If you're looking to build 6–8 unit developments in Halifax, the best lots depend on zoning, approval processes, and infrastructure. Here's a quick breakdown:
- SHA Zone Lots: The easiest option. These lots allow by-right construction, skipping rezoning delays. Properties zoned ER-3 can support up to 8 units if size requirements are met, with fewer regulatory hurdles.
- Halifax Peninsula Lots: High demand and strong rental potential. Upcoming zoning changes (ER-3) permit up to 8 units with a 12-metre height limit. However, costs and heritage restrictions make these lots more complex.
- Eastern Passage/Cow Bay C-2 Lots: Affordable and spacious, ideal for mixed-use projects. These lots require navigating both residential and commercial codes but offer potential for larger units and stable rental income.
Key Factors to Consider:
- Zoning: ER-3 zoning simplifies approvals for 6–8 units.
- Approval Process: SHA Zones are faster; Peninsula and C-2 lots may involve more steps.
- Infrastructure: Established urban areas like the Peninsula have reliable water and sewer systems.
- Tenant Demographics: Peninsula attracts professionals; SHA Zones suit families; Eastern Passage is popular with working families needing parking.
Quick Tip: Take advantage of Halifax’s new zoning laws allowing 4-unit builds "as-of-right" in former single-family zones. These lots can often be upgraded to 6–8 units with proper planning.
HALIFAX Home Owners May Have Just Won THE LOTTERY : Halifax Proposed Zoning Changes January 2024
1. Halifax Peninsula Lots
The Halifax Peninsula offers exciting possibilities for 6–8 unit developments, thanks to upcoming zoning changes designed to encourage multi-unit housing.
Zoning and Approval Process
Currently, most lots on the Halifax Peninsula fall under R1 zoning, which only allows single-family homes. To pursue multi-unit projects, rezoning to R2 or higher is necessary.
However, Halifax is rolling out a new zoning framework that will replace single-family residential (ER-1) zones with ER-2 and ER-3 zones across the regional centre, including the Peninsula [1]. Under the new ER-3 zoning, developers can build up to eight units on a single lot, with a height cap of 12 metres. This change provides flexibility for various multi-unit designs [1]. It's all part of a broader municipal effort to add 15,000 new housing units within three years, backed by $79 million from the federal Housing Accelerator Fund [1].
These zoning updates pave the way for development opportunities, supported by the infrastructure advantages outlined below.
Lot Dimensions and Infrastructure
Once zoning is addressed, developers need to consider lot sizes and the availability of infrastructure.
Halifax Peninsula lots are well-positioned for increased density due to the presence of established urban systems, such as city water and wastewater services [1]. On top of that, the new zoning framework removes minimum parking requirements for developments in the regional centre, including the Peninsula [1]. This makes it easier to focus on maximizing living spaces without being constrained by parking space rules.
These factors, combined with existing infrastructure, make the Peninsula an attractive option for developers.
Access to Amenities and Market Appeal
The Peninsula's established urban environment supports strong demand for rental housing. Increasing density in central areas is not only practical for developers but also cost-effective for the city and its residents, as it leverages existing services and infrastructure [1]. This combination of convenience and cost savings makes the area highly appealing for multi-unit developments.
2. Suburban Housing Accelerator (SHA) Zone Lots
Building on the discussion about Peninsula lots, the SHA Zone provides an even faster and simpler path for multi-unit housing developments.
Zoning and Approval Made Simple
The SHA Zone allows for by-right construction, cutting out the delays associated with rezoning. This approach directly addresses common hurdles like fragmented construction agreements, speeding up project timelines and reducing regulatory headaches for qualifying developments [2][3]. Under the SHA framework, properties zoned as ER-3 can accommodate 3–8 residential units per lot, depending on the lot size [2][3]. In many urban core residential areas, this means up to eight units can be built on a single lot [4]. Once property owners meet the necessary criteria, they can dive straight into construction planning, skipping lengthy approval processes. From there, attention shifts to evaluating lot dimensions and design specifics.
Lot Dimensions and Requirements
To qualify for multi-unit development under the SHA Zone, lots must meet specific dimensional standards. These include setback, height, and other requirements that ensure compliance while allowing flexibility for multi-storey designs. This flexibility helps maximize the number of units, particularly for lots intended to support 6–8 unit projects [2][3].
Close to Services and Amenities
The SHA Zone encourages development in areas near local services and mixed-use spaces [2][3]. This proximity to amenities adds to the appeal of these projects, strengthening their value and practicality, as discussed in earlier sections.
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3. Eastern Passage/Cow Bay C-2 Zone Lots
Eastern Passage and Cow Bay, zoned as C-2 General Commercial, present opportunities for 6–8 unit developments. These areas provide a middle ground between urban convenience and suburban space.
Zoning and Development Simplicity
C-2 zoning allows for mixed-use developments that combine residential units with commercial spaces. Builders must navigate both commercial and residential building codes, requiring expertise in both areas. This integrated approach ensures a smoother process compared to dealing with separate construction requirements, which could lead to overlooked details.
Lot Sizes and Infrastructure
C-2 zoned lots in Eastern Passage and Cow Bay are generally larger, making them ideal for multi-unit projects. These lots often come with municipal water and sewer connections, although occasional upgrades might be needed.
The additional space opens up possibilities for various building layouts, such as townhouse-style units or designs with dedicated parking areas. This flexibility is particularly appealing for families or tenants who prioritize vehicle access - meeting a demand that smaller urban lots often can't accommodate.
Access to Amenities and Tenant Appeal
Located near Highway 207, Eastern Passage and Cow Bay offer an easy commute to Halifax while maintaining a suburban atmosphere. The area is well-served by local amenities, including shopping centres, schools, and recreational facilities, which are attractive to tenants looking for housing outside the city’s core.
The rental market here primarily attracts working families and individuals seeking affordable housing with parking. These tenants tend to prefer longer-term leases, offering property owners more stable income compared to the higher turnover often seen in student rental markets on the Peninsula.
For property owners, the trade-off of a slightly longer commute to downtown Halifax is offset by lower land costs and strong demand for rental housing. These factors make 6–8 unit developments in Eastern Passage and Cow Bay a promising investment option outside the urban core.
Pros and Cons
Halifax offers a variety of lot types for 6–8 unit projects, each with its own advantages and challenges. Choosing the right one depends on aligning opportunities with your investment goals.
| Factor | Halifax Peninsula | SHA Zone Lots | Eastern Passage/Cow Bay C-2 |
|---|---|---|---|
| Land Costs | Higher due to its prime urban location | Moderately priced and more accessible | Lower, providing a budget-friendly option |
| Approval Process | Longer, involving heritage reviews and community input | Streamlined with standard residential guidelines | Moderate, considering mixed-use factors |
| Construction Complexity | Higher due to heritage restrictions and detailed reviews | Moderate, following standard residential requirements | Elevated, balancing commercial and residential regulations |
| Rental Demand | Strong, driven by proximity to amenities | Steady, in family-oriented neighbourhoods | Consistent, with opportunities for mixed-use development |
| Tenant Demographics | Attracts students and young professionals | Appeals to families and professionals | Popular among working families |
| Parking Considerations | Limited parking often suffices in compact urban settings | Adequate parking availability | Higher parking needs can be addressed effectively |
The table highlights key differences, but let’s break down how these factors influence project feasibility.
Halifax Peninsula lots are ideal for those aiming to capitalize on premium rents. Modern 2-bedroom units here typically rent for $1,950–$2,100 per month. However, these lots come with higher land costs and heritage-related complexities, making a single-accountability construction approach essential to avoid cost overruns and delays.
SHA Zone lots offer a smoother path to project completion. With streamlined approval processes and fewer regulatory hurdles, these developments often stay on schedule. Traditional models can see cost overruns of 30–60%, so the predictability of SHA Zones is a major draw for investors seeking steady cash flow and minimized risks.
Eastern Passage and Cow Bay C-2 lots stand out for their affordability and potential for mixed-use development. These lots are well-suited for larger unit sizes and revenue diversification, but the dual commercial and residential regulations can be challenging. Developers with experience in multi-unit projects are better equipped to manage these complexities effectively.
Location is a critical factor across Halifax. Central areas like the Peninsula may offer higher rental income, but they also come with steeper development costs and stricter regulations. On the other hand, suburban lots provide cost advantages and attract different tenant demographics. Timely project completion is crucial, especially in high-demand areas where delays can cost as much as $8,800 per month in lost rental income. Opting for fixed-price construction with guaranteed timelines can help avoid the risks of fragmented construction methods and keep projects on track.
Ultimately, these trade-offs emphasize the importance of a carefully planned, integrated construction approach to navigate zoning challenges and maximize returns.
Conclusion
SHA Zone lots provide the easiest route for developing 6–8 unit properties in Halifax. They offer a smoother approval process, predictable timelines, and moderate land costs, striking a balance between profitability and project complexity. On the other hand, Halifax Peninsula lots cater to seasoned developers who can navigate heritage restrictions and higher expenses.
Eastern Passage and Cow Bay C-2 lots are ideal for those prioritizing affordability and mixed-use opportunities. These areas benefit from lower land costs and the potential for larger units. However, the mixed commercial-residential regulations demand careful planning to avoid delays that could lead to lost rental income.
Each type of lot presents unique benefits, and recent regulatory updates have further expanded these possibilities. Halifax's new zoning bylaws now permit a minimum of four residential units "as-of-right" in all residential zones that previously allowed single-family homes [5]. These changes emphasize the importance of choosing the appropriate zoning designations discussed earlier.
To maximize investment returns in Halifax’s evolving zoning environment, consider these steps:
- Look for lots in former R1 zones that now qualify for the four-unit "as-of-right" allowance.
- Assess these properties for potential upgrades to 6–8 units through development agreements.
- Opt for fixed-price construction contracts with guaranteed timelines to avoid the typical 30–60% cost overruns seen in traditional fragmented construction methods.
The recent upzoning could also increase property values for well-placed lots, particularly those near high-traffic areas [5]. Acting quickly on strategically located lots takes advantage of simplified regulations, reliable construction processes, and strong rental demand.
FAQs
Why are SHA Zone lots in Halifax ideal for building 6–8 unit rental properties?
SHA Zone lots in Halifax present a fantastic opportunity for developing 6–8 unit rental properties. Why? Because they come with zoning regulations that are far more accommodating and approval processes designed to be quicker and simpler.
These lots allow up to 8 units per property without enforcing parking minimums. This not only slashes development costs but also speeds up project timelines - two major wins for anyone in property development.
What’s more, the SHA Zone is tailored for multi-family and higher-density housing. This means navigating the requirements is far less of a headache compared to areas with stricter zoning rules. For property owners aiming to create profitable small-scale rental developments, SHA Zone lots make the process much smoother. It’s a smart choice for investors looking to boost returns while cutting through less bureaucracy.
How do Halifax's updated zoning rules impact the ability to build 6–8 unit rental properties on lots previously zoned for single-family homes?
Halifax has introduced new zoning updates, including adjustments to ER-3 zones, that now permit multi-unit buildings with 5–8 units on specific lots. On top of that, the updated rules allow up to four units per lot in all residential zones within serviced areas, streamlining the process for smaller multi-unit projects.
These changes present a great opportunity for property owners, particularly in areas covered by ER-3 zoning or where the four-unit cap has been eased. With these updates, property owners now have more flexibility to make the most of their lots and pursue multi-unit developments with greater ease.
What should I consider when planning mixed-use developments in Eastern Passage and Cow Bay’s C-2 zoning area?
When designing mixed-use developments in Eastern Passage and Cow Bay's C-2 zoning area, there are several key zoning rules and practical factors to keep in mind. The C-2 zone permits multi-unit buildings with up to 12 units, but these projects must align with specific regulations. For example, maximum building height is typically limited to 2–4 storeys at the street level, building length cannot exceed 35 metres above the streetwall, and developments must adhere to minimum yard setback requirements. While parking isn't usually mandated in this zone, ensuring proper access and functionality remains essential.
It's also important to address environmental factors. Some properties may include protected wetlands or experience drainage issues that need to be managed. Additionally, regional planning reviews can introduce new conditions or restrictions, potentially influencing the scope of future projects. To succeed, developers must carefully plan and thoroughly understand zoning rules to ensure compliance while optimizing the project's potential.
Related Blog Posts
- Halifax & Area Development Guide: Opportunities in Underserved Communities
- Halifax’s New Zoning Rules Explained: Up to Four Units on a Single Lot (What It Means for Builders)
- ER-3 (ER3) Builder Halifax: How Many Units Fit on a Typical Lot?Halifax Apartment Builder: 4–12 Units Without Rezoning
- Halifax Apartment Builder: Can I Build 4–8 Units on One City Lot?
