Charlottetown's rental vacancy rate declined this fall

Charlottetown's rental vacancy rate fell to 4.2 per cent in October of 2015, down from 5.9 per cent at the same time last year, according to data released by the Canada Mortgage Housing Corporation.

"The significant decline in Charlottetown's vacancy rate was impacted by the continuation of strong net international migration and a slowdown in the number of new units added to the rental universe," the report reads.

• P.E.I. renters will see no increase in 2016

• Charlottetown apartment dwellers can expect higher rents

• Many Charlottetown renters struggling with affordability

"People new to an area typically rent prior to making a home purchase decision, allowing them time to familiarize themselves with the neighbourhoods and local amenities."

Since 2008, 12,384 international immigrants have entered the province.

The overall vacancy decrease was driven largely by a lack of vacant units in downtown Charlottetown, where the rate fell to 4.3 per cent from 6.2 per cent in October 2014.

"Charlottetown is experiencing the added inflow of people within the older age cohorts who are moving into Charlottetown from other areas of the province," reads the report.

"These people are looking for lower maintenance housing options that are in close proximity to a variety of urban-based amenities and conveniences that are within walking distance or easy transportation routes."

This was the second consecutive annual decline in the city, which accounts for 85 per cent of the P.E.I.'s urban apartment rentals, bringing the overall vacancy rate back in line with its 10-year average. Charlottetown's apartment vacancy rate peaked at 7.9 per cent in 2013.

For the past six years, Charlottetown added nearly 180 rental units a year, mostly due to the addition of new rental stock. But in 2015, half of that increase was due to the return of existing rental units that had been temporarily taken off the market for renovations or repairs, meaning only 92 new rental units were added.

Vacancy rates rise in Summerside

Summerside's vacancy rate, however, climbed to 7.8 per cent from 3.1 per cent in October 2014. The city saw an increase of 45 apartments in the last year, bringing the total number of apartments to 878 units.

The highest vacancy rate in the country was recorded in Saint John, at 8.5 per cent. The lowest was in Victoria, B.C., at .6 per cent.

Average rents for a two-bedroom unit in P.E.I.'s urban centres stayed relatively stable in 2015, at $830 in Charlottetown and $734 in Summerside.

The Island Regulatory and Appeals Commission approved a 1.75-per-cent increase for heated premises and a one-per-cent-increase for unheated units in 2015. IRAC has decided no increases will be allowed in 2016.

Nationally, average rents for a two-bedroom ranged from a low of $1,065 in Quebec to a high of $1,754 in Toronto.

CMHC conducts a rental market survey every April and October to estimate the relative strengths in the rental market. The survey is doneon a sample basis in all urban areas with populations of 10,000 and more. The survey is conducted by a combination of telephone interviews and site visitsduring the first two weeks of April and October, and the results reflect market conditions at that time.