The building permit has been issued and work is starting on a five-storey apartment building at 2300 Gottingen St., says developer Ross Cantwell.

The 103-unit building will go up on the vacant lot across the road from the Halifax North Memorial Public Library and will offer retail space on the ground floor. Cantwell will hold an open house about the development Wednesday from 4 p.m. to 8 p.m. at the library.

He told CBC's Information Morning the area lacks good-quality rental properties.

Each apartment will have granite counter tops and come equipped with a washer and dryer. Studio apartments in the new building will cost about $795 a month. One-bedroom apartments will run you $1,000 while a two-bedroom costs $1,295 a month.

Originally non-profit housing was supposed to go up in the space, but the Creighton-Gerrish Development Association behind the project couldn't get its financing together so the land was sold off.

Fear of gentrification

Cantwell said the rental prices are reasonable and doesn't believe the cost will lead to more gentrification.

"There aren't any good quality options for them to move away from home," Cantwell said.

"Gentrification is supposedly forcing people out of their neighbourhood. Right now we have a situation where people are having to leave the neighbourhood because there isn't any quality rental housing in their neighbourhood."

Some people living in Halifax's north end have complained about the rising cost of housing in the area, and fear as more development comes in people with lower incomes will be forced out.

'New construction is expensive'

Cantwell says the rents in the new building are higher than existing rents because new construction is expensive, "but by adding new supply to the neighbourhood we're going to keep downward pressure on rental prices."

"The apartments are all rental. You don't need a $20,000 down payment for a condo or a credit score so you can qualify for a mortgage. This is going to be a very inclusive development and I think it's going to put positive energy back on the street. I think it's going to be quite transformational."