When it comes to the cost of living in different regions of Canada, there are common beliefs about affordability, like the one about Alberta’s housing market and Quebec’s high taxes. But do these assumptions hold true?
Sarah Lopes Rodrigues shared her experience of moving from Vancouver to Calgary in July 2022 to save money due to Alberta’s perceived affordability. However, she found that lower home prices and no sales tax weren’t enough to offset her financial struggles.
Conversely, Benoît Bornais experienced an improvement in his finances after moving from Quebec to Alberta in the summer of 2023.
One way to compare affordability nationwide is through the “market basket measure,” which assesses the cost of a set basket of essentials like food, clothing, and shelter.
The cost of this essential basket is highest in British Columbia, followed by Alberta and lowest in Quebec. In 2024, a modest living for an average household required $47,133 in Quebec, $56,059 in British Columbia, $55,041 in Alberta, and $54,981 in Ontario.
However, these figures don’t fully represent the cost disparities between urban and rural areas within each province.
Income levels play a significant role in affordability. Regions with higher wages generally have higher costs because residents can afford to pay more, according to Charles St-Arnaud, the chief economist at Servus Credit Union.
Excluding the territories, Alberta boasts significantly higher disposable incomes compared to other provinces, allowing residents to cope with the higher cost of living.
But this advantage is diminishing, as wages in Alberta are approaching those of British Columbia and Ontario, leading to a decline in purchasing power for Albertans, as per St-Arnaud.
Alberta: A Haven for Affordable Housing?
Housing expenses form a substantial part of monthly budgets for most Canadians. While Vancouver and Toronto are known for high property prices, which cities offer more affordable housing options?
Mathieu Laberge, the chief economist at Canada Mortgage and Housing Corporation (CMHC), emphasizes that affordability hinges on three factors: the actual cost, affordability based on income, and availability of housing.
In addition to ownership and rental costs, the CMHC considers residents’ incomes and housing availability, including unsold properties and rental vacancy rates.
Hannah MacDonald’s decision to leave her studies in Nova Scotia and return to Prince Edward Island in March 2023 highlights the challenges of living in costly cities like Halifax.
Halifax’s rental market has become one of the most expensive in Canada post-pandemic, with average rents exceeding $2,200 in December, according to data from Rentals.ca and Urbanation.
Remote work options during the COVID-19 pandemic prompted many individuals to relocate from major urban centers to more affordable regions.
Laberge notes that individuals with high-paying jobs in cities like Vancouver or Toronto can now benefit from lower living costs in smaller cities such as Halifax or rural areas of Ontario, Quebec, and the Prairies. This migration has driven up both rental and housing prices in these regions.
For those looking to purchase a property, Edmonton and Calgary stand out as the most affordable markets among major Canadian cities, partially due to their lower population density