October 20, 2016
International Migration is the Key to Charlottetown’s Housing Market
More than 5,000 international migrants have moved to PEI since January 2014. International migration is defined as the number of people moving across the provincial border to or from other countries. The majority of PEI’s newcomers have landed in Charlottetown. In the past, they have most commonly chosen rental housing.
The latest Housing Market Insight examines the impact of international migration on Charlottetown. Evidence indicates that there are more families moving to Charlottetown than new housing units being built. One sign is the decline in Charlottetown’s apartment vacancy rate. It peaked at 7.9 per cent in October 2013 and had dropped to 4.2 per cent as of October 2015.
The lower supply of rental housing is prompting some international migrants to make different housing choices. Some are bypassing the rental market, choosing homeownership instead. As a result, international migration has brought new life to Charlottetown’s resale market. This has lowered the supply of active listings.
International migration to PEI is not expected to slow down in the coming years. In fact, commitments made under the Atlantic Growth Strategy and the revised Provincial Nominee Program could lead to higher levels of international migration. Going forward, Charlottetown will need residential construction to grow in the near term to meet the housing needs of today’s and tomorrow’s Islanders.
Read the full report — Housing Market Insight, Prince Edward Island