Aug 22, 2025
As one of many provinces across Canada struggling with affordable housing supply, Prince Edward Island began working on a $1.4 million affordable housing project in Charlottetown in March 2023. But it’s taken two and a half years for the project to finally be greenlit.
Back in March of 2023, PEI’s Housing Corporation (PEIHC) received a permit from Charlottetown to demolish a building in a historic part of town to create a new affordable housing location containing three units, CBC News reported.
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The proposal was appealed by a resident to the province’s Island and Regulatory Appeals commission in the summer of 2023 — she collected more than 95 signatures from PEI residents and sent a letter to the province. Ultimately, the appeal was dismissed and the city issued a new demolition permit on May 30th of this year.
Still, the PEIHC received grumblings from locals due to its recent bylaw changes that allow any residents to request a review of staff or official decisions. That said, the demolition was completed and the new affordable units are expected to be ready by next spring.
The push for more affordable housing in PEI and beyond
The project is a result of the province’s move toward increasing the housing supply to address affordability issues. Last year, PEI hit a record for housing starts — 1,694 homes were built in 2024, up 48.7% from the year prior. Government data shows this is the most starts the province has seen since 1973.
While the numbers are a welcome sign, experts are asking for more. A recent report from Canada Mortgage and Housing Corporation (CMHC) projects that PEI needs to build an average of nearly 2,200 homes per year until 2035 to keep apace with demand. PEI’s standard average housing starts per year sits at around 1,300, so much more work will need to be done.
This, however, is an issue impacting Canadians from coast to coast. In the same report, CMHC projects that Canada as a whole will need to nearly double its housing supply to return to pre-pandemic affordability levels.
“We now estimate that housing starts must nearly double to around 430,000 to 480,000 units per year until 2035 to meet projected demand,” the report states.
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What you can do to break into a tough housing market
Breaking into a housing market during an affordability crisis can feel impossible. Here are some ways you can edge your way into finding a home, even if the market isn’t at ideal rates.
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- Use the right account. Not every account is created equal when it comes to saving for a home. If you’re saving for your first home, consider using the First Home Savings Account (FHSA). Contributions are tax deductible like an RRSP and money withdrawn for a home purchase is free of taxes.
- Be strategic about when you purchase. Some seasons are better for buyers than for sellers. According to real estate company Wahi, winter can be the least expensive time of the year to purchase a home. But, some areas have different housing market seasons. Make sure you know when the peak purchasing and selling periods are in the region you're interested in.
- Dip into your RRSP. Though it is generally unadvisable to use your retirement savings for major purchases, first-time homebuyers can withdraw up to $35,000 tax-free under Canada’s Home Buyer’s Plan. Any funds withdrawn do need to be paid back within 15 years, but if it means being able to finally buy a home, it may well be worth it.
Sources
1. CBC News: $1.4M affordable housing project underway in downtown Charlottetown after delays, by Thinh Nguyen (Aug 7, 2025)
2. CBC News: Proposed apartment project in downtown Charlottetown under IRAC appeal, by Tony Davis (July 25, 2023)
3. Prince Edward Island Canada: PEI continued to lead Canada in economic growth in 2024 (July 10, 2025)
4. CMHC: Housing shortages in Canada
5. Wahi: What Is the Best Time of Year to Buy a House?, by Emily Southey (Sept 1, 2025)
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Brett Surbey is a corporate paralegal with KMSC Law LLP and freelance writer who has written for Yahoo Finance Canada, Success Magazine, Publishers Weekly, U.S. News & World Report, Forbes Advisor and multiple academic journals. He and his family live in northern Alberta, Canada.
