Cap rates by city / Halifax
Halifax cap rates in 2026
Apartment buildings in Halifax traded at cap rates of 4.5% to 5.5% in CBRE's second-quarter 2026 survey, in the middle of the 13 Canadian cities CBRE surveys. Here is what sits behind that number, what CMHC says about vacancy and rents, and what a building is worth at the local yield.
Apartment cap rate
4.5% to 5.5%
CBRE, Q2 2026, Class A to B
Vacancy rate
2.7%
CMHC, October 2025
Average two-bedroom rent
not published
CMHC summary did not publish
Rent growth, 2025
6.7%
CMHC, two-bedroom, year over year
Run a Halifax building through the calculator
Preloaded with a six-unit building at Halifax's CMHC average two-bedroom rent (estimated, CMHC did not publish the figure), the city's vacancy rate, and generic expense assumptions ($1,800 tax and $600 insurance per unit, 8% maintenance, 5% management, $900 utilities per unit). The price is set so the building lands at the middle of the local range. Replace every number with your own.
Property & income
The price you would actually pay, not the tax assessment
All units combined
Operating expenses (annual)
Of gross rent; 5% to 10% is typical
0 if self-managed
Condo fees, snow, lawn care
Your market
What similar properties trade at in this market
Cap rate
5.00%
$83,383 of net operating income (NOI) on a $1,668,000 price
Cap rate ignores financing on purpose. It is NOI divided by price, so two buyers with different mortgages can compare the same building. The value at your target cap rate is the price at which this NOI would hit that yield, which makes it a negotiating anchor.
What the same building is worth across the range
The six-unit example above produces $83,383 of net operating income a year. Value is NOI divided by cap rate, so a half-point move in the market's cap rate changes the price by more than most renovations would:
| Cap rate | Building value |
|---|---|
| 4.5%low end | $1,852,960 |
| 5%middle | $1,667,664 |
| 5.5%high end | $1,516,058 |
Per unit: $308,827 at the low end to $252,676 at the high end.
Why Halifax trades where it does
Halifax traded at much higher cap rates a decade ago. Population growth from interprovincial and international migration after 2020 produced the fastest rent growth in the country, and capital followed, compressing cap rates into the 4.5% to 5.5% range. The 5% cap on existing tenancies, in place since 2020, means landlords raise rent by the maximum every year and the gap between in-place and market rent keeps widening.
Vacancy, rents and the 2026 outlook
Vacancy edged up to 2.7% in October 2025 as migration slowed and record completions arrived, but two-bedroom rents still grew 6.7%, driven by landlords applying the full 5% cap plus turnover. The cap runs to the end of 2027; what replaces it is the biggest policy risk in the market. Underwrite 5% growth on existing tenancies through 2027 and nothing beyond.
Rent rules in Nova Scotia
Nova Scotia caps rent increases on existing tenancies at 5% per year until December 31, 2027, with four months' written notice. There is no cap on the rent for a new tenancy. That rule sets how fast in-place income can grow, which is why two buildings with identical rent rolls can trade at different cap rates depending on how far below market their tenants sit.
Cap rate against your mortgage rate
At a 5% cap rate, a mortgage costing more than 5% makes leverage work against you: every borrowed dollar earns less than it costs until rents grow. In Halifax that is roughly a wash at 2026 mortgage rates, so cash flow depends on the down payment and how far below market the rents sit. Put the same building through our rental property calculator to see the cash flow with the Canadian semi-annual mortgage formula.
Office, industrial and retail cap rates in Halifax
Apartments (multifamily, in CBRE's terms) are the tightest-priced asset in Halifax. The same survey puts downtown Class A office at 7% to 7.75%, Class A industrial at 6.25% to 7%, and neighbourhood retail at 6.25% to 7.25%. The spread over the 4.5% to 5.5% apartment range reflects leasing risk. A vacant apartment re-lets within weeks, while a vacant office floor can take years.
| Property type | Cap rate, Q2 2026 |
|---|---|
| Downtown office, Class A | 7% to 7.75% |
| Downtown office, Class B | 8% to 8.5% |
| Suburban office, Class A | 7% to 7.75% |
| Industrial, Class A | 6.25% to 7% |
| Industrial, Class B | 7% to 7.5% |
| Retail, regional mall | 7.25% to 8.25% |
| Retail, neighbourhood centre | 6.25% to 7.25% |
| Retail, strip | 6.25% to 7.25% |
CBRE Canadian Cap Rates & Investment Insights, Q2 2026 cap rate summary. Class A and B as defined by CBRE; regional, neighbourhood and strip are retail formats. Next refresh late October 2026.
Frequently asked questions
What is the average cap rate in Halifax?+
4.5% to 5.5% for apartment buildings in CBRE's Q2 2026 survey. Older buildings on the peninsula and in Dartmouth trade toward the high end; new purpose-built product near the low end.
How does Nova Scotia's rent cap affect Halifax investors?+
The 5% annual cap on existing tenancies, extended to December 31, 2027, is high enough that most landlords apply it in full every year, so income on a stabilized building grows 5% plus turnover. Because new tenancies are uncapped, buildings with high turnover reset to market faster. The unknown is what follows the cap in 2028.
Is Halifax still a good rental market in 2026?+
Rent growth of 6.7% and 2.7% vacancy are strong by any national comparison, but both are slowing from their 2022 to 2024 peaks, and non-residents of Nova Scotia now pay a 10% provincial deed transfer tax on purchase. Buy for income at a 5% or better cap rate rather than for continued rent growth at 2023 rates.
How Halifax compares
| City | Cap rate | Vacancy |
|---|---|---|
| Vancouver | 3.5% to 4.75% | 3.7% |
| Toronto | 3.85% to 5.15% | 3.0% |
| Montreal | 4.25% to 4.75% | 2.9% |
| Victoria | 4.25% to 5% | 3.3% |
| Winnipeg | 4.5% to 5.25% | 2.8% |
| London | 4% to 6% | 4.0% |
| Calgary | 4.5% to 5.5% | 5.0% |
| Halifax | 4.5% to 5.5% | 2.7% |
| Quebec City | 4.25% to 6% | 2.4% |
| Edmonton | 4.5% to 5.75% | 3.8% |
| Ottawa | 4.5% to 5.8% | 3.0% |
| Kitchener-Waterloo | 4.5% to 6% | 4.1% |
| Saskatoon | 5.25% to 6.75% | 3.3% |
Sources: CBRE Canadian Cap Rates & Investment Insights, Q2 2026 (cap rate summary, high-rise and low-rise Class A to B); CMHC Rental Market Report, October 2025 survey. Next refresh: CBRE Q3 figures in late October 2026, CMHC data in December 2026. Survey ranges describe stabilized, professionally managed buildings; individual sales print outside them. Measure your own deal with the cap rate calculator.