Charlottetown and the Province Record Similar Results

    CHARLOTTETOWN, June 6 /CNW/ - Results from Canada Mortgage and Housing
Corporation's 2007 Spring Rental Market Survey(1) revealed that the vacancy
rate for urban centres of the province was 5.7 per cent, while the rate for
Charlottetown was slightly lower at 5.3 per cent.
    "Higher levels of rental construction across the Island over the past few
years have resulted in increased vacancies" said Jason Beaton, Market Analyst
with CMHC in Prince Edward Island. The strong demand for housing, combined
with low interest rates in recent years did not go unnoticed by developers,
who took the opportunity to build new rental units. As a result, there has
been an above average level of multiple starts activity. This has lead to a
market where supply has temporarily outpaced the demand for new units. "This
trend is expected to be short lived though as the construction of rental units
has slowed significantly in the past six months, which will accelerate the
absorption of the newly completed units that are vacant" continued Beaton.
    The average two-bedroom rent in the Charlottetown area was $653. This was
slightly higher than the provincial average of $640.
    Canada Mortgage and Housing Corporation (CMHC) has been Canada's national
housing agency for more than 60 years. CMHC is committed to helping Canadians
access a wide choice of quality, affordable homes, while making vibrant,
healthy communities and cities a reality across the country.

    (1) CMHC's Rental Market Survey is now conducted twice a year in April
and October, to provide vacancy, availability and rent information on
privately initiated structures in all centres over 10,000 population across
Canada. Reports are released in June and December.
    The spring survey covers apartment and row structures containing at least
three rental units, and unlike the fall survey does not report information on:

    1. Smaller geographic zones within centres
    2. Secondary rental market (rented condominium apartments, single
       detached, semi-detached, duplexes or accessory apartments).

    In our analysis, we have avoided making comparisons between the results of
the April 2007 rental market survey and the October 2006 survey. A key reason
for this is that changes in rents, vacancy rates, and availability rates
between the spring and the fall may not be solely attributable to changes in
rental market conditions; they could also reflect seasonal factors. For
example, if more people tend to move in the spring than in the fall, it could
have an impact on vacancy and availability rates as well as the level of
rents. Alternatively, in centres where there are a significant number of
university students, vacancy and availability rates could be higher in the
spring if students move home for the summer.
    To the extent that these types of seasonal variations exist, comparing
results from the spring and fall Rental Market Surveys could lead to incorrect
conclusions about trends in rental market conditions. To avoid this, we have
limited our analysis to the results of our spring 2007 Rental Market Survey
and comparing these results for different centres across Canada. In spring
2008, when we have results from our second spring Rental Market Survey, we
will be able to extend our analysis to make year over year comparisons.

    Note: A table of vacancy rates, availability rates and rents is attached.

                       (Aussi disponible en français)

                          AND OVER IN MAJOR CENTRES

                                    Vacancy    Availability    Average Rent
                                       Rate            Rate     Two-Bedroom
                                         (%)             (%)             ($)

                                 April 2007      April 2007      April 2007
    Prince Edward Island                5.7             8.4             640
    Chalottetown CA                     5.3             8.5             653
    Summerside CA                       7.8             7.8             578

For further information:

For further information: Jason Beaton, Market Analyst, (506) 851-6047,

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