Vancouver and Toronto’s cost of living is the most crucial aspect when determining which city is better. Both these cities have their own unique charm and are equally desirable when people decide to move to Canada.
Looking at their qualities, both cities have a vibrant and multicultural feel to them. They’re specifically clean, safe, and secure.
Toronto is Canada’s business capital, and several renowned companies have their headquarters here. On the other hand, Vancouver consists of North America’s fastest-growing tech industry, covering Silicon Valley and Toronto.
Vancouver and Toronto’s cost of living
Now, keeping aside the common qualities, let us talk about the cost of living prevalent in these two cities. Since every city has its distinct attributes, the cost of living also differs from one another.
According to Numbeo, individuals will require at least $7,500 in Vancouver and around $6,993.72 in Toronto.
To get a complete analysis of the cost of living in these two cities, it is essential to acknowledge all factors, including rental charges, grocery expenses, restaurant costs, and local purchasing capacity.
Moreover, all these factors will change gradually based on each city’s economic development and performance growth.
Besides this, there are other vital factors that are external and can literally impact a city’s economy. Criminal activities and the percentage of corruption, reduced employment opportunities, and political instability are all factors that can significantly change the face of any city.
Toronto VS Vancouver- comparing their Consumer Prices
Presently, the Consumer Price Index in Toronto and Vancouver are as follows (according to Numbeo):
- Toronto’s Consumer Price is relatively lower than Vancouver’s by 3.33 percent, excluding the rent.
- The Consumer Price in Toronto with the rent is lower than in Vancouver by 6.75 percent.
- Toronto’s rental cost is comparatively lower than Vancouver’s by 12.05 percent.
- The restaurant’s expense is 7.69 percent lesser than Vancouver’s.
- Toronto comprises a 6.77 percent reduced cost of groceries compared to Vancouver.
- Moreover, this city’s local purchasing capacity is 11.33 percent more than Vancouver’s.
Local purchasing potential of people
Toronto’s local purchasing capacity is higher than Vancouver, which implies that the local people here have an increased amount of money available or accessible to them. Meanwhile, in Vancouver, the locals do not have a very high purchasing capacity compared to T0ronto. Now, suppose a city has a reduced purchasing potential. In that case, it indicates that people either buy less due to reduced salaries (after tax deduction) or the expenditure might be really high.
Similarly, like Toronto, if the city has a higher purchasing capacity, it indicates that the citizens have more money accessible. Hence, they can buy more products as the consumer goods are relatively cheaper. The next possibility could be that they’re receiving higher salaries, even tax deductions. Furthermore, they have more money left with them to purchase extra things.
Rental costs in Vancouver and Toronto
Understanding the rental cost in Vancouver and Toronto, it is evident that Toronto has a reduced rental price compared to Vancouver. Why is this the case? The pandemic is one of the most significant reasons behind the reduced costs, specifically the rental cost. Other vital reasons could be an increased number of children leaving their parental house and living on rent independently.
Additionally, an increasing number of individuals are buying their own homes since housing prices fell during the COVID-19 phase across the globe. Moreover, this doesn’t leave any chance for those homeowners who don’t have much cash available. These house owners tend to stay on rent for a considerably long time. Consequently, landlords also increased their rental costs, making people pay a higher rental amount across the city.
Per official reports, several cities, states, and territories restricted the rental increase. Others also froze the rental costs. Presently, the landlords have the privilege to raise the rental price worth nearly two months. This change has come about due to the pandemic phase getting back to normal and most of the above initiatives ending.
Vancouver and Toronto’s cost of living- the price of groceries
As for the price of groceries in these two cities, Toronto has a reduced cost of groceries compared to Vancouver. There could be various factors behind this, but the major one appears to be the oil price prevalent in the city. Additionally, even the conflict between Ukraine and Russia could have had a severe impact on the prices of food. This is why food costs have risen since the conflict occurred between the two countries.
Several reports claim that Russia and Ukraine have impacted around two-thirds of the world in terms of Sunflower oil, with Ukraine being the top corn exporter globally. Although other factors might lead to the rise of food prices, these two factors are also responsible for the increased cost.
Consumer prices
Consumer prices revolve around the prices of all products that are consumer-driven. These include several factors, such as household groceries, food costs at restaurants, utilities, and transportation prevailing in a city. According to data, Toronto has a reduced consumer price compared to Vancouver by 3.33 percent.
Overall, inflation and deflation are primary tools essential for assessing a city’s economic growth. As observed, Toronto has been able to maintain a healthier level. Furthermore, any town with higher interest rates indicates that borrowing money will be costlier. As a result, fewer individuals will purchase goods or products, causing inflation. Contrarily, if the city has lower interest rates, it implies that citizens continue to buy more goods, thereby keeping the inflation rate stable.
Toronto has a great quality of life because of its ability to recover from the pandemic faster, its innovative mindset, and its ability to combat challenges.
Toronto and Vancouver are generally expensive cities in Canada. However, comparing the two in terms of their affordability, Toronto is certainly less expensive than Vancouver.
For those looking forward to immigrating to Toronto, the most affordable neighborhood areas are as follows (with the reasons):
| Toronto Neighborhoods | Starting Rental Price Per Month (average) | Neighborhood Attributes |
|---|---|---|
| Mimico – New Toronto | $820 | The Humber River trail close by offers luxury and entertainment facilities. Popular grocery stores such as No Frills and Royal York prevail here. The area is also safe and secure. This means raising kids is worth it here due to the availability of several excellent schools. |
| Rexdale | $887 | This place provides a harmonious environment and a closely-knit community with numerous luxury shopping malls such as Rexdale Shopping Mall and Woodbine Mall. Moreover, the area is in close proximity to Rexdale Commercial Centre, and the neighborhood offers a variety of extraordinary cuisines. For instance, Indian food and Caribbean options. |
| Keelesdale – Eglinton West | $897 | Diverse housing styles with low rentals and several shopping centers are close by, offering affordable groceries. Also, this area is a blend of cheerfulness and serenity. |
| Guildwood Village, Scarborough | $950 | An astonishing lakefront, making it the best alternative for nature lovers. Picturesque with both detached and semi-detached houses. Additionally, students can access the best and most convenient route to reach the University of Toronto. |
| Weston | $960 | Individuals can rejoice in Victorian-style and Edwardian-style dwellings at an affordable rate. This area is well-established as a commercial hub for several companies and businesses. It is also an innovative merging of antique homes and modern-day apartments. |
| Black Creek | (On average) $1,011 | The Black Creek is home to numerous multi-story apartment complexes with less costly rent for bedrooms (one to three), with balconies. The area is in the vicinity of coffee shops and is an excellent option for coffee lovers. Besides this, it also offers restaurants and other services. |
| East York | $1,082 | This area comprises some well-renowned and elite families residing in Toronto. Popular for the Danforth event, Canada’s largest street festival. Chorley Park is a place for dogs because of its friendly ambiance. |
| Scarborough City Centre | $1,067 | It displays high-rise apartments, which are nearby malls and industrial as well as commercial areas. This area presents us with modest cafes and cuisines with an internationally exquisite taste and variety. |
| Liberty Village | $1,671 is the average cost. Liberty Village’s (east end): $150 to $200 per month | The Liberty Village is just a 10-minute driving distance from the Town. The area is primarily home to condos and flats. It is best suited for those seeking a calm and flexible atmosphere, separate from the hustle and bustle of the Town. |
Vancouver VS Toronto – a conclusion
Overall, comparing Vancouver and Toronto’s cost of living, it is evident that Toronto is a better choice for people who want to immigrate to Canada. The city is vast, with a diverse range of neighborhood areas, offering convenient travel routes, excellent schools, cafes, restaurants, and commercial industries.
