Many people across the country are likely to want to know how affordable it is to live in various parts across Canada. Known as the standard cost of living, this measure of economic welfare will help home owners and residents determined whether they can afford to live in a certain part of the country.
Whether or not you’ve heard ‘rumours’ about Canada being an expensive place to live – and while compared to some parts of the world it may be, it’s important to see how the Canadian cost of living stacks up across the country & compared to other countries. This can help provide even further perspective on this topic whether you’re interested in housing affordability across Canada or general costs of living.
In addition to these key pieces of information and exact figures, it is also extremely relevant to individuals who are struggling with a lot of personal debt. If you are trying to manage your debt load, yet also trying to understand the realities of living in various parts of the country – read on to learn more about which provinces and cities may make this more manageable for you.
An Overview of the Cost of Living in Canada
While the cost of living will certainly vary across the provinces, within each region urban and rural affordability will also differ. Categories such as housing, transportation, food, clothing, household goods, and entertainment & recreation should all be factored in and as a whole illustrate an overview that ranges from affordable to unaffordable. Among the most expensive of the Canadian cities, Vancouver, B.C., Toronto, ON, Victoria, B.C., and Calgary, AB are among them.
Vancouver, BC
Taking a look at the spectrum of Canadian provinces and cities, Vancouver B.C. has been identified as the most expensive city to live in throughout the country. The average price to purchase a home sits at $748,651. With the cost of housing going up this may leave many home owners and renters looking to make the move to other regions outside of the city. The average cost to rent in the heart of Vancouver city will range from $1,480 and as high as $2,973 per month. If instead, it is outside of the city, renting costs will be a bit more affordable ranging from $ 1,043 to $ 1,950 each month.
The price of gas in Vancouver has recently been higher on average than other provinces at 133 per litre and currently fuel prices around the city have been observed at around 129.9 and the cost of monthly transportation pass will be around $108. A meal for two on average will be approximately $60.00. Finally, the average monthly amount of disposable income residents in Vancouver may walk away with is $3,281, perhaps indicating that salaries may be higher in some cases.
Toronto, ON
In Ontario, Toronto is often known as the second most expensive city for home owners, with an average house cost of $483,000. For renters, the costs are also quite high ranging from $1,105 outside of the city centre and $1,445.45 inside the city – up as high as $2,700.00 per month. The average cost of a restaurant meal for 2 is about $75.00 and transportation is also quite costly and comparable to Vancouver with a monthly cost of $133.75. Gas prices are currently around 115.9/litre. The average disposable salary per month is also comparable to Vancouver as well at $3,325.67.
Victoria, BC
Going back to BC, Victoria is up there with high costs of housing in the nation. Home owners can expect to pay about $421, 939. Renting costs outside of the city range from $833.57 – 1,450.00 and inside the city centre, renters typically pay approximately $1,085 – $1,858. Meals on average for two will cost about $65, which is comparable, yet purchasing a monthly transport pass will be lower at $85.00. Also monthly disposable income works out on average to $3,193.26 which is similar to that of the two above-mentioned major cities.
Calgary, AB
Moving over to Alberta, we see that Calgary also ranks near the top of the most unaffordable housing market. Not too far off from Victoria’s housings costs – $418,983 is the average cost per home. Meals are comparable with $65.00 for a party of two and transportation also costs about $96 for a monthly pass. To rent a dwelling outside of the city limits – it will range from $1,132 – $1,976.93 and costs inside the city naturally sit higher and more so range from $ 1,368 – $2,400 per month – indicating a relatively high cost of living and level of housing affordability.
Hamilton, ON
Comparing another city in Ontario can also demonstrate a variance in the cost of living across this province. The Hamilton area has an average home cost of $350.000,although from a renter perspective, prices more realistically range from $740 to $1,150 per month. Transportation costs are also lower per month at $87.50 and gas prices around 99.6 -110.9 per litre. The average meal for two individual is closer to $55.00, making indicating lower foods and services costs overall. Lastly, disposable income levels however, look more like $2,808 a month, a bit lower than that of the other more expensive cities.
Saskatoon, Sask.
Moving west back across to the prairies, we see that housing prices in Saskatoon are slightly lower, once again. The average home price is $320, 812 and renters are more likely to pay costs that span from $807 up to $1,583 per month. A meal for two will also cost slightly less at $43.00 and typical transportation costs per month are more reasonable at $ 80.00. On average, residents of Saskatoon also maintain a monthly disposable income amount of approximately $2,725 – comparable to that seen in Hamilton.
Montreal, Quebec
Moving over towards Quebec, where in Montreal, housing affordability sustains median prices nearing $318,982. As a renter, individuals pay lesser rates that are as low as $653.16 up towards $1,183 per month. The average cost of a meal for two people will cost approximately $60 – comparable to many other city average restaurant prices, yet slightly still on the lower side. A monthly transportation pass will cost around $80, which also is more affordable as opposed to the $100.00+ seen in both Vancouver and Toronto. Disposable income levels are also generally lower in this province, averaging $2,886 per month.
Halifax, NS
Moving over to the eastern side of the country, Halifax, Nova Scotia also sits at the more favourable side in terms of overall affordability. The average single family home in Halifax currently goes for about $305,584 and the renting landscape ranges from $833 – $1,150 outside of the city limits. In the city on the other hand, rent prices creep up and range from about $1,050 to $ 1,614.29. The average cost of a meal is $61.00 and transportation costs for moving around the city for a month are about $78.00. Average monthly disposable income for Halifax residents is on average $2, 611, with average annual salaries approximately $49,000.
As you can see the cost of living across Canada may at times seem high – with variations noted across the country. Compared to global affordability, Canada’s high cost of living is still surpassed by that of other countries such as Switzerland, Australia, the United Kingdom and many more.
With that being said, as a resident of Canada, if you have high debt or at the very least are trying to keep a lid on your debt – opting for a region with a more favourable cost of living and affordability factor may play a huge role in your decision to relocate.
With high house prices across the country, and large debt loads – can Canadians realistically purchase a house? While, this endeavour may seem more obtainable because of lower interest rates, it is still important to look to the future and think about what will happen when these rates eventually rise? Can you afford buying a home now and will you be able to sustain this cost of living over time?
If home ownership is a dream that you wish to fulfill, then reassessing your debt and whether you can truly afford a home will be important. Examining the variance in cost of living throughout the country will also help you determine which region may best suit your needs and help you manage your debt and keep your finances in the best shape possible. Ultimately, this type of data can also help you decide what part of the region you may be able to afford. For example, if you have your heart set on living in a certain province, you could look to relocate outside of the city centre where housing is more affordable and the cost of living is generally more reasonable.
