What is the Cost of Living in Canada? (2024)

Are you an immigrant contemplating a move to Canada and curious about the cost of living? Or perhaps you’re a Canadian resident grappling with the escalating expenses that are making life more challenging?

Realistically, the cost of living in Canada has surged to unprecedented levels, driven by soaring housing prices, increasing grocery costs, transportation expenses, and more, positioning Canada as one of the world’s most expensive countries to reside in.

In this post, we embark on a thorough exploration of Canada’s cost of living, leveraging insights from reputable sources such as Numbeo, the Government of Canada, and provincial public transit websites.

Our goal is to provide you with factual information about how much it costs to live in Canada so you can carefully budget and plan your finances, ensuring a comfortable lifestyle in Canada.

What is the Average Cost of Living in Canada?

According to Numbeo, the estimated monthly cost for a family of four is $5,182.5 CAD without rent and $1,445 CAD for a single person without rent.

It is important to keep in mind that the average cost of living in Canada does not include rental costs. In Canada, monthly rents are estimated to be $1,708 per month per person and $3,911 for a family of four. 

The average cost of living is simply the bare minimum needed to live in Canada. In some Canadian provinces, this may be more while in others it may be less. 

How Much Does It Cost To Live in Canada?

In the past, life in Canada was characterized by greater ease and affordability compared to the present day. However, the landscape has shifted with the tide of rising inflation, dramatically affecting the prices of essential commodities and posing challenges to maintaining a comfortable standard of living in Canada.

Beyond the impact of inflation, numerous factors contribute to the overall cost of living in the country. Foremost among these is the housing market, particularly in major urban centres such as Toronto, Vancouver, and Montreal. Here, the real estate sector has undergone remarkable growth, resulting in exorbitant housing prices that have placed homeownership beyond the means of many Canadians.

However, the cost of living in Canada is also influenced by other factors, including transportation, healthcare, education, and more.

Let’s look at the present cost of different factors that contribute to the overall cost of living in Canada:

Cost of Rent in Canada

The average home prices in these urban centres are usually higher than the national average,  making them some of the most expensive places to purchase property in Canada. Major cities like Vancouver and Toronto are at the top of the chart.

This trend is driven by various factors, including high demand for housing, proximity to breathtaking natural landscapes, and the dynamic urban lifestyle these cities provide.

Cost of Utilities in Canada: Internet, Water, and Electricity

The average monthly cost of utilities in Canada is $284.83. Utility costs in Canada can vary significantly depending on the province in which you reside. Generally, utilities in Canada are reasonably priced, and if you’re renting a property, these costs may often be bundled into your monthly rent, making it easier to budget.

One significant component of utility costs is electricity. Electricity has various prices across provinces due to factors such as energy sources, population density, and proximity to generation sources.

According to data from Numbeo, the average cost of a basic utility package, which includes heating, electricity, water, garbage, and Internet in Canada, is as follows:

Cost of Food & Groceries in Canada

The average monthly cost of groceries in Canada is $323.04. The global economy has driven up gas and food prices worldwide, posing challenges for consumers. However, in Canada, essential food items such as eggs, milk, bread, and others are exempt from additional taxes when sold in supermarkets and grocery stores.

Here are the average cost of food and groceries in Canada:

Cost of Public Transit in Canada

Canada provides its residents with a range of convenient transportation options, from buses to ferries and metros. These services are typically managed by provincial governments in different cities, with monthly costs varying from $82.50 to $156.00.

Here are the prices for public transit in Canada:

• One-way Ticket (Local Transport):  $3.50
• Monthly Pass (Regular Price): $104.90 
• Taxi Start (Normal Tariff): $4.50 
• Taxi 1km (Normal Tariff): $2.07
• Taxi 1 hour Waiting (Normal Tariff): $39.00
• Gasoline (1 liter): $1.59
• Volkswagen Golf 1.4 90 KW Trendline (Or Equivalent New Car): $33,978.00 
• Toyota Corolla Sedan 1.6l 97kW Comfort (Or Equivalent New Car): $27,708.15

Here are the costs of monthly passes in different cities in Canada:

Cost of Entertainment & Restaurants in Canada

Canada offers a wealth of attractions, including beautiful locations, museums, sports centres, cinemas, and activity hubs, complemented by a diverse array of dining options. However, the affordability of entertainment can differ significantly based on your city of residence.

Here are the entertainment and dining costs in Canada for 2024:

RELATED: 25 Cheapest Places to Live in Canada in 2024

What is the Cost of Living in Major Canadian Cities?

Understanding the expenses associated with living in specific cities and provinces in comparison to the average and median income levels is crucial for deciding where to settle. It’s essential to grasp how the cost of living aligns with earnings in a particular area, as this dynamic can impact an individual’s financial well-being over time. High living costs can hinder savings potential, ultimately stunting net worth growth.

Cost of Living in Toronto

Ontario, Canada’s largest province with over 14.7 million residents, is renowned for its high cost of living, especially in cities like Toronto. Here, housing expenses rank among the highest in the country, impacting nearly half of Ontarians residing in the Greater Toronto Area (GTA).

To put it into perspective, purchasing an average home in Toronto now demands a household income exceeding $225,000. Monthly expenses for essentials such as food, electricity, and communication have also risen sharply, with food averaging around $445, electricity approximately $161, and communication services, including phone and internet, totalling about $169 per month.

Housing costs vary depending on property size, with average rental rates ranging from $1,306 for a bachelor-style apartment to $2,018 for a three-bedroom unit.

Transportation expenses are significant, particularly in a sprawling city like Toronto. While public transportation offers a cost-effective option, suburban residents often resort to car ownership, despite its high price. Car insurance premiums in Ontario are notoriously high, averaging around $145 monthly, while fuel costs can add up to approximately $285 per month.

Regarding food expenses, Toronto’s Nutritious Food Basket estimates monthly costs at $1,177 for a family of four. Dining out further contributes to expenses, with lunch averaging over $10 per person and dinner exceeding $25 per person.

Childcare costs present another financial hurdle, with Toronto ranking among the highest in Canada. Median monthly fees were projected to be $974 for infant care, $807 for toddler care, and $650 for preschool.

Cost of Living in Ottawa

As the capital of Canada, Ottawa boasts a lower cost of living compared to Toronto, primarily due to its more affordable housing options. According to the CMHC Rental Market Survey, the average monthly rents in Ottawa are as follows:

• $1,121 for a bachelor-style apartment
• $1,347 for a 1-bedroom apartment
• $1,627 for a 2-bedroom apartment
• $1,769 for a 3-bedroom apartment

With rental rates significantly lower than those in Toronto, residents stand to save thousands of dollars annually. 

For electricity and communication service costs, the estimated monthly living expenses for one person in a bachelor-style apartment amount to approximately $1,440.

While Ottawa’s public transportation network isn’t as extensive as Toronto’s, a monthly adult pass costs $125.50. Alternatively, driving may be more convenient, especially for commuters from the suburbs or the nearby, more economical Gatineau, Quebec, where gas and insurance expenses are similar to those in Toronto.

In terms of food expenses, Ottawa aligns closely with the Ontario average. The average household of 2-4 people in Ontario spends around $868 per month on food, including dining out, this equates to approximately $445 per month for an individual.

Childcare costs in Ottawa are projected to be lower compared to Toronto and London. The monthly median costs are estimated at $510 for infant care, $627 for toddler care, and $515 for preschool.

This affordability makes staying home as a parent less imperative, especially considering that Ottawa’s proximity to Gatineau offers subsidized childcare through the Quebec government. 

Cost of Living in London

London is increasingly becoming an attractive option for those seeking to save money while still being able to work in the Greater Toronto Area (GTA), with many residents commuting to Toronto daily. When it comes to rent, the average monthly rates are as follows:

• $860 for a bachelor-style apartment
• $1,124 for a 1-bedroom apartment
• $1,394 for a 2-bedroom apartment
• $1,509 for a 3-bedroom apartment

Considering standard electricity and communication service costs province-wide, the average monthly cost for one person in a bachelor apartment hovers around $1,190.

On the transportation front, a monthly bus pass is a budget-friendly option at $95 for the average adult, notably less expensive than the fees in Toronto and Ottawa. However, this is partly due to fewer ride options and less citywide connectivity. Consequently, owning a car becomes a necessity, especially for those commuting from London’s outskirts or surrounding areas. The overall cost of owning a car in London remains relatively standard across Ontario, factoring in similar insurance rates and gas prices.

As for food expenses, the average monthly cost per person aligns with the provincial figure of approximately $445. However, due to the generally lower cost of living in the city, London may lean towards the lower end of this spectrum.

Lastly, the projected cost of childcare in London falls between that of Toronto and Ottawa, with monthly medians at $635 per month for infant care, $608 per month for toddler care, and $542 per month for preschool.

Cost of Living in Montreal

Despite being Canada’s second most populated metropolitan area, Montreal stands out as one of the most budget-friendly major cities in the country. This affordability is largely attributed to remarkably low rental costs compared to other urban centres.

Average monthly housing expenses in Montreal break down as follows:

• $785 for a bachelor-style apartment
• $912 for a 1-bedroom apartment
• $1,022 for a 2-bedroom apartment
• $1,232 for a 3-bedroom apartment

In addition to the rents, power costs are a mere $87 (including taxes) for an average consumption of 1000 kWh per month. Communication services, totalling $160 per month, contribute to some of the lowest overall housing costs in Canada, averaging around $1,032 for an individual residing in a bachelor-style apartment.

Transportation costs in Quebec are among the nation’s lowest, with insurance rates at approximately $70 per month. Despite slightly higher gas prices compared to the national average, Montreal still ranks as one of the most cost-effective cities for driving. Public transportation, especially within the city, is also affordable, with the monthly cost of an adult Montreal transit pass being $97.

As for food expenses, the average monthly household spending in Montreal is around $1,262 for a household of three people, translating to approximately $421 per person. This positions the cost of food as one of the most economical in Canada, though individual variations may exist based on dietary preferences and dining habits.

Also, Montreal’s subsidized childcare system ensures that the average monthly provincial rate for infant care, toddler care, and preschool is only $189. This feature enables young families to have both parents working, with the additional income far surpassing the minimal childcare costs. 

Cost of Living in Calgary

The cost of living in Calgary stands as one of the more affordable options among Canada’s major cities, largely due to its lower rents. Here’s a breakdown of average monthly rents:

• $972 for a bachelor-style apartment
• $1,222 for a 1-bedroom apartment
• $1,463 for a 2-bedroom apartment
• $1,579 for a 3-bedroom apartment

This affordability in rent is partly a reflection of the economic challenges that Calgary has encountered in recent years. When factoring in additional housing expenses like electricity, priced at 19.9 cents per kWh with a typical monthly cost of $209 (including taxes), and communication services averaging $180 per month, the total housing expenses for a single person in a bachelor-style apartment amount to approximately $1,361.

Regarding transportation, many residents in Calgary lean towards driving rather than relying on public transit. Monthly insurance costs average $118, while gas expenses remain below the national average. However, for those opting for public transit, the monthly cost stands at $112 for an adult pass.

Monthly food expenses in Calgary rank among the highest in Canada, averaging around $484 per person. Given Calgary’s status as a major city, it’s reasonable to expect slightly elevated food costs due to the overall higher cost of living compared to smaller towns.

Lastly, childcare expenses in Calgary are among the highest nationwide, with projected median costs at $770 for infant care, $785 for toddler care, and $700 for preschool.

Cost of Living in Winnipeg

Living in Winnipeg comes with a remarkably low cost of living compared to other major cities. Here’s a breakdown of monthly housing costs:

• $789 for a bachelor-style apartment
• $1,056 for a 1-bedroom apartment
• $1,352 for a 2-bedroom apartment
• $1,684 for a 3-bedroom apartment

Beyond the affordable rent, electricity is a budget-friendly expense at 10.24 cents per kWh, totalling approximately $117 (with taxes) per month for average consumption of 1000 kWh. Communication services are also reasonably priced, slightly below the national average at $175 per month. Overall, the total monthly housing cost for one person in a bachelor-style apartment is approximately $1,081.

Movement within the city is cost-effective as well. A monthly pass for public transportation in Winnipeg is $107.80 for the average adult. Alternatively, commuting by car is viable, with monthly insurance averaging $110 and gas costs below the national average.

When it comes to groceries, the average monthly expenditure per person in Manitoba is among the lowest in Canada, totalling $425. Even childcare costs in Winnipeg are relatively economical, with average monthly expenses at $651 for infant care, $451 for toddler care, and $451 for preschool.

Cost of Living in Vancouver

In Vancouver, where the real estate market is notoriously expensive, renting often becomes the primary choice for residents due to limited home affordability. This high cost of housing places Vancouver in the same league as cities like Toronto. Here’s a breakdown of monthly rental costs:

• $1,378 for a bachelor-style apartment
• $1,543 for a 1-bedroom apartment
• $2,009 for a 2-bedroom apartment
• $2,441 for a 3-bedroom apartment

While rents in Vancouver and across British Columbia (BC) are high, the expenses for electricity and communication services fall below the national average. Vancouver sees an electricity cost of $122 (including taxes) for 1000 kWh, and for phone, TV, and internet, the cost is $174, making the high rents slightly more manageable. The average monthly cost for one person in a bachelor-style apartment is around $1,674.

In terms of transportation, navigating the city proves challenging for parking, making public transportation a popular choice. Monthly transit pass costs vary depending on the Vancouver zone, ranging from $104.90 to $189.45. If you opt for car ownership, expect an average insurance cost of $143 per month, coupled with one of the highest gas prices in Canada.

The monthly cost of food living in Vancouver averages around $454 per person. However, in the bustling Vancouver area, where people are often on the move, opting for dining out or takeaways may drive this cost higher, aligning with the overall elevated living expenses in the city.

Childcare costs in Vancouver align with those in other major cities like Toronto and Calgary, with an approximate monthly cost of $650 for one child. 

Final Thoughts on Cost of Living in Canada

Understanding the cost of living in Canada is pivotal for anyone contemplating a move to this diverse and vibrant country. 

From housing and transportation to daily expenses, being well-informed empowers you to make sound financial decisions. As we’ve explored the various factors contributing to the cost of living, it’s evident that while certain regions may be pricier. While urban centres like Toronto and Vancouver may boast higher costs, opportunities for employment and quality of life often balance the scales. 

By budgeting wisely, exploring affordable living options, and taking advantage of available resources, you can manage your expenses effectively in this diverse and vibrant country. 

So whether you’re considering a move or already calling Canada home, remember that with careful planning and resourcefulness, the cost of living can be manageable, allowing you to embrace all that this beautiful country has to offer fully.