The Cost of Living in Vancouver vs Toronto - Which is Cheaper?

Whether you’re a seeker of the hustle and bustle, adventure and outdoors, the scenic drives and views, or a seeker of leisure activities, Canada has the whole package for you.

Like every other city, no two cities are alike when it comes to cost of living, and there is no perfect city since individuals have a myriad of personal preferences. The cost of living in Vancouver and Toronto has its advantages and disadvantages, but still offers citizens its own distinctive features to explore.

However, there are certain factors that can help us deduce which city would offer a better quality of life in Canada, along with an affordable cost of living. Let’s take a deeper look at these factors.

According to Numbeo, a reputable cost of living database, you can maintain a decent cost of living in Toronto with roughly the same cost of living in Vancouver. You’ll be paying around $7,500.00 in Vancouver, while you would need approximately $6,993.72 in Toronto.

The data below represents the cost of living in Vancouver vs Toronto, and it includes the rent index and net earnings (after tax deductions). To get an accurate overview of the cost of living in these two Canadian cities, we’d have to analyze factors such as overall consumer prices - which encompass rent prices, restaurant prices, grocery prices and local purchasing power.

Like all consumer prices, these are subject to change, depending on the city’s economic performance and growth.

External factors that directly affect a city’s economy are crime and corruption, lack of employment opportunities and social and political challenges. Remember, these numbers can change within an instant, and in turn, impact citizens significantly.

Consumer Prices Comparison

However, as per Numbeo, these are the current consumer prices in Vancouver vs Toronto:

Now, let’s take a closer look at the factors being compared, and what it means for people living within that particular city:

What is Local Purchasing Power?

This refers to the money that is available or accessible to people within a city. In this case, the local purchasing power in Toronto is higher than in Vancouver, which means people have less money in Vancouver available to them. So, what exactly does this mean for Vancouver citizens? If the purchasing power is lower, it means that people are buying less for a number of reasons - prices may be too high or the salaries may be less after tax deductions.

If the purchasing power is higher, as shown in Toronto, it shows that Toronto citizens have more money available to them. This suggests that people within Toronto are able to buy more consumer products since it may be cheaper. Additionally, people may be left with a higher salary after tax deductions, which means there’s more money to play around with.

Rent Prices

The table above also compares the rent prices within Toronto vs the rent prices in Vancouver. As we can see, the data shows that rent in Toronto is lower than in Vancouver, why is this the case? The global pandemic affected everyone across the world, causing the prices, including rent, to skyrocket. Additionally, there are other factors such as more people moving out from their parents’ home and wanting to live on their own.

Additionally, more people are becoming homeowners since housing prices dropped during the pandemic throughout the world. This cancels out other potential homeowners who no longer have the cash upfront, and end up renting for longer than usual. As a result, landlords have raised rent prices, causing an overall higher rent within a city.

According to the Washington Post, some companies, cities/territories and states imposed limits on their rent increases. Some have even frozen prices. However, the relaxation of the pandemic has caused these measures to expire, and in some cases, given landlords more leverage to increase two years’ worth of rent.

Groceries Prices

Based on the table, the prices of groceries that are most commonly in-demand are being compared. We can see that they’re lower in Toronto than in Vancouver. Possible factors like high oil prices within a city, or even Russia's activity within Ukraine as of late February plays a vital role in the increased food prices.

According to Reuters, Russia and Ukraine are responsible for two-thirds of the world’s export of sunflower oil, while Ukraine ranks number four for world’s corn exporter. While these factors may not be the only cause for rising food prices, they’re still major influential factors that’s bound to impact citizens.