If you talk to people who live in these 10 most expensive cities to live in Canada, the majority will tell you that the quality of life they have is worth every penny they spend. For years Canadian metropolitan areas have been among top-20 places with highest costs of living. However, when you compare prices in New York, the most expensive city in the world, with those in Toronto, you notice a significant difference. While in Big Apple total expenditure on goods and services is $3,342, in Toronto it is (you are almost compelled to say only) $2,609.
This doesn’t mean that Torontonians are stingy but that their purchasing power is lower. Last year’s USB global survey of prices and earnings revealed interesting facts about costs of living across the globe, including how many minutes you have to work in each of ranked cities to buy Big Mac and iPhone6. Torontonians need 15 minutes of work to afford special Mac meal, compared to New Yorkers who can have Big Mac for 11 minutes of work. When it comes to iPhone6, New York’s residents can become proud owners of the device in three working days, while their neighbors must sweat almost the whole week (37.2 hours) which is nothing if you have in mind that Nairobians need two and half month’s salary to cover the price of the Apple product.
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In general, one of the main reasons why cities in Canada rank high by costs of living is the price of housing. In January this year, average house price in Canada was $470,297, which represented the increase of 17 percent compared to a year ago. The rise is mainly due to the fact that prices in the most expensive cities in Canada continue to reach astronomic amounts. If the amounts needed to buy a home in British Columbia and Ontario were left out from the calculation of average home price, average worth of Canadian home would be $286,911. Despite high real estate costs, country’s largest cities are not as expensive for expats as some other places in the world. Mercer’s Cost of Living list, which ranked 209 cities globally according to how much foreign workers spend on 200 goods and services, placed Vancouver on 119th spot, far below N’Djamena (Chad), Lagos (Nigeria), Manila (Philippines) and many others. Other four Canadian cities which found the place on the list are Toronto, Montreal, Calgary, and Ottawa. However, if you think that half a million is too much for a house in the country with average temperatures well below zero during winter, you can check our list 10 most expensive cities to live in Colorado, where you will find lower prices and higher temperatures.
In creating the ranking of 10 most expensive cities to live in Canada, we used two criteria – annual average household expenditure and average house prices. First, we ranked cities by both criteria, and then we combined the ranking, calculating the average for each city to come up with this list. You will notice that Vancouver, which has been traditionally perceived as the most expensive place in Canada, occupies the fifth spot. The reasons for this are relatively low household expenditures which affect city’s overall costs of living. Data about expenditure were obtained from Statistics Canada. Note that for some cities latest available data are from 2007. Also, for some cities information about how much families spend yearly couldn’t be found at Statistics Canada, so we used other sources. RentSeeker was used as a source for real estate prices. Finally, we used Moneysens’s data about cities’ median household income and average time needed to buy a home.
10. Guelph
Household expenditure: 64,410; Rank: 15
House price: 384,579; Rank: 7
Average rank: 11
We start with Guelph, the smallest city on the list with a population of 121,668. Low crime and unemployment rates, high incomes, low expenditures are some aspects that make the city attractive for people considering moving to Canada. Not so positive aspects of life in Guelph include high real estate prices and very small percent of apartments available for rent. The vacancy rate is only 0.6 percent, which is the lowest in Ontario. Moreover, the average house price is $384,579, which might seem high but with median household income of $79,794, you should be able to buy it in 4.2 years.
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Svgalbertian
9. Kitchener
Household expenditure: 79,547; Rank: 6
House price: 353,275; Rank: 10
Average rank: 8
Kitchener, the city located in Southern Ontario, has a population of 219,153. Average household in Kitchener spends 79,547 Canadian dollars annually, out of which the greatest share goes for taxes and securities (21,302), shelter (16,212) and transportation (10,479). In order to buy a home in Kitchener, you need $353,275. In January 2016, the number of jobless people constituted 6.4 percent of total working force while the greatest number of workers was employed in goods-producing sector and manufacturing.
8. Kelowna
Household expenditure: 73,160; Rank: 10
House price: 439,405; Rank: 6
Average rank: 8
Kelowna is the third largest city in British Columbia province with a population of 179,839. If you are looking for a place where you can enjoy a number of outdoor activities than Kelowna is the right choice for you. Still, you should know that currently Kelowna is the worst Canadia city to find a job. In January, the unemployment rate was 7.6, which is the increase of more than 4 percent compared to last year. With median household incomes estimated at $64,822, Kelowna residents need to work 5.6 years before they can afford to buy a home, according to Moneysense.
7. Ottawa
Household expenditure: 78,463; Rank: 7
House price: 384,444; Rank: 8
Average rank: 7.5
One of the most attractive places to live in Canada, Ottawa, has a population of 953,599. Numbeo ranked Canada’s capital city as a second best city in the world by the quality of living taking into account number of parameters including the ratio between income and prices, pollution, health care, safety and so on. Ottawa also occupies second place on MoneySense’s list Canada’s best places to live 2015. If this makes you wonder how it would be like to move to Ottawa, you should know that you need to have a job with the salary which can cover the annual household expenditure of $78,463 and house price of $384,444. For many people, this is the attainable goal as only 3.9 years pass before residents buy a home.
6. Edmonton
Household expenditure: 80,527; Rank: 5
House price: 375,619; Rank: 9
Average rank: 7
Edmonton, the capital of Alberta province, has a population of 1,328,300. Compared to 2014, the city slipped 25 spots to 33rd place on Monesense’s latest list of best Canadian cities to live in. One of the problems that community recently faced is increasing unemployment rate. In last six months, it has reached 6.2 percent mainly as a result of drop down of oil prices which caused layoffs. Households in Edmonton spend $80,527 annually while the average home price is $375, 619. Moneysense estimates that it takes 4.1 years to buy a home in the city.
5. Vancouver
Household expenditure: 76,870; Rank: 9
House price: 909,293; Rank: 1
Average rank: 5
Vancouver, the city which can be proud of its ethnic and cultural diversity, is ranked fifth on our list 10 most expensive cities to live in Canada. If you want to become a proud owner of the house in the city, you need to be ready to spend almost a million. Moreover, Moneysense estimates that residents wait on average 11.4 years before they are able to afford their place, which is the longest time among listed cities. In January, this year unemployment rate was 5.7 percent while median household income was $58,076.
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4. Hamilton
Household expenditure: 84,881; Rank: 2
House price: 448,400; Rank: 5
Average rank: 3.5
Hamilton, a port city in Ontario province with a population of 519,949, is often referred to as steel capital of Canada since sixty percent of country’s steel is produced here. The city ranks as second by household expenditure estimated at almost $85,000 and fifth by real estate prices. Average home price is $448,400 while residents work 4.2 years before being able to buy a home. A number of things attract people to Hamiton, including Royal Botanical Gardens, where more than 1,100 plant species grow and which is called “plant biodiversity hotspot” in Canada. Moreover, the city is home to some of the best universities and medical schools in the country.
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3. Victoria
Household expenditure: 84,515; Rank: 3
House price: 528,564; Rank: 3
Average rank: 3
Victoria, the capital city of British Colombia, has a population of 344,615 (Greater Victoria). The city has the smallest median household income ($47,652), so it is no wonder that this is the place where residents spend 7.5 years before buying a home whose average price is $528,564. If you undermine high costs of living, you will discover many positive aspects of life in Victoria including mild temperatures, low taxes, proximity to Vancouver, beautiful historical landmarks.
2. Toronto
Household expenditure: 83,847; Rank: 4
House price: 641,617; Rank: 2
Average rank: 3
Toronto, Ontario’s capital and most populous city in Canada, has 2,615,060 residents. UBS survey places Toronto among top-20 cities by domestic purchasing power, wage levels, and price levels. This is also second most expensive city in Canada to buy a house. Average real estate price is $641,617 and according to Moneysense, it takes 6.5 years on average to become the owner of property in Toronto. Finally, median household income is $59,646.
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1. Calgary
Household expenditure: 95,187; Rank: 1
House price: 462,666; Rank: 4
Average rank: 2.5
Calgary, the largest city in Alberta province, ranks first on our list of 10 most expensive cities to live in Canada. The city, whose residents have one of the highest incomes in the country, is the center of Canada’s oil industry. Around 68.500 people are employed in the energy sector which significantly contributes to city’s budget. This is the place with highest median household income estimated at $83,473, as well as with highest household expenditures. Despite the strong economy, in last few months, the number of available jobs dropped by 2.3 percent while the unemployment rate is 7.7 percent currently. Maybe the most important thing to know about Calgary is that it is the cleanest city in the world. With that fact in mind, spending $462,666 on a home doesn’t seem so much.