IPOANS Sponsored Research

Residential rental apartments continue to shoulder a larger and larger share of the tax burden in the Halifax Regional Municipality. As shown in the above chart, unitised assessment values have risen at a consistent rate since 2008 outpacing most other asset classes, especially since 2016. From then to 2021, the average assessed value per apartment unit rose 35%, outpacing industrial (6%), office (8%), and retail (-1%) properties. Hotels experienced a similar increase over the same period, but remain far below the trend in apartments over the long term. Generally, multiunit residential rental properties transact more frequently than other types of commercial real estate, providing the Property Valuation Services Corporation (PVSC) with readily available information from which to justify increases to property values. Further, because assessment values reflect the property as it existed at the start of the prior year, current trends do not yet reflect the full impact resulting from the 2% rental increase limit instituted by the Province in fall of 2020.

Between 2016 and 2022, the average assessed value per apartment unit rose from about $94,158 to $134,544 – an increase of 43%. On average, per unit values rose 6.1% annually, with a 6.2% increase occurring between 2021 and 2022.

To view the full report: Click Here