What is the average rent in PEI?

The average asking rent in PEI is approximately $1,300 for a 1-bedroom and $1,600 for a 2-bedroom. PEI rents have risen significantly since 2019 due to population growth outpacing supply in Charlottetown.

Does PEI have rent control?

Yes. PEI has rent control administered by the Island Regulatory and Appeals Commission (IRAC). The maximum allowable increase is published annually. PEI is unique in that IRAC sets rents for all rental units, including when a tenant moves out — there is no vacancy decontrol.

What is the vacancy rate in PEI?

The Charlottetown CMA vacancy rate has improved from extremely tight conditions (near 1%) to approximately 2.5–3.0% in 2025 as new supply came online.

Prince Edward Island Rental Market Data 2025–2026 | Average Rent & Vacancy Rates

PEI rental market data

Prince Edward Island’s rental market, centred in Charlottetown, has undergone significant change. The province’s rapid population growth — driven by immigration programs — placed intense pressure on a small rental stock, pushing vacancy rates to near-zero in some years.

Conditions have improved in 2025 as new construction added supply. PEI is unique in Canada for having rent regulation that applies even when a unit turns over — the Island Regulatory and Appeals Commission (IRAC) sets rents for all rental properties.

Data source: CMHC Rental Market Survey (October 2025), published December 2025. This is the most recent CMHC rental data available — the survey is conducted once per year every October. Next update expected December 2026.

Average rent (PEI)

City	2BR Purpose-Built (est.)	2BR Asking Rent	Vacancy Rate (est.)
Charlottetown	~$1,350	~$1,600	~2.8%

PEI asking rents average approximately $1,300 for a 1-bedroom and $1,600 for a 2-bedroom.

PEI rent control rules

PEI has the strictest rent control in Canada:

IRAC sets maximum rents — The Island Regulatory and Appeals Commission regulates all rent increases
No vacancy decontrol — Unlike every other province, PEI regulates rent even between tenancies. Landlords cannot freely raise rent when a unit turns over.
Annual percentage cap — IRAC publishes the maximum allowable increase each year (typically 0–3%)
Applies to all units — No exemptions for new construction
Appeals process — Landlords can apply for above-guideline increases to offset capital costs

This strict approach keeps in-place rents low but has been criticized for discouraging new rental development.

Key market drivers

Immigration: PEI’s Provincial Nominee Program has driven rapid population growth relative to the province’s small size, creating significant rental demand.

Tourism and seasonal employment: PEI’s seasonal economy creates fluctuating demand, with summer tourism driving up short-term rental demand.

UPEI and Holland College: Student populations support rental demand in Charlottetown.

Small market size: PEI’s rental universe is small compared to other provinces, meaning even modest population changes can significantly impact vacancy rates.

Canada Rental Market Data — national overview
Nova Scotia Rental Market — neighbouring Maritime province
New Brunswick Rental Market — neighbouring province
Average Rent in Canada — rent comparison by city and province
Income in Prince Edward Island — provincial income data

Sources

CMHC Rental Market Survey — Housing Market Information Portal
CMHC 2025 Rental Market Report — December 2025
IRAC — Island Regulatory and Appeals Commission — PEI rent regulation