Key Takeaways:
- Nova Scotia has the worst affordability burden on renters among all Canadian provinces, according to the Residential Market Pressure Index by Turner Drake & Partners.
- The index assigns a score out of 100 to each province, with higher scores indicating greater "pressure" in the housing market.
- The index considers four factors: rental burden, ownership burden, supply pressure, and demand pressure.
- Nova Scotia tops the list for rental burden, but ranks second or third in overall scores, behind Ontario and British Columbia.
- Experts say that increasing non-market housing, such as non-profit or public housing, is crucial to addressing affordability challenges.
Introduction to the Residential Market Pressure Index
The Residential Market Pressure Index, developed by Turner Drake & Partners, is a new tool for measuring and comparing the state of housing markets across Canada. The index assigns a score out of 100 to every Canadian province and the nation as a whole, with higher scores indicating greater "pressure" in the housing market. The index considers four factors: rental burden, ownership burden, supply pressure, and demand pressure. According to the index, Nova Scotia has the worst affordability burden on renters among all Canadian provinces.
Methodology and Findings
The index is the brainchild of Jigme Choerab, manager of Turner Drake’s economic intelligence unit. Choerab wanted to create a single number that could summarize the market and allow for comparisons between different regions. The index is meant to diagnose problems, not prescribe solutions, and is intended to provide a comprehensive picture of the entire market. The initial public release of the index looked at the second quarter of 2025, which ranked Ontario first and Nova Scotia second in overall scores. However, when the index scores for the third quarter were released, British Columbia took the top spot, with Ontario second and Nova Scotia third. Despite the change in overall rankings, Nova Scotia remains at the top in the rental burden category.
Expert Insights and Reactions
Jigme Choerab noted that the index is not meant to provide solutions, but rather to highlight the challenges facing different regions. Academics and policymakers are better positioned to decide how to respond to the challenges highlighted by the index. Nova Scotia Housing Minister John White declined an interview request, but a spokesperson for the Department of Growth and Development stated that the findings were "of no surprise" and highlighted the government’s efforts to increase housing supply. Ren Thomas, an associate professor at Dalhousie University’s school of planning, said that the index’s findings validate the common understanding that people still struggle to afford rental housing, despite increased housing construction and an uptick in vacancy rates.
Implications and Solutions
Thomas noted that the proposition that more supply is the ultimate solution is being disproved, and that the type of housing being built matters greatly. Provinces with lower scores, such as Quebec and Newfoundland and Labrador, have accepted that non-market housing must play a bigger role in addressing affordability challenges. Nova Scotia has committed to building some additional public housing and has encouraged non-profits to build or buy rental housing, but Thomas noted that it may take many years for the non-market housing sector to grow enough to make a dent in the province’s affordability problem. Increasing non-market housing is crucial to addressing affordability challenges, and experts agree that a comprehensive approach is needed to address the complex issues facing the housing market.
Conclusion and Future Directions
The Residential Market Pressure Index provides a valuable tool for understanding the state of housing markets across Canada. By highlighting the challenges facing different regions, the index can inform policy decisions and guide efforts to address affordability challenges. As the index continues to be updated and refined, it will be important to monitor the progress of different regions and adjust strategies accordingly. Ultimately, addressing the affordability crisis will require a sustained effort and a commitment to increasing non-market housing and addressing the root causes of housing market pressure. By working together, policymakers, academics, and industry experts can help to create more affordable and sustainable housing options for all Canadians.