle housing. In late 2023, Halifax regional council voted to allow up to four units per lot as-of-right on any residential lot within the municipality's serviced urban areas. This means traditional single-family only zones are essentially gone – property owners can now build a duplex, triplex or fourplex without needing special re-zoning or lengthy approvals, as long as basic building standards are met. The move was part of a Housing Accelerator Fund initiative, and it aims to spur thousands of new homes by unlocking gentle density in existing communities.
Other by-law tweaks in Halifax complement this change. The city has eliminated minimum parking requirements for residential developments in the urban core, freeing up space and reducing costs for small projects. Halifax had already legalized secondary suites and backyard suites (often called basement apartments or granny flats) across the municipality back in 2020, allowing homeowners to add an extra unit to a house as-of-right. Now, with the new fourplex-per-lot rule, even more homeowners or small developers can create multiple rental units on a single property without red tape. These Halifax reforms recognize that gentle density solutions are critical – as city staff noted, "missing middle" homes have been the second-most common type of new housing added in recent years (after apartments), yet demand still far outstrips supply.
These reforms in Halifax make it dramatically easier for small-scale projects – like a rental fourplex on a formerly single-house lot – to move forward quickly. Early estimates suggest the changes could enable up to 2,600 new units to be built in the coming few years in the city and suburbs, many of them missing middle types.
The provincial government is also playing a strong role in accelerating missing middle housing development. In August 2024, Nova Scotia's Minister of Municipal Affairs issued new regulations under the HRM Charter to make housing supply a top priority in all planning decisions. This means Halifax's plans and bylaws must put more weight on housing needs than before. The provincial rules also require all municipalities in HRM to allow residential uses in most zones where appropriate (encouraging mixed-use development). By pushing Halifax to be flexible and pro-housing, the province is ensuring that "not in my backyard" sentiments don't derail the creation of duplexes and other small-scale projects.
Beyond Halifax, many towns and rural municipalities in Nova Scotia have embraced pro-growth changes, often supported by federal housing grants. In early 2024, the federal Housing Accelerator Fund announced agreements with several Nova Scotia municipalities to eliminate barriers and fast-track new homes. For example:
| Municipality | Key Changes |
|---|---|
| Kings County (Valley region) | Received funding to allow four units as-of-right in its towns and growth centers. It's also promoting alternative construction methods like modular and manufactured homes to speed up builds. |
| Town of Lunenburg | Working on policy changes to turn underused sites into housing. Lunenburg is streamlining development approvals and even offering municipal land for projects that include affordable units. |
| Municipality of Chester | Committed to increase density by enabling townhouses and multiplexes and reusing municipal land for affordable housing. Notably, Chester is developing pre-approved building plans for duplexes, triplexes, and fourplexes to provide builders and investors with ready-to-go designs. |
These initiatives show a clear trend: Nova Scotia is actively removing red tape for small multi-unit developments. Whether it's by-right fourplex zoning, pre-approved building plans, or removing old requirements (like excessive parking or strict unit mixes), the playing field is being leveled for small-scale builders. For investors eyeing duplex and triplex projects, the regulatory environment is far more welcoming than it was just a few years ago.
The combination of surging housing demand and new pro-density policies has created a prime opportunity for small investors and local builders in Nova Scotia. Missing middle projects – such as adding units to an existing property or constructing a new duplex/fourplex on a vacant lot – can be both financially rewarding and socially beneficial. Here's how investors can seize this opportunity and fill the housing gap profitably:
As noted, vacancy rates are extremely low and rents are at record highs in places like Halifax. By developing a duplex or fourplex, an investor can tap into a large pool of tenants eager for quality housing. All units can likely be rented out quickly, generating immediate cash flow. With Halifax's population growth and other towns expanding, this strong rental demand is expected to continue. In short, if you build it, renters will come – and pay top market rents.
The recent zoning changes mean that many small multi-unit projects no longer require lengthy approvals or political battles. If you want to convert a single home into a triplex or build a fourplex on a residential lot, you can often proceed "as-of-right" under the new rules. This greatly reduces the risk and uncertainty for an investor, compared to larger projects that might need rezoning or development agreements. Faster approvals also mean you can get to construction sooner and start earning returns faster.
While large developers focus on big apartment complexes, the missing middle space is a niche where small investors can compete. Building a few units on infill lots or small parcels is often below the radar of major builders. A savvy investor can become a specialist in duplex/fourplex development in their community, enjoying less competition for land deals and often a warmer reception from neighbors (since a fourplex blends into the neighborhood more easily than a 20-story tower). Moreover, introducing gentle density can earn goodwill as it's seen as helping ease the housing crunch without drastically altering community character.
One key to making these projects profitable is controlling construction costs. This is where partnering with a fixed-price builder can be a game-changer. Fixed-price construction means the builder agrees to deliver the project at a set cost, eliminating surprise overruns.
Some builders in Nova Scotia offer all-inclusive build packages for small multi-unit designs, complete with standardized floorplans and upfront pricing. For example, there are investor-focused builders advertising fixed build costs around $168 per square foot for duplex and fourplex projects.
Working with such a builder gives an investor a clear budget from day one, making it easier to secure financing and calculate returns. It also speeds up the process – no drawn-out bidding wars or design delays, since standard plans can come pre-optimized for high rental yield and fast approval.
From a profitability standpoint, constructing a fourplex can be more efficient than four separate houses. All four units can share one foundation, one roof, etc., so the cost per unit is lower. Infrastructure like land and utilities is used more efficiently. This means higher ROI per dollar invested when done right. Additionally, new builds have lower maintenance and energy costs, which can make them more attractive to renters and reduce ongoing expenses for the owner.
Consider a hypothetical example that is increasingly common in HRM: An investor purchases an older single-family home on a serviced lot in Dartmouth for redevelopment. Under the new rules, they replace it with a modern triplex, each unit having two bedrooms. By using a builder's pre-approved triplex plan, they skip a lengthy design phase and break ground quickly. Within a few months after completion, all three units are rented to young professionals and small families. The combined rent comfortably covers the investor's mortgage and expenses, and the property's appraised value has jumped thanks to the higher income it generates. This kind of success story is no longer the exception – it's attainable for those who leverage the current market conditions and policy supports.
For newcomers to development, navigating construction can be daunting. Fixed-price builders offer a turnkey solution: from permits to handing over the keys, they handle the details at a set price. Helio Urban Development, for instance, is a Nova Scotia builder specializing in investor-focused, fixed-price projects. They provide 1–8 unit designs (duplexes, triplexes, fourplexes, etc.) that are optimized for appraised value and rent potential, and they deliver these projects on a guaranteed budget and timeline. By partnering with such experienced builders, small investors can minimize cost overruns and avoid the stress of managing contractors themselves. The result is a smoother path to completing a profitable missing middle project.
Nova Scotia is in the midst of a housing transformation. Demand is high and pro-housing policies are in place, especially for the missing middle segment. This creates a unique window for investors and developers to step in and be part of the solution – while also securing solid returns. Duplexes, triplexes, and fourplexes can provide homes for families and individuals who need them, in communities they love, without waiting years for a high-rise to break ground.
If you've been considering developing a small multi-unit property in Halifax, Dartmouth or any of Nova Scotia's growing towns, now is the time to act. The rules are on your side, and the market fundamentals are strong. All it takes is the right plan and the right team.
Helio Urban Development is here to help turn these opportunities into reality. With our fixed-price, ROI-focused building model, we make it straightforward to go from concept to keys-in-hand on duplex, triplex, and fourplex projects. Our expertise in navigating Halifax's fast-track approvals and our library of optimized designs mean you can move quickly and confidently. We take pride in delivering quality homes that meet community needs and investor goals.
Contact Helio Urban Development to find out how we can partner on your next project and help you build profitably while creating homes for Nova Scotians. Let's fill the missing middle, together.
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