• Average home prices would need to fall $47,000 – 14% of the 2021 value – to make it affordable for a typical young person to carry a mortgage that covers 80% of the value of an average-priced home at current interest rates.
• Or typical full-time earnings would need to increase to $54,000/year – 16% higher than current levels.
• It takes 10 years of full-time work for the typical young person to save a 20% down payment on an average priced home – 7 more years than when today’s aging population started out as young people.
• For those locked out of home ownership, the average rent for a 2-bedroom unit in PEI in 2021 was $12,660/year, compared to closer to $9,097/year in 1981.

The numbers in Figure 32 illustrate the gap between average home prices in Prince Edward Island and what is considered affordable for typical residents between the ages of 25 and 34, based on their average earnings. As a province with a small share of Canada’s population, PEI has “relatively” affordable housing – an economic asset that is worth cherishing and protecting. But the trend since 2017 is worrisome.