diff --git a/docs/changelog/2440.bugfix.rst b/docs/changelog/2440.bugfix.rst
new file mode 100644
index 000000000..479d7f3c4
--- /dev/null
+++ b/docs/changelog/2440.bugfix.rst
@@ -0,0 +1 @@
+Use parent directory of python executable for pyvenv.cfg "home" value per PEP 405 - by :user:`vfazio`.
diff --git a/src/virtualenv/create/creator.py b/src/virtualenv/create/creator.py
index a95b6e2d5..5ea6abec4 100644
--- a/src/virtualenv/create/creator.py
+++ b/src/virtualenv/create/creator.py
@@ -157,7 +157,7 @@ def run(self):
 
     def set_pyenv_cfg(self):
         self.pyenv_cfg.content = OrderedDict()
-        self.pyenv_cfg["home"] = self.interpreter.system_exec_prefix
+        self.pyenv_cfg["home"] = os.path.dirname(os.path.abspath(self.interpreter.system_executable))
         self.pyenv_cfg["implementation"] = self.interpreter.implementation
         self.pyenv_cfg["version_info"] = ".".join(str(i) for i in self.interpreter.version_info)
         self.pyenv_cfg["virtualenv"] = __version__
diff --git a/tests/unit/create/test_creator.py b/tests/unit/create/test_creator.py
index d3adb2ae6..35f919275 100644
--- a/tests/unit/create/test_creator.py
+++ b/tests/unit/create/test_creator.py
@@ -318,6 +318,15 @@ def test_prompt_set(tmp_path, creator, prompt):
             assert cfg["prompt"] == actual_prompt
 
 
+@pytest.mark.parametrize("creator", CURRENT_CREATORS)
+def test_home_path_is_exe_parent(tmp_path, creator):
+    cmd = [str(tmp_path), "--seeder", "app-data", "--without-pip", "--creator", creator]
+
+    result = cli_run(cmd)
+    cfg = PyEnvCfg.from_file(result.creator.pyenv_cfg.path)
+    assert cfg["home"] == os.path.dirname(result.interpreter.system_executable)
+
+
 @pytest.mark.slow()
 @pytest.mark.usefixtures("current_fastest")
 def test_cross_major(cross_python, coverage_env, tmp_path, session_app_data):