A new report from the Canada Mortgage and Housing Corporation (CMHC) says Nova Scotia must more than double its annual housing starts over the next 10 years to restore affordability in the province. The target? Jump from about 5,400 homes per year to over 12,500 annually between 2025 and 2035.
That’s a big ask, and it’s going to take a full-court press from governments, developers, and the construction industry to make it happen.
Why Housing Starts Must Skyrocket
Housing prices in Nova Scotia haven’t come back down since the pandemic-era spike. The CMHC now defines affordability as home prices being no more than 30% of the average gross household income, or, at least, back to 2019 levels in less affordable regions.
The numbers don’t lie:
- The average home price in Nova Scotia is $511,000
- If construction increases as needed, prices could fall to under $406,000 by 2035
- Rents could drop by 6% compared to current projections
Failing to meet these goals could mean affordability continues to spiral out of reach, especially for renters, first-time buyers, and the middle class.
“We Need Everything Across the Board”
CMHC Deputy Chief Economist Aled ab Iorwerth says it clearly: “We need rental, we need homeownership, we need everything across the board.”
But hitting the target won’t be easy. Construction industry labour shortages are already delaying projects. And to scale up, builders may need to embrace new methods like prefabrication and modular housing to boost productivity.
Governments also have a role to play. Red tape, slow approvals, and outdated development processes need a serious overhaul if Nova Scotia is going to hit these stretch goals.
Not Just More Housing- The Right Kind of Housing
Affordable housing researcher Catherine Leviten-Reid points out that the type of housing being built is just as important as the volume.
She advocates for more non-market housing, homes developed and owned by governments or non-profits, which are not driven by profit and can offer lower, more stable rents.
“Why not tackle affordability by increasing supply specifically within the non-market sector?” she asks.
Leviten-Reid also recommends regulatory changes, such as vacancy control, to prevent landlords from hiking rents between tenants, which can wipe out affordability gains.
What’s at Stake?
Without a major boost in housing starts:
- Prices will remain high, pushing more people out of the market
- Rents will continue to rise, increasing cost-of-living pressure
- The gap between supply and demand will keep growing
But if Nova Scotia pulls this off, the result could be a healthier, more stable housing market, and a return to affordability for both low-income and middle-class Canadians.
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