New Tariffs and Soaring Costs: What’s Next for Nova Scotia’s Housing Market?

If you’re thinking about buying, selling, or investing in real estate in Halifax or Nova Scotia, you’ve probably noticed one thing: costs are rising, fast.

From construction materials to development fees, to housing supply shortages, a perfect storm of economic pressures is making homes more expensive to build and buy. The biggest driver right now? New tariffs on construction materials—and the retaliatory counter-tariffs that could make things even worse.

Let’s break down what’s happening, how it affects home prices, and what you should do about it.

1. The Tariffs That Are Reshaping Home Prices

A wave of new trade tariffs is hitting Canadian construction materials, driving up costs for builders, developers, and homebuyers. The biggest ones affecting Nova Scotia?

Softwood Lumber Tariffs – The U.S. just increased duties on Canadian softwood lumber to nearly 40%, making framing and structural materials far more expensive.
Steel & Aluminum Tariffs – Import duties on these core building materials mean costs are rising for everything from structural beams to nails and screws.
Estimated Home Cost Impact – These tariffs alone could add $7,500 to $10,000 per new home.

📈 Bottom Line: These tariffs directly raise the price of building a home, which means developers pass higher costs onto buyers and renters.

2. Development Fees in Halifax Have Exploded by 217%

If the tariffs weren’t enough, Halifax has seen one of the most shocking increases in development fees across Canada. The CHBA National Municipal Benchmarking Study found that:

Since 2022, Halifax’s development fees have risen by $20,900 per unit—an increase of 217%.
Current development fees for low-rise homes in Halifax now sit at $30,500 per unit, while high-rise fees are around $8,000 per unit.

🚨 Why This Matters: These fees discourage developers from building, leading to a supply crunch—which makes existing homes even more expensive.

3. Housing Starts Are Slowing – And That’s a Big Problem

The CHBA report warns that Canada is on track to build fewer homes per new resident than at any time since 1972.

In Nova Scotia, this trend is especially alarming because:

The population is growing rapidly, increasing demand for housing.
New construction is slowing due to rising costs and economic uncertainty.
Developers are hesitating, worried about profitability with high tariffs and fees.

💡 The Result? Expect fewer homes, higher competition, and rising prices—whether you’re buying, renting, or investing.

4. Nova Scotia’s Counter-Tariffs: Are They Helping or Hurting?

In response to the U.S. tariffs, Canada and Nova Scotia have launched counter-tariffs—but these could make things even more expensive:

Higher tolls on U.S. commercial trucks entering Nova Scotia via the Cobequid Pass.
Bans on certain U.S. goods, including alcohol, increasing prices at local retailers.
Restrictions on U.S. companies bidding on Nova Scotia projects, which could limit construction options.

📉 What This Means: While these moves punish U.S. trade actions, they may also drive up costs locally, especially for materials that we still import.

5. What Homebuyers, Developers, and Investors Should Do Next

📍 For Homebuyers:
✔ Buy Sooner Rather Than Later – Prices are rising, and delays in housing supply won’t help affordability.
✔ Look for Builder Incentives – Some builders are offering locked-in pricing or pre-tariff deals to attract buyers.
✔ Consider Multi-Unit Homes – Duplexes and townhomes offer lower per-unit costs, which could help offset rising fees.

🏗 For Developers & Builders:
✔ Diversify Material Suppliers – Look into sourcing materials from non-U.S. countries or domestic alternatives.
✔ Advocate for Policy Changes – Industry groups like CHBA are pushing back against excessive development fees—get involved.
✔ Focus on High-Demand Segments – With costs rising, focus on mid-market and multi-family developments, where demand remains strong.

💰 For Investors:
✔ Expect Higher Rents – With fewer homes being built, demand for rentals will stay strong, driving up rental income.
✔ Target Growth Markets – Areas with strong population growth (like Halifax’s suburbs) will see the biggest price jumps.
✔ Plan for Higher Carrying Costs – Factor in higher materials, taxes, and insurance costs when running proformas.

Final Thoughts: The Market is Changing—Are You Ready?

Nova Scotia’s real estate market is shifting fast, with tariffs, development fees, and supply chain issues combining to drive costs higher. Whether you’re buying, selling, or investing, understanding these trends is critical to making smart decisions.

At Chisholm Group, we help our clients navigate market changes, identify opportunities, and secure the best deals in Halifax and beyond.

📩 Contact us today to discuss your real estate plans and get expert guidance.