Do you know which province is truly leading in affordability in Canada? Or how does your province rank in cost of living compared to the rest?
Well, we all know that prices have skyrocketed right across Canada over the last 20 years, and over the last decade, prices in cities like Toronto, Vancouver and Victoria have become so outlandish that many can’t even afford to live there based on a salary well above minimum wage, so, how does your province fair, and what cities are the least and most experienced places to live in Canada, well if you’d like to know, let’s take a closer look.
A recent study by personal finance expert savvynewcanadians.com found that Quebec is the most affordable province in Canada, with an estimated income-to-expense ratio of 1.5. The average estimated expenditure per household in Quebec is $59,770, while the median after-tax income for an economic family is $89,400.
Feature image by James Wheeler
At the bottom of the list, British Columbia was found to be the least affordable province, with an income-to-expense ratio of 1.23. The average estimated expenditure per household in British Columbia is $79,591, while the median after-tax income for an economic family is $97,800.
These conclusions were drawn based on a comprehensive analysis of the estimated income-to-expense ratio, average estimated expenditure per household, and median after-tax income for economic families in each province.
Savvy New Canadians evaluated all provinces in Canada using these distinct criteria, assigning an affordability score for each. The data was sourced from the government website Statistics Canada. This information provides a snapshot of the current financial landscape of Canadian provinces, revealing the feasibility of families maintaining a comfortable lifestyle.
10 Most Affordable Places to Live in Canada
|
Affordability Ranking |
Provinces |
Estimated Income to Expense Ratio |
Average estimated expenditure per household (Total current consumption, $) |
Median after-tax income for economical family ($) |
|
1 |
Quebec |
1.5 |
59,770 |
89,400 |
|
2 |
Prince Edward Island |
1.41 |
58,183 |
82,000 |
|
3 |
New Brunswick |
1.36 |
59,753 |
81,500 |
|
4 |
Nova Scotia |
1.36 |
61,367 |
83,500 |
|
5 |
Ontario |
1.34 |
73,805 |
99,100 |
|
6 |
Newfoundland and Labrador |
1.32 |
60,345 |
79,700 |
|
7 |
Alberta |
1.31 |
81,992 |
107,500 |
|
8 |
Manitoba |
1.28 |
67,040 |
85,700 |
|
9 |
Saskatchewan |
1.26 |
73,237 |
92,300 |
|
10 |
British Columbia |
1.23 |
79,591 |
97,800 |
Quebec:
Quebec tops the list as the most affordable province in Canada. It has a relatively low cost of living, mainly due to cheap housing and subsidized childcare and education systems. So you’ll spend around $10 per day on childcare, while university students save 25% in tuition fees compared to their counterparts in Ontario.
The average house price in Quebec is $457,314. Residents also pay the lowest electricity rates ($0.073/kWh) since the province generates hydroelectricity.
The region boasts a healthy job market, with an unemployment rate of 4.1% (compared to the national rate of 5.2%), despite a high total tax rate (14.975%).
Prince Edward Island
Besides being one of Canada’s smallest and less populous regions, Prince Edward Island (PEI) is among the most affordable places to live. It has a low cost of living, while residents enjoy a comfortable lifestyle.
Buying a house in PEI costs about 50% less than the nation’s average price. Alternatively, you can rent an apartment between $1,055 to $2,000 per month. Buying groceries is also cheaper since agriculture is one of the island’s thriving industries.
Although PEI’s unemployment rate (7.2%) is slightly higher than the overall rate of 5.2%, residents can find job opportunities in the island’s industries.
New Brunswick
Flaunting vast areas of natural attractions, New Brunswick is another affordable place to live in. The province’s low cost of living is mainly due to relatively cheap food and housing prices. It has the lowest average home price ($286,689) in Canada and is the easiest region to acquire land.
Additionally, residents enjoy tax benefits and rebates like the New Brunswick Child Tax Benefit (NBCTB). Plus, education is free to the high school level, and post-secondary students can access financial aid through bursaries, loans, and grants.
Nova Scotia
Nova Scotia isn’t only beautiful and slow-paced but a cheap place to live. You’ll stretch your money further in this Maritime province, especially in smaller cities and towns.
The region’s real estate space is relatively lower compared with other provinces like British Columbia and Ontario. You’ll spend less than $500,00 to buy a house, while monthly rent can be below $1,500.
The median income is slightly lower in Nova Scotia than in other provinces, while the cost of food is relatively higher. But you’ll spend less on entertainment and utilities like electricity, water, and garbage collection.
Ontario
Toronto, Ontario’s largest city, is expensive, mainly due to its high housing costs. But smaller cities and rural areas have a low cost of living. For instance, you can pay a monthly rent of $1,200 (or less) in smaller towns like Rainy River and Sudbury.
Ontario’s unemployment rate (4.9%) is notably lower than the nation’s average. That’s because this region has vibrant industries like automobile manufacturing, technology, and mining. Hence, you’re likelier to land a job in Ontario, earn a decent income, and enjoy a higher quality of life than in other Canadian provinces.
Newfoundland and Labrador
Besides being beautiful and safe, Newfoundland & Labrador is an affordable place to live. Residents enjoy a high quality of life, mainly in healthcare, education, and housing.
The province comes second in the lowest housing prices, averaging below $300,000. In addition, electricity, entertainment, and transport costs are lower than Canada’s average. But Newfoundland & Labrador’s unemployment rate is higher than the nation’s average. And that’s because there are fewer job opportunities for unskilled workers.
Alberta
Alberta boasts a good job market, as seen in its low unemployment rate and high median household income. Hence, most residents have more disposable income to meet their daily expenses. However, some utilities, like food and electricity, are on the upper side.
Still, one can live comfortably in Alberta without provincial sales tax or health premiums. In addition, low-income earners and seniors get transit passes that lower transport costs. Alberta’s housing prices are considerably lower than the nation’s average, while rent is below $5,000 per month.
Manitoba
Manitoba is one of the Canadian provinces where you’ll access the good things in life at an affordable price. Firstly, the region generates hydropower. So you’ll pay less for electricity (0.099/kWh). And the cost of buying a house is approximately 50% less than the Canadian average.
Manitoba’s government ensures residents have more disposable income by offering aid, such as family affordability packages. There’s also free public health and education. In addition, the provincial sales tax is lower than in some Canadian provinces.
Saskatchewan
Canada’s ‘sunniest’ province also makes it to the list of cheap places to live. Saskatchewan has one of the most affordable housing costs, averaging $282,707. It also boasts cheap food prices, being Canada’s ‘breadbasket.’
The province has a high employment rate, free healthcare, and quality education. Its thriving economy, driven by agriculture, oil, and manufacturing industries, makes Saskatchewan attractive to immigrants.
The only downside is that Saskatchewan’s electricity rates (0.181/kWh) are slightly above the country’s average.
British Columbia
British Columbia (BC) is the least affordable Canadian province on this list, having the second-highest cost of living estimate. Buying a house in BC costs a fortune, as prices exceed the country’s average. However, housing, food, and gas prices are lower in less popular cities like Marpole and Surrey.
With an unemployment rate slightly lower than Canada’s average, finding a job in BT is easy. High living standards exist, especially in large cities like Vancouver and Victoria.
5 Cheapest Cities in Canada
|
Rank |
City |
Cost of Living Index |
|
1 |
Regina, Saskatchewan |
83.4 |
|
2 |
Quebec City, Quebec |
88.5 |
|
3 |
Saskatoon, Saskatchewan |
89.6 |
|
4 |
Winnipeg, Manitoba |
89.8 |
|
5 |
Red Deer, Alberta |
90 |
Regina, Saskatchewan, is the cheapest city in Canada, having an 83.4 cost of living index. Since the country’s cost of living estimate is 100%, Regina’s cost of living is 16.6% below Canada’s.
5 Most Expensive Cities in Canada
|
Rank |
City |
Cost of Living Index |
|
1 |
Vancouver, British Columbia |
121.3 |
|
2 |
Toronto, Ontario |
118.6 |
|
3 |
Victoria, British Columbia |
117.4 |
|
4 |
Markham, Ontario |
114.5 |
|
5 |
Nanaimo, British Columbia |
108.6 |
Vancouver, British Columbia, is the most expensive city, with a cost of living index of 121.3. Hence, its cost of living is 21.3% higher than the nationwide average.
How does your province fare, and were you in the most expensive or least expensive city to live in? For me, I have to admit I was rather surprised that Toronto didn’t top the list, and as someone who lives in the city, I know firsthand how expensive this city has become, but that Vancouver is even more costly to live in, by almost 3 points, makes me very concerned for those living there.
So, as the cost of living continues to rise much fast than that of wages, it may be good to know where you might be able to get the best bang for your buck, as they say.
markmunroe
Latest posts by markmunroe (see all)
- 9 Amazing National Parks You’d Want to Visit - April 28, 2024
- How is technology revolutionizing accounting? - April 27, 2024
- Top tips to go on a road trip with friends - April 25, 2024