Residential Construction Set to Grow Off of International Migration

CHARLOTTETOWN, PRINCE EDWARD ISLAND--(Marketwired - Oct. 20, 2016) - Canada Mortgage and Housing Corporation (CMHC) released its Housing Market Insight (HMI) report today, on the impact of international migration on Charlottetown's housing market.

Prince Edward Island (PE) has been the only province in Atlantic Canada to report continuous population growth in the past decade, with an average of 1,560 international migrants moving to the Island each year. International migration has been driving population growth in the province, with Charlottetown being the preferred area for new international migrants. While rental housing has traditionally been the preferred choice of newcomers, international migrants are now making different housing choices, prompting record level MLS^® sales in 2016 and demand for new residential construction.

Report Highlights

• International migration has boosted the population of PE for the last ten years but has also coincided with rising out-migration;
• Housing demand has grown quickly as more international migrants are moving to and staying on the Island;
• Rising levels of international migration and a slow expansion of the stock of rental housing has led some newcomers to choose other housing options, such as the resale market; and
• Charlottetown will need residential construction to grow in the near term to meet this growing demand.

International migration greatly influenced the pace of construction for rental apartment units in Charlottetown over the years. However, the cancellation of the Provincial Nominee Program in 2011 saw migration levels fall and outmigration rise, and subsequently led to a significant rise in the vacancy rate in 2013. While migration quickly returned to PE with the introduction of the revised Provincial Nominee Program in 2014, it has not been met with the same increase in construction activity as previously. Newcomers are now looking at the resale market, and even beyond Charlottetown, because of an insufficient supply of houses in the area.

This release includes video.

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QUOTES

"International migration is the key driver of housing demand in Charlottetown. It has lowered vacancy rates, and brought new life to the resale market. Commitments made under the Atlantic Growth Strategy suggest that international migration will not slow over the coming years. As such, Charlottetown will need more residential construction to meet this growing demand."

- Sarena Teakles, Market Analyst, Canada Mortgage and Housing Corporation.