Atlantic Canada Quarterly Market Update: Residential, Rental, Industrial, and Office Trends in Q4 2024

Atlantic Canada, in the fourth quarter of 2024, experienced a strong residential sector with rising sales and a shrinking inventory. The industrial market, particularly in Halifax, saw a record year for new supply, while Moncton’s leasing activity remained stable. Office markets across the region displayed mixed trends.

Residential Summary for Q4 2024

A March Edge Realty Analytics indicated that Atlantic Canada’s residential housing market was strong, with increased sales and constrained supply.

Sales

Residential sales in Atlantic Canada surged by 15.1% both quarter-over-quarter and year-over-year, reflecting a robust demand environment.

Listings

New listings increased by 2.5% from Q3 2024 and 4.3% year-over-year, providing some relief to a tight housing market. However, active listings declined by 7.7% quarter-over-quarter and 3.0% year-over-year, indicating a continued inventory squeeze. The sales-to-new listings ratio improved from 66.7% in Q3 2024 to 70.9% in Q4 2024, highlighting strong buyer demand relative to new supply.

The months of inventory dropped from 4.7 in Q3 2024 to 4.0 in Q4 2024, reflecting a tightening market where homes are selling faster.

Prices

While specific price data was not provided, the decline in active listings and strong sales suggest upward price pressure across the region.

Under Construction

The number of units under construction fell by 1.9% from Q3 2024 but remained 13.3% higher than a year ago, signalling ongoing development activity despite recent slowdowns.

Economic Indicators

Atlantic Canada’s population grew by 0.3% quarter-over-quarter and 1.5% year-over-year, contributing to sustained housing demand. The unemployment rate ticked up slightly from 7.6% in Q3 2024 to 7.7% in Q4 2024, while mortgage arrears edged up to 0.28%.

Rental Market for Q4 2024

In Q4 2024, according to the CMHC’s Rental Market Report, Atlantic Canada’s rental market continued to show resilience despite modest month-over-month declines. In Halifax, for instance, average rents for a one-bedroom unit reached about $1,974 in November 2024—marking a slight 1.2% drop from October yet a robust 5.3% increase compared to November 2023. Two-bedroom apartments displayed similar trends, with minor monthly decreases but an 11.0% annual gain.

Industrial Market Overview for Q4 2024

Halifax, NS 

Halifax saw a fourth consecutive quarter of new industrial supply, with 309,055 sq. ft. delivered to market, according to CBRE. For 2024 overall, a record-breaking 1.2 million sq. ft. of new industrial space was introduced.

The availability rate increased to 7.9% in Q4 2024, but without the influx of new supply, it would stand at just 3.1%. Slowed pre-leasing contributed to rising availability, providing relief to a previously tight market. Net asking rents climbed by $0.50 quarter-over-quarter, reaching $12.52 per sq. ft.

Moncton, NB

In Moncton, the total industrial availability remained unchanged at 2.4% quarter-over-quarter. The Moncton submarket led leasing activity with 19,099 sq. ft. of positive net absorption, while the Caledonia and Dieppe submarkets recorded negative net absorption.

Overall net asking rents rose by $0.22 quarter-over-quarter to $9.88 per sq. ft.

Office Summary for Q4 2024

Halifax, NS

The CBRE reports that the Halifax office market recorded 145,432 sq. ft. of positive net absorption, making it one of the strongest quarters on record. Downtown Halifax outperformed the suburbs, absorbing a seven-year high of 104,871 sq. ft. Class A space led all asset classes with 232,690 sq. ft. of positive absorption in 2024.

Vacancy rates declined quarter-over-quarter to 12.3%, while net asking rates rose by $0.17 to $16.07 per sq. ft.

Moncton, NB

The total vacancy in Moncton increased to 16.8%. However, the downtown vacancy remained unchanged at 17.3%, while the suburban vacancy increased to 15.8%, contributing to the overall increase. The market also saw 8,376 sq. ft. of negative net absorption.

Net asking rates declined slightly, dropping $0.03 to $14.13 per sq. ft.

St. John’s, NL

Net rental rates declined for the first time in 2024, falling by $0.15 to $19.43 per sq. ft. The suburban submarket saw a larger drop, with rents decreasing by $0.22 to $15.45 per sq. ft.

Leasing activity improved, leading to 12,429 sq. ft. of positive net absorption. 

The vacancy rate declined to 20.2%; however, downtown vacancy improved to 27.8%, while suburban vacancy fell to 14.2%.