How does your province rank in cost of living compared to the rest?
A recent study by personal finance expert savvynewcanadians.com found that Quebec is the most affordable province in Canada while British Columbia was the least affordable province. With five cities on the most-expensive list, Ontario was in the middle and came in at fifth place.
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. The data was sourced from Statistics Canada.
The information provides a snapshot of the current financial landscape of Canadian provinces, revealing the feasibility of families maintaining a comfortable lifestyle.
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. The average house price in Quebec is $457,314.
Prince Edward Island
Besides being one of Canada’s smallest and less populous regions, 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.
New Brunswick
Flaunting vast areas of natural attractions, New Brunswick’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).
Nova Scotia
Nova Scotia isn’t only beautiful and slow-paced but 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 than in other provinces, while food cost is relatively higher.
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 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 the unemployment rate is higher than the nation’s average 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. One can live comfortably without provincial sales tax or health premiums. In addition, low-income earners and seniors get transit passes that lower transport costs. Housing prices are considerably lower than the nation’s average, while rent is below $5,000 per month.
Manitoba
The cost of buying a house in Manitoba 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. In addition, the provincial sales tax is lower than in some Canadian provinces.
Saskatchewan
Saskatchewan has one of the most affordable housing costs, averaging $282,707. It also boasts cheap food prices, being Canada’s ‘breadbasket.’ Its thriving economy is driven by agriculture, oil, and manufacturing industries which makes it attractive to immigrants.
British Columbia
British Columbia (BC) is the least affordable Canadian province 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. High living standards exist, especially in large cities like Vancouver and Victoria.
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. Just two Ontario cities – Windsor (no. 6) and Kitchener (no.10) – made it to this list.
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. Five Ontario cities are amongst the most expensive and it’s not surprising that Toronto takes the second spot after Vancouver.
