Cost of Living in Canada: Salaries Required to Live in Canada's Major Cities

Charles Ingel - Friday, 26 April 2024 - Features

With each passing day, the cost of living is becoming more expensive for Canadians. As the prices of goods and housing increase, wages often don't keep up. We understand the importance of stretching your dollar and managing your budget as prices rise, salaries stagnate, and the housing market contracts. As many people consider moving for a cheaper cost of living, it’s valuable to know the salary needed in various Canadian cities to live comfortably. To that end, we investigated the salary needed in Canadian cities to both survive and to thrive.

The Salary Required to Survive in Each Major Canadian City

Living Wage in Canada

Toronto, Ontario

In Toronto, we found the living wage to be $104,208 for a family of four. The median cost of housing, adjusted by shelter Consumer Price Index (CPI) from 2021 is now $2,219 per month. The minimum salary needed for the year (adjusted with CPI) is $61,321.

Vancouver, British Columbia

In Vancouver, a living wage is $100,172. The median cost of housing is currently sitting at $2,060 per month. The minimum salary needed for the year (adjusted with CPI) is currently $61,837.

Calgary, Alberta

In Calgary, the living wage is presently $98,592. The median cost of housing is $2,037 per month. The minimum salary needed for the year (adjusted with CPI) sits at $61,886.

Ottawa, Ontario

In Ottawa, you’ll need a living wage of $91,312 to survive. The median cost of housing is $1,732 per month. The minimum salary needed (adjusted with CPI) stands at $60,117.

Montreal, Quebec

In Montreal, the living wage is $71,161 for a family of four. The median cost of housing cost; is $1,358 per month. The minimum salary needed, for the current year (adjusted with CPI) is $51,073.

Living Wage in Canada:

City	Living Wage	Salary Minimum	Housing Cost
Toronto	$104,208	$61,321	$2,219
Vancouver	$100,172	$61,837	$2,060
Calgary	$98,592	$61,886	$2,037
Ottawa	$91,312	$60,117	$1,732
Montreal	$71,161	$51,073	$1,358

Key Findings

Montreal residents have the lowest living wage of $71,161
The living wage is for a two-adult, two-child household.
Montreal also has the lowest cost of housing at $1,358 a month.
In Toronto, a yearly salary of $104,208 is needed for a comfortable life.
Toronto is the most expensive city to live on our list.
The minimum salary needed to not be below the poverty line in Toronto is $61,321.
In a dual-income household, a job loss could result in falling below the poverty line.
Ottawa has the lowest housing-to-income cost ratio, at 21 per cent.
This figure includes electricity and gas.
Toronto has the greatest at 26 per cent.
The Market Basket Measure (MBM) of the poverty line can be used as a baseline “minimum survival salary” or income target.

Cost of Living for Canadian Households by City

Nationwide, Canada’s median yearly full-time personal income is $62,420 as of 2023, whereas the average household expenditure is $72,940, adjusted from 2021 by CPI. The poverty line, or minimum salary needed across Canada, adjusted from 2022 by CPI, is $49,992.

On average, households are spending more than they earn.

The cost of groceries and eating at restaurants in major Canadian cities is fairly consistent, with a few fluctuations based on various taxes and transportation factors. The average cost of food expenditures for a household for a month adjusted by CPI from 2021 includes groceries ($774) and eating out ($207).

Cost of living in major Candian cities

Data and Methodology

Our study uses various data sets from Statistics Canada. Market Basket Measure (MBM) defines the poverty line based on the “cost of a basket of food, clothing, shelter, transportation, and other items for a family of four.” Other data sources to determine the living wage in each city include Ontario Living Wage, IRIS (Quebec), Policy Alternatives (Vancouver), and Living Wage Alberta.

Understanding the Data

Canada’s Consumer Price Index (CPI)is considered the most accurate measure of inflation as it reflects consumer spending habits, thus playing a crucial role in determining the income required for a sustainable lifestyle. The CPI is based on “food; shelter; household operations, furnishings and equipment; clothing and footwear; transportation; health and personal care; recreation, education and reading; and alcoholic beverages, tobacco products, and recreational cannabis.”

The CPI rose 2.9 per cent year on year in January 2024, after an increase of 5.9 per cent in the prior period. The CPI of “shelter” or housing costs rose 6.2 per cent in January 2024, and 6.6 per cent in the prior period, putting the squeeze on the cost of housing affordability. For groceries, there was an increase of 3.4 per cent in January 2024, and 11.4 per cent in 2023. Similarly, the cost of eating out also rose 5.1 per cent in 2024 and by 8.2 per cent in 2023.

While the CPI varies from city to city we use the nationwide averages in our calculations. The study only takes into account a household of two adults and two children, so other household configurations will have different costs. For instance, single households, while spending less on most items, will need to spend more of their income on housing if not sharing with others.

Sources

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