Meghan Dewar finds the cost of living in Charlottetown manageable at present. She resides in a one-bedroom, all-inclusive apartment that fits her budget as a working professional. Despite this, after residing on Prince Edward Island for several years, Dewar believes housing affordability in the province is a significant issue. She pointed out that even her current apartment would have been financially out of reach during her past minimum-wage jobs.
A recent report supports Dewar’s concerns, indicating that renters earning minimum wage would have had to work approximately 75 hours monthly last year to afford a two-bedroom apartment on P.E.I. This report, analyzing data from the Canada Mortgage and Housing Corporation’s annual rental survey with insights from the Canadian Centre for Policy Alternatives (CCPA), assesses affordability in Charlottetown, Cornwall, and Stratford on P.E.I., specifically focusing on apartment buildings.
As per CCPA, the rental wage is the hourly wage required to afford rent while working a standard 40-hour week, assuming 30% of gross income is allocated to housing costs. David Macdonald, a senior economist at CCPA, mentioned that an hourly wage of $23 is necessary for a two-bedroom apartment and $19 for a one-bedroom apartment, figures exceeding the $16 minimum wage in P.E.I. in 2024.
Despite slight variations among the three municipalities, with Cornwall being slightly pricier, Stratford relatively cheaper, and Charlottetown falling in between, the disparities are not significant. Macdonald emphasized the importance of constructing more non-profit rental housing units to maintain affordability in the long term. These units aim to cover operational costs rather than maximize profits, potentially alleviating average rent costs and offering a sustainable solution to affordability challenges.
