Balfour was born to a Jewish family in Los Angeles, California, the son of David Balfour, a chiropractor, and Sharon (née Salter), who works as a marriage and family counselor. He has a younger sister, Tori.
He described his household growing up as "creative" and said that his family often made trips to the Esalen Institute in Big Sur.
Balfour appeared on the kids TV show Kids Incorporated for one season in 1991. During the early 1990s, he had a variety of minor juvenile roles on television series such as Dr. Quinn, Medicine Woman, Arresting Behavior, Boy Meets World and Step by Step. In 1997, he appeared in the first two episodes of Buffy the Vampire Slayer as Jesse McNally, one of the show's first victims. Eric was a regular on the HBO series Six Feet Under as Gabriel Dimas in 2001. He appeared as a regular cast member in three short-lived TV shows. Veritas: The Quest was cancelled after four episodes in 2003, Hawaii was canceled after seven episodes in 2004, and Sex, Love & Secrets was canceled after four episodes. Also in 2005, Balfour starred in the sexually explicit Canadian drama Lie with Me opposite Lauren Lee Smith. In March 2006, Balfour debuted as Brian Peluso on producer Dick Wolf's short-lived NBC crime drama, Conviction, which lasted one season. Balfour was also a guest star on the hit show Dawson's Creek in the ninth episode of the first season.

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