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Home prices in PEI may not be as high as they are in other provinces, but they’ll still run you a few hundred thousand dollars. That’s a big payment to make, so you want to make sure you’re making a sound purchasing decision before signing on the dotted line. 

Let’s take a closer look at the average home price in PEI right now, as well as what you should do to make sure you’re spending within your means.

Average PEI House Prices 2024

In PEI, the average house price currently sits at $361,800 as of November 2023. That’s a 3.6% increase from the same time last year. 

However, PEI’s average house price is significantly lower than the nationwide average house price of $646,134. 

How Does The Average PEI House Price Compare To The Rest Of Canada?

Home Prices 2024 Year-Over-Year % Change
Prince Edward Island$361,8003.6%
Newfoundland and Labrador*$291,3004.0%
British Columbia$964,3716.6%
New Brunswick*$287,9007.1%
Nova Scotia*$390,0005.8%
Source: CREA Price Map (November 2023)
*based on MLS HPI benchmark prices

Can You Afford An Average Priced House In PEI?

When purchasing a home, one of the most important ratios to consider is your gross debt service (GDS) ratio and total debt service (TDS) ratio. Ensuring your debt and home costs do not exceed these ratios will help ensure you’re not spending too much on your home. 

Similarly, your mortgage lender will consider your GDS and TDS ratios to assess your ability to secure a mortgage and the loan amount that you may get approved for. 

  • Gross Debt Service (GDS) Ratio – This figure is a measure of your principal, interest, and taxes relative to your income. Your GDS should not be any more than 39%. 
  • Total Debt Service (TDS) Ratio – This figure is a measure of all of your debt — including debt related to housing — that you must pay every month relative to your income. Your TDS should not be any more than 42% – 45%.

Tips On Buying A Home In PEI

There are several factors to consider when buying a home in PEI, here are some to consider: 

Get Pre-Approved For A Mortgage

One of the first things you should do before you start your search for a new home is to get pre-approved for a mortgage. Based on the financial information you provide to the lender, you’ll be pre-approved for a certain loan amount. 

You can then use this figure to narrow down the properties that you visit so that they all fall within your budget. Having a dollar figure in mind when searching listings will help give you a clear idea of the maximum amount you can spend on a home purchase, which can help you avoid wasting time and frustration.

That said, you should avoid spending the maximum pre-approved amount as stipulated in your pre-approval letter. Instead, you should give yourself some wiggle room so you don’t put too much pressure on your finances to cover a big mortgage. 

Here’s a checklist of all the documents you’ll need to buy a house

Don’t Forget To Budget Other Home Costs

Aside from your mortgage payments, there are other costs that come with owning a home in PEI. Make sure that you not only have enough money in the pot to cover your mortgage payments, but that you also have plenty left over to cover these costs of homeownership.

  • Property taxes
  • Home insurance
  • Utilities
  • Maintenance 
  • Repairs
  • Condo fees

Check out the hidden costs of buying a house.

Compare Quotes To Get The Best Rate

Not only does the actual sale price of a home impact how much a buyer will spend when they purchase real estate, but so does the interest rate. The higher the rate, the more you will pay for your mortgage overall. That’s why it’s ideal to compare rates and secure a lower mortgage interest rate to save money over the life of your loan. 

What Factors Affect PEI House Prices?

There are several factors that impact how much a home will sell for at any given time, including the following:

The Type Of Market You’re In

When it comes to prices of homes — or any other type of product — it’s all about supply and demand. When supply is low and demand is high, the prices of homes will be higher. But when there’s plenty of supply to go around and not much demand from buyers, the prices of homes will be more sluggish.

A seller’s market is one in which housing inventory is very tight compared to the number of buyers on the prowl for a new home. More buyers looking for a home and few homes on the market will drive prices up. On the other hand, if there aren’t as many buyers actively searching for a home but there are plenty of homes on the market to go around, there isn’t enough demand to justify higher prices. 

The Labour Market

When unemployment is low and wages are high, people have more money to spend. In this case, more people are in a better position to be able to afford a home purchase, which can fuel more demand for homes and increase home prices. 

But when the job market is suffering, people will have less money to spend, especially on major purchases like real estate. In this situation, the demand isn’t as strong, which doesn’t justify an increase in home prices and keeps them lower.


When it comes to the value of real estate, location plays a crucial role. The location of a home is perhaps the most important thing that will influence the price that it can command. The exact same home in two different locations will fetch two different prices. 

Age And Condition Of The Home 

Homes that are newer and in better condition are considered more valuable than homes that are aging and in dire need of upgrading. As such, the price you pay for a home will be impacted in part by the age and condition of the property. 

Size Of The Home

A home with more square footage will generally be more expensive to build given all the extra materials and finishes required. As such, a larger home will command a higher price than a smaller home in the same neighbourhood.


Certain features are considered more desirable than others, and buyers may be more inclined to pay more for these traits. For instance, granite countertops in the kitchen and hardwood flooring throughout a home hold greater value than cheap linoleum counters and carpeting. As such, a home with higher-end features may be more expensive than a home with cheaper finishes.

Final Thoughts

The prices of homes in PEI are pretty affordable compared to other provinces, as well as Canada’s average. That said, you’re still dealing with a few hundred thousand dollars. Don’t start looking for a home to buy until you’ve taken some time to get familiar with the cost of homes in PEI, as well as in each city across the province. Make sure that your finances are in order so you have the certainty of knowing how much you can comfortably afford in a home purchase in PEI. 

House Prices In PEI FAQs

What is driving the increase in home prices in PEI?

The housing market in PEI is currently a seller’s market. This is evident as the demand and upward pressure on home prices continue. Many buyers are not only PEI residents but also newcomers and Canadians from other provinces.  Factors influencing the spike in demand for housing in PEI include housing shortages, increased demand, remote work, and much more.

How do interest rates affect house prices in PEI?

During times of high mortgage interest rates, affordability can suffer. As such, the demand for housing can weaken, as there will be fewer people who would be able to afford a home purchase based on inflated interest rates.  On the other hand, a low-interest rate can spark demand for housing, as it makes home-buying more affordable. In this case, the demand for housing can increase, which can also drive up prices.

How much house can you afford in PEI?

Your income will largely influence how much you can afford to pay in mortgage payments, but your current expenses will also play a key role. Whatever is leftover from your earnings after you’ve paid all of your expenses should be used to gauge how much you can afford to dedicate to mortgage payments. Typical monthly expenses can include utilities, groceries, credit card bills, car loans and other expenses. Add up all these expenses and deduct that figure from your monthly income to determine how much you can realistically dedicate to mortgage payments.
Lisa Rennie avatar on Loans Canada
Lisa Rennie

Lisa has been working as a personal finance writer for more than a decade, creating unique content that helps to educate Canadian consumers in the realms of real estate, mortgages, investing and financial health. For years, she held her real estate license in Toronto, Ontario before giving it up to pursue writing within this realm and related niches. Lisa is very serious about smart money management and helping others do the same.

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