From affordable housing in Alberta to high taxes in Quebec, perceptions about the cost of living in different regions are widespread. But are these assumptions accurate?
Sarah Lopes Rodrigues shared her financial struggles after moving from Vancouver to Calgary in July 2022, hoping for a more affordable lifestyle. However, the lower home prices and absence of sales tax in Alberta did not provide the expected relief. Ultimately, she found moving to Montreal in the summer of 2024 to be more beneficial, despite Quebec’s reputation for high taxes.
On the other hand, Benoît Bornais experienced an improvement in his financial situation after relocating from Quebec to Alberta in the summer of 2023.
Comparing affordability nationwide can be done through the “market basket measure,” which assesses the cost of essential items for a modest standard of living. This measure indicates that British Columbia has the highest cost, with Alberta following closely.
Quebec has the lowest cost of living measure, requiring approximately $47,133 for a modest lifestyle in 2024, compared to $56,059 in British Columbia, $55,041 in Alberta, and $54,981 in Ontario.
Income levels also play a significant role in affordability. Regions with higher wages tend to have higher costs, as residents can afford to pay more. Despite this, disposable incomes in Alberta remain notably higher than in other provinces, allowing residents to manage the higher daily expenses.
When it comes to housing affordability, Vancouver and Toronto are known for their high property prices. However, Edmonton and Calgary are highlighted as the most affordable markets among major Canadian cities. Alberta has been the top choice for Canadians relocating from other regions for three consecutive years, with significant residential construction activity.
In terms of grocery costs, prices have increased across Canada, with no significant regional variations. The proportion of food expenditure in household budgets is highest in Quebec, mainly due to lower costs in other categories. Transportation costs, including car insurance, can vary significantly between provinces, impacting overall living expenses.
Quebec stands out for its affordable utility costs due to abundant hydroelectric power, while other provinces face rate hikes and fluctuations in electricity prices. The cost of living varies widely across Canada, emphasizing the importance of considering multiple factors when assessing affordability in different regions.