Prince Edward Island is facing one of the toughest rental markets in the country. In Charlottetown, more than half of households are renters, compared to only about a third across the province. At the same time, vacancy rates remain stuck below one percent. In practice, that means that for every 100 rental units, fewer than one is available. With so few options, rents are climbing fast, and tenants have little bargaining power.
The Residential Tenancy Act, introduced in December 2022, was meant to bring balance to this market. It set out rules for rent increases, evictions, and dispute resolution, while recognizing that housing is not just another commodity but a basic human need. But only two years later, the government is proposing amendments that tilt that balance sharply back in favour of landlords.
In August 2024, the province released a consultation paper, Proposed Amendments – Residential Tenancy Act – ALL v15, outlining changes to rent controls, evictions, and dispute resolution. Islanders were invited to respond online, and in-person sessions took place in Summerside on Sept. 2 and Charlottetown on Sept. 3, 2025. With consultations now closed, the government is expected to bring forward legislation in the months ahead. That means tenants and allies have a narrowing window to make their concerns heard before these proposals become law.
Why BIPOC Communities Are at Greater Risk
For racialized and newcomer households, the stakes are even higher. On PEI, newcomers make up almost eight percent of the population and are far more likely to rent than own. Barriers like lack of Canadian credit history, precarious jobs, and ineligibility for mortgages keep homeownership out of reach. Many racialized families also face intergenerational wealth gaps: unlike many white households, they are less likely to inherit property or financial support.
These inequities are compounded by gender, disability, immigration status, and family size. A single mother of colour juggling part-time jobs not only earns less but is more vulnerable to landlord discrimination and cannot easily relocate if forced out. Indigenous tenants face particular risks due to systemic exclusion from land ownership and ongoing housing shortages in their communities.
Research confirms these disparities. A 2022 study found that 13 percent of Black and 12 percent of Indigenous respondents in Canada had experienced eviction in their lifetime; rates well above the general population. When legal protections weaken, those already at risk are the first to feel the consequences.
What would the Amendments Do?
Rent Increases Above the Guideline
Currently, annual rent hikes are capped at around three percent unless landlords apply for an exception. The amendments would expand those exceptions, allowing increases of up to 10 percent above the guideline in low-vacancy markets and up to 20 percent after renovations. These increases could also be applied immediately to new tenants when a unit turns over.
For a $1,000/month apartment, this could mean the difference between paying $1,092 after three years under the current system versus $1,331 under the new rules; nearly $3,000 more per year. For families already stretched thin, that is the grocery budget or childcare allowance gone. For BIPOC tenants, who on average earn less and face systemic barriers, this functions as economic eviction.
Easier Evictions for Personal Use and Renovations
The amendments also make it easier for landlords to evict tenants if they or a family member want the unit, or if renovations are planned. Notice periods would be set at just 60 days, and compensation would be restricted: only tenants who have lived in a unit beyond a certain number of years would qualify, and landlords would be allowed to offer a different unit in lieu of compensation; even if that replacement is not comparable in size, affordability, or location.
Other provinces require more time and compensation. Ontario mandates 60 to 120 days, while B.C. requires four months’ notice plus an extra month’s rent. PEI’s proposals would leave tenants with some of the weakest protections in the country.
For BIPOC tenants, eviction doesn’t just mean moving. It can mean losing access to childcare, workplaces, cultural centres, or ethnic grocery stores that anchor community life. Displacement cuts people off from vital supports and pushes many out of their communities altogether.
Dispute Resolution Tilted Toward Landlords
Under the current Residential Tenancy Act, tenants and landlords have a clear process for disputes. Applications to the Director must be made within six months of termination (s.75). The Director is required to share all evidence with both parties (s.76), ensuring transparency, and final decisions can be appealed; first through the Island Regulatory and Appeals Commission (IRAC), then on legal grounds to the Court of Appeal (s.89).
The proposed amendments weaken these safeguards. They give the Director broad power to dismiss tenant applications as “frivolous or vexatious,” allow landlords to rely on confidential financial records in rent increase applications that tenants cannot review, and expand the use of ex parte orders; decisions made without notice to one party in cases deemed “urgent.”
While landlords would gain stronger enforcement tools, including penalties up to $10,000 and expanded inspection powers, tenants would face higher barriers to bringing complaints forward. The risk of dismissal or fines will deter many from filing at all, leaving unsafe conditions and discrimination unchallenged.
Housing as a Human Right, Not Just a Market Commodity
The PEI government has defended its proposed amendments by arguing they will “make the market more attractive to landlords and investors.” The assumption is that if landlord profits are protected, more units will come on the market, and tenants will benefit from increased supply.
But experience elsewhere in Canada tells a different story. In Toronto and Vancouver, rental construction has reached historic highs, yet rents have continued to climb. Urbanation reported that in Toronto, even after a 173 percent surge in new rental completions in early 2025, the average one-bedroom still cost over $2,500; far beyond what most tenants can afford. Similarly, CMHC data shows that while national vacancy rates rose slightly in 2024 due to supply growth, average rents still jumped by eight percent year-over-year. These outcomes show that building more supply doesn’t guarantee affordability when units are priced to maximize profit.
A human rights framework provides a different lens. Under Article 11(1) of the International Covenant on Economic, Social and Cultural Rights (ICESCR), which Canada ratified in 1976, governments have an obligation to ensure “the right of everyone to an adequate standard of living… including adequate food, clothing and housing.” In its General Comment No. 4, the UN Committee clarified that adequate housing means more than a roof overhead: it requires security of tenure, affordability, accessibility, and cultural adequacy.
This obligation is not abstract. In 2019, Canada passed the National Housing Strategy Act, which recognizes housing as a fundamental human right and commits all levels of government to advancing the progressive realization of that right. PEI is therefore bound not only by international law but also by its own federal policy commitments to prioritize tenant security and affordability over investor confidence.
The UN Special Rapporteur on the right to housing has repeatedly warned against treating housing as a commodity, arguing that “when housing is primarily a means of accumulating wealth, the human right to housing is eroded.” PEI’s proposed amendments lean heavily in this direction; expanding landlord profits at the expense of tenant security.
For BIPOC and newcomer tenants, this is not a neutral shift. Disparate impact is itself a form of discrimination: rules that may appear even-handed; like easier eviction processes or higher rent increase thresholds; disproportionately harm those already facing systemic barriers such as wage gaps, lack of generational wealth, language access, or immigration precarity. This directly engages protections under the PEI Human Rights Act, which prohibits discrimination in housing on the basis of race, ethnicity, national origin, family status, source of income, and disability.
Policy Recommendations
To ensure fairness and protect vulnerable communities, the following changes are urgently needed:
1.- Strengthen notice periods: Evictions for personal use or renovations should require at least 90 days’ notice, in line with practices elsewhere.
2.- Limit above-guideline rent increases: Stricter criteria should apply before landlords can raise rents beyond the guideline, preventing abuse.
3.- Enhance transparency: Landlords must disclose detailed financial evidence when applying for rent increases so tenants can fairly challenge them.
4.- Equity impact assessments: Before passing amendments, the province should be required to evaluate their impact on marginalized communities, including BIPOC and newcomer tenants.
How to Take Action
These amendments are still under consultation, which means tenants and allies have a chance to shape the outcome. Here’s how you can get involved:
1.- Contact your MLA: Call or write to your Member of the Legislative Assembly and share your concerns. Remind them that housing is a human right and that these changes will hit marginalized communities the hardest.
2.- Submit feedback: The government has opened a consultation process. Tenants, advocates, and community members can send written submissions before the amendments move to debate.
3.- Stay informed: Connect with settlement agencies, legal aid, or BIPOC USHR for resources on tenant rights and upcoming advocacy opportunities.
4.- Build community power: Join workshops, petitions, or campaigns that push for fair housing. Collective voices carry more weight.
These amendments are not minor technical fixes; they are a turning point. In a market where fewer than one unit in a hundred is available, loosening protections will not create affordability, but it can deepen inequality.
For BIPOC and newcomer communities, these changes are not minor technicalities but questions of daily survival. Housing policy will determine whether families can remain in their homes, connected to their communities, and secure in their rights. The question is whether PEI’s tenancy system will evolve to protect all Islanders, or whether inequities will be allowed to deepen.