Is the Cost of Living High in Canada? Which Are the Most Expensive Cities to Live in Canada?

Canada, with its culture, lifestyle, and economy, is one of the most beautiful places to spend your life. It ranks high in government transparency, safety, education, healthcare, civil liberties, and quality of life. The multicultural environment welcomes people of different races to live in harmony. In a rapidly growing economy like Canada, there is immense potential for personal growth. With tens of thousands of job opportunities increasing each year, Canada sees a decrease in poverty rates and a flourishing economy. Is the cost of living high in Canada? Which are the most expensive cities to live in Canada? This article will cover monthly expenses, housing costs, health insurance, food expenses, electricity, transportation costs, and more.

Cost of Living in Canada

Canada ranks high when considering quality of life and economic strength. These are key drivers for thousands of people wanting to immigrate to the country. Moreover, Canada is relatively reasonable compared to other countries like the UK, USA, Japan, and Switzerland when considering growth opportunities and quality of life. The fact that Canada is a first-world country explains why it is not the cheapest place to prosper. However, it poses fierce competition to other economies when considering immigration.

The main reason for the high cost of living in Canada is the tax rate. Government-set tax rates aim to provide free healthcare, social security, secondary education, police, and military services.

In 2021, the average cost of living in Canada was 2,730 Canadian dollars. To determine how expensive it is for an individual, one must check a currency converter for an accurate idea.

Most Expensive Cities to Live in Canada

The cost of living in Canada varies depending on the geographical location and significance of the place. The second reason Canada is expensive from one city to another is its housing costs. Smaller towns will have lower living costs, but they will also have fewer job opportunities compared to big cities.

When you plan to immigrate to Canada, you must first identify your opportunities and then check living expenses. The most sought-after places, which are also the most expensive to live in, include:

Vancouver in British Columbia

Toronto in Ontario

Montreal in Quebec

Calgary in Alberta

Ottawa in Ontario

A family of four needs to spend 4,032 Canadian dollars per month, excluding rent. For an individual, it's also 1,125 Canadian dollars.

How Much Money Do You Need to Live in Canada?

As of 2021, an individual must earn at least 40 Canadian dollars per hour, i.e., 78,000 Canadian dollars per year, to sustainably survive. The quoted amount helps residents live a decent lifestyle in Canada with their family. It is important to note that entry-level job opportunities will not help you earn this much. The annual salary for such jobs is about 32,293 Canadian dollars.

Living a comfortable lifestyle in Canada varies depending on the province you choose to settle in. For example, it is much easier to live a comfortable lifestyle in Nova Scotia compared to British Columbia. Moreover, there will be significant cost differences in every place if you choose to live inland rather than in the suburbs.

A decent salary to settle down and live a sustainable lifestyle requires an annual income of at least 42,000 to 59,000 Canadian dollars. Moreover, most provinces in Canada help you live a modest lifestyle while providing quality life, weather conditions, and public safety.

How Expensive is Canada Compared to Other Countries?

According to the latest world data, Canada ranks 21st in terms of cost of living. The average monthly cost requirement is 3,632 US dollars, with a purchasing power index of 68.4%.

The total cost of living in Canada is lower than in countries like Japan, New Zealand, the USA, and the UK. However, when planning to move to Canada, you must determine your financial situation based on the exchange rate of the Canadian dollar to your country/region.

Cost of Living in Canada [Based on Major Cities in Canada]

When planning to move to Canada, the first place you will want to locate will include major cities in Canada, rather than suburbs.

Before looking for the cheapest city, you should check whether you can afford the expensive cities. Here are the top 11 Canadian cities we will explore before you settle elsewhere:

1.Cost of Living in Toronto

The cost of a 900 square foot furnished accommodation in Toronto ranges between CAD 2,761 and CAD 3,226, depending on location and amenities. Insurance for tenants is about CAD 50, followed by CAD 150 for utilities such as water, gas, and electricity, CAD 100 per week for food, and CAD 130 for transportation. Including internet, mobile phone bills, entertainment, and other expenses, the total cost for one person is not less than CAD 4,000.

2.Cost of Living in Ottawa

In Ottawa, the cost for a 900 square foot furnished accommodation ranges from CAD 1,713 to CAD 2,138, depending on prime locations or other factors. Utilities cost about CAD 196, followed by internet and phone bills at CAD 95. Grocery expenses for one person are at least CAD 60 per week. The total living expenses for an individual, including entertainment, dining in mid-range restaurants, and other costs, range from CAD 2,500 to CAD 3,000.

3.Cost of Living in Oakville

The average cost of living in Oakville is CAD 2,500. Rent for a one-bedroom apartment in the city center is CAD 1,423, while outside the city center it is CAD 1,340. Basic utilities cost around CAD 121, and internet and phone services about CAD 57. Using public transportation costs CAD 110 or more, and food is at least CAD 100 per week or more. Adding shopping, entertainment, and outings, you need at least an additional CAD 200 in your budget.

4.Cost of Living in Vancouver

The monthly rent for a 480 square foot furnished apartment in Vancouver is about CAD 1,760 in a normal area and around CAD 2,360 in a luxury area. In an expensive area, a 900 square foot furnished place could cost as much as CAD 3,320, making the cost of living in Vancouver extremely high. A transit pass is CAD 131, and an 8-kilometer taxi fare is CAD 35. The average cost for lunch is about CAD 27, and weekly groceries are around CAD 100. Utilities are at least CAD 172, and with entertainment, internet, and other expenses, the average monthly expenditure for an individual is at least CAD 3,000.

5.Cost of Living in Calgary

Rent in Calgary is relatively cheap, with a 900 square foot furnished apartment in the city center available for CAD 1,688. Utilities for an individual are slightly higher, around CAD 200. Weekly grocery costs are about CAD 80, plus CAD 90 for internet and entertainment. Public transit pass costs CAD 105, totaling around CAD 2,200 for an individual.

6.Cost of Living in Alberta

The housing cost for an individual in Alberta can be as low as CAD 703. Families prefer such places as the cost of rent and living is around CAD 2,100. Groceries are approximately CAD 300, and the average meal cost when dining out is CAD 25. Utilities for an individual are around CAD 95, and for a family, CAD 147. A monthly transit pass is CAD 92. An individual can manage to live in Alberta with a monthly income of CAD 1,500.

7.Cost of Living in British Columbia

Compared to British Columbia, the average cost of living in Canada is 1.5 times lower. Here, the cost of a furnished one-bedroom apartment ranges from CAD 1,641 to CAD 1,869. Utilities are around CAD 100, and weekly food expenses are about CAD 80. A public transit pass is CAD 66 per month, and entertainment costs are around CAD 100. The average wage required to maintain a living in the province is CAD 3,067.

8.Cost of Living in Manitoba

Manitoba is not everyone's first choice among Canadian provinces, but it is affordable and close to Ottawa. Rent for a 900 square foot furnished place is CAD 988. An 8-kilometer taxi ride costs about CAD 26. Weekly food expenses are between CAD 60 and CAD 80. Including other expenses, the total living cost for an individual is around CAD 1,500.

9.Cost of Living in Nova Scotia

In Nova Scotia, the housing cost for a 900 square foot furnished apartment ranges from CAD 1,541 to CAD 2,165, depending on the location. For 480 square feet, it is between CAD 1,609 and CAD 938. Utilities for an individual are CAD 116, internet CAD 54, a monthly pass CAD 81, and approximately CAD 70 per week for food. An average person needs CAD 2,167 to maintain a living in Nova Scotia.

10.Cost of Living in New Brunswick

The cost of living in New Brunswick is 1.17 times higher than the average cost of living in Canada. The average required salary is CAD 2,383. Household expenses include CAD 300 for food and CAD 88 for utilities. Monthly rent is CAD 1,275 for an individual and CAD 2,893 for a family of four. A monthly transit pass costs about CAD 54.

11.Cost of Living in Prince Edward Island

In this province, the living cost for a 480 square foot apartment away from the city center is CAD 859. A 900 square foot apartment in a prime location costs about CAD 1,571. Internet and phone bills are around CAD 150, and grocery expenses are relatively cheap. You need to pay CAD 63 for a monthly transit pass, and entertainment expenses can be maintained between CAD 50 to CAD 100. In a city like Charlottetown, the average cost of living is around CAD 1,500.

Common Questions About Living Costs in Canada

How much money do you need to live comfortably in Canada?

1.The cost of a comfortable life in Canada varies by province. If you settle in a place like Toronto, your average monthly expenses (excluding rent) are at least CAD 1,200. In Montreal, it's at least CAD 1,000. These expenses include food, public transportation, utilities, and other variable costs.

2.Is it expensive to live in Canada?

Canada ranks 21st among 109 countries in terms of average living standards. Compared to the cost of living in countries like India, Pakistan, China, Indonesia, and Kenya, it is quite expensive. However, there is not much difference in living costs when migrating from European countries like the UK, France, Germany, and Italy.

3.Is it cheaper to live in Canada or the USA?

Overall, the cost of living in Canada is cheaper than in the USA. The average cost for an individual in the USA is about USD 5,378. However, making an accurate comparison is a bit tricky as it largely depends on where you live. For example, the cost of living in places like Michigan or Detroit might be similar to that in Vancouver. Michigan is 11% cheaper than the national average in the USA, while British Columbia is the most expensive place to live in Canada.

4.How much does it cost to live in Canada per month?

The living cost for an individual in Canada is about CAD 1,172, excluding rent. For a family of four, it's around CAD 4,217, excluding rent. The average rent ranges from CAD 1,500 to CAD 2,500, depending on the size and location of the apartment. However, if the location is not in the city center, it can be reduced by CAD 200 to CAD 300. Rent and living expenses vary depending on the province you choose. For example, monthly rent for a one-bedroom apartment is about CAD 700 in Quebec City and about CAD 1,900 in Vancouver.