Affordability crisis dominates Nova Scotia's election agenda

Parties unveil plans to address housing and affordability in response to voter concerns

Affordability crisis dominates Nova Scotia's election agenda

As Nova Scotia’s provincial election nears, the cost-of-living has emerged as the dominant issue, reshaping the campaign priorities of all major parties.

Rising rents, increased living costs, and a low rental vacancy rate have left many residents struggling, making the cost-of-living a top priority alongside healthcare. Political parties are now battling over how best to address the crisis ahead of the November 26 election.

“People’s ability to afford groceries and a place to live — that supersedes just about anything,” Jeffrey MacLeod, a Mount Saint Vincent University political science professor, told The Canadian Press.

He pointed out that the Progressive Conservatives (PCs), led by Premier Tim Houston, are currently leading in the polls. However, the affordability crisis has provided an opportunity for the opposition to challenge Houston’s record.

Affordability crisis in focus

The cost-of-living in Nova Scotia has reached levels comparable to major urban centres, with rents that now rival those in Toronto and Montreal.

“Nova Scotia has traditionally been a place where the cost-of-living was below that of other parts of the country. Now we have rents that rival Toronto and exceed Montreal,” noted Robert Huish, a political scientist at Dalhousie University.

According to the Affordable Housing Association of Nova Scotia, homelessness in Halifax has spiked, with 1,335 people currently experiencing homelessness compared to just 417 when Houston took office. Additionally, the provincial waitlist for public housing stands at around 7,020 households, with seniors making up half of that number.

The affordability crunch is also reflected in the latest data from the Canadian Centre for Policy Alternatives, which estimates that a living wage in Halifax is now $28.30 per hour, far above Nova Scotia’s current minimum wage of $15.20.

With a vacancy rate of approximately 1%, Huish noted, “affordability is going to be a huge thing” on the campaign trail.

Opposition party offers new proposals

Both the Liberals and the NDP have made affordability and housing the centrepiece of their campaigns. Liberal Leader Zach Churchill criticized Houston’s ambitious immigration targets, arguing that the PC government’s policy has overwhelmed the province’s housing and services infrastructure.

In the past fiscal year, Nova Scotia welcomed nearly 12,000 immigrants through its nominee program, exceeding the federal government’s target by over 4,000. Churchill emphasized that immigration needs to be done “in a responsible way” to ensure adequate resources for newcomers.

To help residents cope with the cost-of-living, the Liberals have proposed creating a rent bank, modelled on British Columbia’s program, which would offer renters no-interest loans if they fall behind on their bills.

The party also promised to reduce the harmonized sales tax (HST) by two percentage points, one point more than the PCs’ proposal, and to eliminate HST on groceries that aren’t currently tax-exempt, such as snack foods and rotisserie chickens.

The NDP, led by Claudia Chender, has promised to tackle the housing crisis by implementing a rent-control system, banning fixed-term rent leases, and reducing the rent cap to 2.5%. The party has also proposed using prefabricated housing to expand the public housing stock and increasing down-payment assistance loans for first-time homebuyers.

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MacLeod argued that the current housing shortage has been worsened by an over-reliance on the private sector, which has mainly produced high-cost units unaffordable for middle- and low-income residents.

“The governing Tories have overly relied on the private sector to build homes, leading to the creation of units that many middle- or low-income people can’t afford,” he said.

Houston defends record

Facing criticism, Houston pointed to existing measures his government has taken to ease the cost-of-living. These include a home heating rebate, social assistance indexed to inflation, and a one-point HST reduction. The PC platform also includes a promise to limit electricity rate increases so that they don’t exceed the national average.

Houston acknowledged the challenge of addressing the affordability crisis, adding that his government plans to raise the minimum wage to $16.50 per hour by next year if re-elected.

“We know there are certain things government can do. They can’t do everything,” Houston said.

While the opposition parties have rolled out ambitious plans, MacLeod emphasized that proven methods to lift people out of poverty involve increasing income assistance and wages to meet basic needs.

“Tax cuts don’t address that,” he argued.

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