Here's what a starter home looks like on P.E.I. — and why it's so hard to get one

It took Samantha Branstrom and her partner three years to break into the P.E.I. real estate market. 

And they consider themselves among the lucky ones. 

"I would say it's 100 per cent being in the right place at the right time," said Branstrom. 

She and her boyfriend both have full-time jobs and looked at about a dozen houses before buying their first — a home in Brackley, about nine kilometres north of Charlottetown, for $315,000. 

According to the P.E.I. Real Estate Association, that's roughly the average price first-time buyers on P.E.I. can expect to pay these days. 

Association president James Marjerrison said starter homes on the Island in 2023 generally range from $300,000 to $350,000. 

"Certainly, if you get something for under 300, that's even better, but most first-time homebuyers are budgeting within that range," he said. 

P.E.I. real estate agent Thamara Paparoni said what's considered a starter home has "changed drastically" in the eight years she's been in the business. When she started in 2015, she said her clients were looking for properties under $200,000 — and at the time, there were plenty in that range. 

In today's market? Think again.

"Right now if you're looking for $200,000, unfortunately you're not going to find very much," said Paparoni. 

So what kind of money do you need to buy a starter home on P.E.I. right now?

Mortgage broker Christine Milley said if you want to get approved for a $350,000 mortgage, you will probably have to make a household income of about $90,000 before taxes — assuming you don't have significant debt. 

Here's the problem: Many households on P.E.I. make much less than that $90,000. The price of housing has greatly outpaced the average household income. 

According to the P.E.I. Real Estate Association, the benchmark house price on P.E.I. in 2013 was $150,025 — rising to $298,600 by 2021. In contrast, Statistics Canada said the median household income on the Island rose from $64,400 to $72,000 during that time.