Is it Getting less Expensive to Buy or Rent in Halifax?

Years ago when I was attending a wedding in Virginia, I remember reading a newspaper article that it was cheaper to rent then to own in their area. A year later, their real estate market crashed. It soon became evident that there was more to the story but over the years I have reflected on market value tipping points as it relates to rents. 

In HRM, Nova Scotia, rents seem to be stabilizing at $700-$1200 per bedroom though any apartment less than $1500./mth is hard to find. So how does this compare to home ownership? 

One approach, on Zoocasa, using a price-to-rent ratio approach implies that 'a high price-to-rent ratio of 21 or more suggests that it is more expensive to buy rather then rent'. Conversely, 'under 16 suggests that it is less expensive to buy rather than rent'. Between 16-21 suggests it is 'still more favourable to rent... but depends on indivdual financial circumstances.'  The article, written by Mackenzie Scibetta, was published May 15, 2024 and it rated Halifax-Dartmouth at 12.9 for detached homes and 13.8 for condos. At time, out of the 21 cities compared, Halifax-Dartmouth had the lowest ratio for detached homes and was one the 7 lowest ratio cities for condos.  

Diving deeper, it's data incorrectly assumed a median detached home price at $401,279 (2024 Jan 1 - May 1 was actually $596,500 based on MLS data), a median condo price $429,900 ($435,000) and a median 2 bedroom rent at $2,600... a good example of check, re-check and than check again before making a decision based on online content.

It is also interesting to note that CMHC, widely considered to be the most reliable provider of housing data, also now includes a disclaimer 'Update to bedroom breakdown calculation in the Rental Market Survey universe... CMHC updated its Rental Market Survey methodology for 2025 to improve how rental units with unknown bedroom counts are classified... Previously, rental units without a known bedroom count were classified as 2-bedroom units... it began to skew the data as the actual mix of unit sizes changed over time... CMHC now estimates unknown bedroom count based on the typical bedroom distribution in the local area where the building is located. This change provides a more accurate and regionally representative picture of Canada’s rental housing market... Users should interpret changes in bedroom-specific counts with caution in 2025.'

All of this is to say, when assessing whether renting or owning is less expensive, the data is not always accurate. 

Realistically, owning a home valued at $550,000, we can conservatively assume $100./mth for insurance and $550./mth for property taxes totaling $650./mth minimum 

Next, adding 0.5% per year = $230./mth to cover maintenance, repairs and utility upgrades over a 25 year period brings the minimum total of $550,000 homeownership to $880./mth  

So far, assuming a cash purchase, home ownership is substantially cheaper.  

Next... the mortgage...

As of Jan 13, 2026, between Halifax, Spryfield, Dartmouth and Bedford there are 209 single family homes listed of which 30 are listed under $550,000 of which 20 are detached homes (approx. 10%) 

At mortgage rates of 4%, 5 yr fixed, amt 25 yrs and (5%) per $100,000...

$100,000 = $526.02/mth P.I. ($581.60)

$200,000 = $1,052.04/mth P.I. ($1,163.21)

$300,000 = $1,578.06/mth P.I. ($1,744.81)

$400,000 = $2,104.08/mth P.I. ($2,326.42)

$500,000 = $2,630.10/mth P.I. ($2908.02)

Assuming a monthly payment of $2,630.10 - $2,908.02 for a $500,000 5 year fixed mortgage at 4% & 5%, amt 25 yrs plus a conservative $880./mth for property taxes, insurance and maintenance, owning a home could cost at least $3510. - $3788./mth. Again, for the moment, renting appears to be cheaper...

But here is where it gets interesting. Over the lifetime of a $500,000 mortgage at 5% you will have paid $372,409 in interest payments totaling $872,409 in payments over the 25 year period. Divided by 25 years = $34,896.36/year. Divided by 12 months = $2908.03/mth. Now it appears to be more in line with the current rents, however, it doesn't account for any potential return on your invested dollars. Without compounding, at a low 2% ($11,000) per year avg  increase in your property value = $11,000/yr x 25 years = $275,000. Adding the conservative profit to the original $550,000 purchase price = $825,000 divided by 25 years = $33,000/yr divided by 12 = $2750/mth. Again, more in line with current rental values but... at the end of 25 years, you own $825,000 in equity.  

Interesting to note that by running the same numbers at $1,000,000 @ 5% = $5816.05/mth... close to the current rental rate of luxury apartments.  

Risks of homeownership include unexpected life events (i.e. no income) unexpected maintenance items (i.e. cash flow challenges) and unexpected compromised affordability thresholds (i.e. increased mortgage, property tax and insurance rates)  

Risks of renting...no equity stake, lifestyle freedom unpredictable  

Benefits of renting... minimal responsibility, more predictable cash flow and expenses

Benefits of homeownership... equity builder, cashable asset, security and lifestyle freedom 

Last but not least, the AI generated response copied into the summary to 'buy or rent? is generally right! And when I ask it 'is it better to buy or rent in Halifax, Nova Scotia' the response is 'though high rents and fixed-term leases add stress to renting... buying is appealing if you plan to stay 8-10+ years and can manage initial expenses, especially with market shifts showing more realistic pricing in some areas.' 

Next month... who's renting?... who's selling?... the 70+ age group demographic shift...

~ Red Door Realty Agent/Associate Broker Michele Vyge-Fraser