Halifax Housing Starts Jump 32% Year-Over-Year: HRM Outpaces Canada’s Largest Markets in New Construction

Halifax Regional Municipality is powering through one of Canada’s most impressive housing construction booms in 2025, with new housing starts climbing 32% compared to last year—a growth rate that dwarfs the national average and leaves most major Canadian cities in the dust during a period marked by widespread supply constraints.

Halifax Construction Growth Exceeds National Average by Six Times

Canada’s housing starts have risen roughly 5% year-over-year through the first ten months of 2025, making Halifax’s 32% jump particularly remarkable. The Maritime capital has emerged as one of the country’s leading markets for new residential development, addressing housing supply challenges that continue to dominate policy conversations from coast to coast.

Across Nova Scotia, housing starts have increased approximately 26% year-to-date in 2025, with Halifax accounting for the lion’s share of provincial activity. While smaller communities and rural areas are experiencing moderate growth, the capital region’s construction surge stands out as the primary driver of Nova Scotia’s strong performance.

Comparing Halifax to Canada’s Traditional Real Estate Powerhouses

Halifax’s building boom presents a stark contrast to the struggles facing Canada’s traditionally dominant housing markets, where new supply has either stalled or declined:

Toronto’s Construction Crisis: Canada’s most populous city is tracking toward its lowest annual housing starts in three decades, with per-capita construction hitting levels not witnessed since 1996. For a metropolitan area still absorbing significant immigration-driven population growth, this represents a critical supply shortfall.

Vancouver’s Supply Stagnation: Although Vancouver posts occasional monthly spikes, the city’s year-to-date performance shows either flat or negative growth versus 2024, continuing a multi-year pattern of inadequate supply relative to housing demand.

Western Growth Stories: Calgary and Edmonton are posting near-record per-capita housing starts, with particularly strong activity in rental apartments and ground-oriented developments like townhomes. These Prairie cities join Halifax among 2025’s construction success stories.

Montréal’s Mixed Signals: Quebec’s largest market has achieved solid year-to-date growth powered mainly by rental construction. While individual months have registered 100%+ year-over-year increases, these eye-catching figures reflect the timing of major project launches rather than steady month-to-month expansion.

Ottawa’s Moderate Gains: The National Capital Region has recorded moderate-to-strong increases in 2025, with growth spread across both rental apartments and single-family construction.

Sustained Annual Growth vs. Short-Term Volatility

CMHC data highlights an important distinction between dramatic monthly fluctuations and sustained year-to-date momentum. Major urban centers like Montréal, Toronto, and Vancouver can experience month-over-month surges exceeding 100% when several large-scale projects break ground simultaneously. These spikes, while impressive on paper, don’t necessarily indicate strong full-year performance.

Halifax’s 32% year-over-year growth through October reflects consistent, broad-based construction activity rather than the timing effects of a few mega-projects. This sustained pace makes the Maritime city’s performance especially significant from a housing supply perspective.

CMHC’s Fall 2025 Housing Supply Report identifies Calgary, Edmonton, Montréal, Ottawa, and Halifax as operating at or near record construction levels relative to their populations. Conversely, Toronto and Vancouver are experiencing multi-decade lows in building activity when adjusted for demographic scale—a troubling reality for Canada’s two most expensive housing markets.

The Forces Behind Halifax’s Development Surge

Several key factors explain Halifax’s exceptional construction performance:

Rental Construction Leadership: Purpose-built rental apartments comprise the majority of Halifax’s new starts, responding to sustained demand from newcomers, post-secondary students, and local residents unable to enter the ownership market. Despite new supply additions, rental vacancy rates remain constrained, keeping developer interest strong.

Substantial Development Pipeline: More than 13,000 housing units are currently under construction across Halifax—a significant inventory that will feed into the market over approximately 18-24 months. This pipeline represents multiple years of project approvals now transitioning from paper to reality as builders capitalize on proven demand.

Development-Friendly Environment: Relative to Toronto and Vancouver, Halifax offers more efficient approval processes, lower construction costs, and more favorable project economics that allow developments to pencil out even at moderate rental rates or sale prices.

Implications for Halifax’s Real Estate Landscape

Halifax’s status as one of Canada’s fastest-growing construction markets—both provincially and nationally—carries important implications for various market participants:

For Homebuyers: After experiencing housing shortages and rapid price escalation, Halifax should see market pressures begin to moderate as thousands of new units complete over the next two years. Browse current Halifax properties to explore opportunities in communities like Dartmouth, Bedford, and Sackville.

For Home Sellers: The coming supply increase may shift market dynamics, though strong underlying demand should support property values. Understanding these trends is crucial for pricing strategy and timing decisions.

For Rental Market Participants: With rental-focused construction dominating new supply, Halifax’s apartment inventory will expand meaningfully, potentially reducing competition intensity and stabilizing rent growth after several years of sharp increases.

For the Regional Housing Market: As Toronto and Vancouver grapple with supply constraints pushing prices ever higher, Halifax’s construction momentum enhances the city’s appeal as a more affordable alternative for Canadians seeking growing urban centers with opportunity.

Market Balance Returning: Following pandemic-era volatility that saw Halifax prices appreciate faster than most Canadian markets, increased supply should facilitate a transition toward more balanced buyer-seller conditions.

Can Halifax Sustain This Construction Pace?

Whether Halifax maintains its 32% year-over-year construction growth depends on several interrelated factors:

• Demographic Trends: Ongoing immigration and interprovincial migration will determine whether demand can absorb the current development pipeline without creating oversupply conditions
• Economic Variables: Interest rate policy, construction input costs, and development financing availability all influence builder decisions about launching new projects
• Regulatory Framework: Municipal planning policies and approval timelines will affect whether Halifax preserves its relatively builder-friendly reputation compared to larger Canadian cities
• Absorption Rates: How quickly completed units lease or sell will signal whether current construction volumes align appropriately with actual market demand

For the present, Halifax represents a bright spot in Canada’s housing supply picture—generating substantial construction growth while the nation’s largest, most expensive markets struggle to deliver adequate housing for their populations. This positions HRM as both a positive outlier and a potential template for other mid-sized Canadian cities working to address housing challenges through supply expansion.

Navigating Halifax’s evolving construction boom requires local market expertise. Whether you’re looking to buy a home in Halifax, explore properties in Dartmouth, or understand investment opportunities across HRM, working with an experienced real estate professional helps you make informed decisions in this dynamic market.

Rob Lough brings 24 years of real estate experience to buyers, sellers, and investors across Halifax Regional Municipality, East Hants, and Truro. As Broker/Owner at Century 21 Optimum Realty, Rob combines deep local knowledge with a former Home Inspector’s eye for detail. Visit roblough.c21.ca to explore current listings and connect with Rob about your real estate goals.