Most Expensive Cities in Canada in 2026

The most expensive city in Canada is Iqaluit, where the cost of living is 45% above the national average. While Toronto is ranked among the best places to live, it's also the 6th most expensive city in Canada.

The article below explores the economic data for major cities across every province, so you can see exactly what residents pay for housing, food, transportation, recreation, and more.

Most expensive cities in Canada: Overview

We tend to associate a higher cost of living with high-population centres, but this isn't always the case. After comparing the 18 most populous towns and cities across six regions, we discovered the 10 most expensive places to live in Canada.

In this table, the 1-10 ranking is highest/most expensive to lowest/least expensive:

We cover each city's statistics in detail below and examine what makes them so pricey, moving from the most to the least expensive region in Canada.

Most expensive cities in the Northern Territories

Photo by Rigo Olvera

Iqaluit, NU

• Population (2021): 7,429

• Cost of living (2025): 45% above national average, 2% above territorial average
• Average cost to own (2021): $2,820 per month
• Average rent (2021): $1,550 per month

The most expensive place to live in Canada is also one of the smallest: Iqaluit. The cost of living is over 45% higher than the national average, and 2% higher than in other communities in Nunavut, the Northwest Territories, and the Yukon.

As you can imagine, the problem isn't a high population; it's shipping. Iqaluit has the highest food prices of any other provincial or territorial capital in Canada, standing 37% higher than the national average.

The high cost of shipping affects everything from housing materials to labour, making it all the more frustrating that we found so few statistics on the cost of living in the north.

Yellowknife, NT

• Population (2021): 20,340

• Cost of living (2025): 37% above national average, -2% below territorial average
• Average cost to own (2021): $2,358 per month
• Average rent (2021): $1,804 per month

As in Iqaluit, the high cost of shipping makes life in Yellowknife that much more expensive. Per Statistics Canada's 2024 numbers, it takes a family in Yellowknife nearly 20% more income to meet basic needs than if they lived in Vancouver.

Whitehorse, YT

• Population (2021): 28,201

• Cost of living (2025): 22% above national average, 2% above territorial average
• Average cost to own (2021): $1,754 per month
• Average rent (2021): $1,474 per month

Whitehorse is perhaps the most affordable city in Canada's northern territories. Although it costs a lot to ship goods to Whitehorse, the Yukon Anti-Poverty Coalition estimates the cost of food in the territory's capital to be at least 10% lower than in surrounding communities.

Even so, at 22% higher than the national average, the cost of living in Whitehorse is considerable. The costs of household operations and recreation are particularly high, with both categories ranking as the second highest in the country.

Most expensive cities in B.C.

Photo by James Wheeler

Vancouver, BC

• Population (2021): 2,642,825

• Cost of living (2025): 43% above national average, 32% above provincial average
• Average cost to own (2021): $1,978 per month
• Average rent (2021): $1,624 per month

Nobody will be surprised to learn that the most expensive place to live in British Columbia is the Greater Vancouver area. Combining runaway housing prices with rising car insurance premiums, it costs a lot to secure a spot in Vancouver, where land is in short supply.

On the plus side, Vancouver's density means there's plenty of competition for food and services, which helps keep costs relatively low. Because it's a major shipping hub, goods and people can easily travel to and from the Terminal City by road, rail, water, and air – but expect to pay a lot for the convenience.

Victoria, BC

• Population (2021): 397,237

• Cost of living (2025): 24% above national average, 14% above provincial average
• Average cost to own (2021): $1,586 per month
• Average rent (2021): $1,378 per month

It may not be cheap, but living in Victoria is certainly pretty – residents grew and registered over 30 billion flowers in the 2025 Greater Victoria Flower Count. Like Vancouver, the city's housing prices are badly affected by the dwindling amount of land; the average price to rent a 2-bedroom unit in 2025 was $2,800 per month.

Kelowna, BC

• Population (2021): 222,162

• Cost of living (2025): 18% above national average, 9% above provincial average
• Average cost to own (2021): $1,556 per month
• Average rent (2021): $1,542 per month

Besides the high cost of living, there's another reason to think twice before settling in Kelowna – according to our data, it ranks as the 6th most dangerous city in Canada. The city experienced 494.3 break-ins per 100,000 residents in 2023. This is not only a frightening statistic but a costly one as well, since it drives up the cost of car and home insurance.

Most expensive cities in Ontario

Photo by Roberto Nickson

Toronto, ON

• Population (2021): 6,202,225

• Cost of living (2025): 34% above national average, 24% above provincial average
• Average cost to own (2021): $2,108 per month
• Average rent (2021): $1,618 per month

A six-figure salary is nearly a must-have to live in the Big Six – in 2021, a whopping 30.5% of Toronto residents spent 30% or more of their income on shelter. For comparison, only 15.8% of folks do the same in Sault Ste. Marie, which is one of the cheapest places to live in Ontario.

Instead of adding yet another theory on the state of Toronto's housing market to the pile, we'll end with a silver lining. Thanks to its strong job market, public transit, and healthcare system, Toronto remains one of the best places to live in Canada.

Ottawa, ON

• Population (2021): 1,488,307

• Cost of living (2025): 23% above national average, 14% above provincial average
• Average cost to own (2021): $1,562 per month
• Average rent (2021): $1,296 per month

Like Toronto, Ottawa is a magnet for Canadians seeking employment, education, and culture. When these demands meet a low supply of housing, rising transit costs, and insufficient minimum wages, the result is a high cost of living.

Kitchener-Cambridge-Waterloo, ON

• Population (2021): 575,847

• Cost of living (2025): 19% above national average, 10% above provincial average
• Average cost to own (2021): $1,612 per month
• Average rent (2021): $1,352 per month

From 2013 to 2023, the price of a single-family home in Kitchener-Waterloo grew by 159%. Still, as we've seen in recent years, housing prices can fluctuate wildly, so there is the possibility that housing prices could stabilize in the future.

Most expensive cities in the Prairies

Photo by Lisa Simpson

Calgary, AB

• Population (2021): 1,481,806

• Cost of living (2025): 20% above national average, 15% above provincial average
• Average cost to own (2021): $1,802 per month
• Average rent (2021): $1,416 per month

Although gas is cheap in Calgary, car insurance sure isn't. Stats Canada reports that auto insurance premiums are among the highest in the country, partially due to extreme weather events and the fact that Albertans have one of the highest average cars per household at 1.4 each. You may just want to trade your car for a bike when you move to the jewel of the prairies.

Edmonton, AB

• Population (2021): 1,418,118

• Cost of living (2025): 10% above national average, 5% above provincial average
• Average cost to own (2021): $1,720 per month
• Average rent (2021): $1,328 per month

At the risk of sounding repetitive, Edmonton's two biggest expenses are housing and transportation. Utility costs are considerable too, especially electricity, no doubt a direct effect of Alberta's frigid winter temperatures.

Winnipeg, MB

• Population (2021): 834,678

• Cost of living (2025): 8% above national average, 12% above provincial average
• Average cost to own (2021): $1,342 per month
• Average rent (2021): $1,140 per month

Although Winnipeg is the third-most expensive city in the Prairies, there's a large gap between it and its Albertan counterparts. Winnipeggers enjoy significantly lower housing costs – average monthly rent is 20% lower than Calgary and 14% lower than Edmonton, and homeownership is 26% and 22% lower, respectively.

Most expensive cities in the Atlantic

Photo by Graham-H

Halifax, NS

• Population (2021): 465,703

• Cost of living (2025): 12% above national average, 15% above provincial average
• Average cost to own (2021): $1,368 per month
• Average rent (2021): $1,246 per month

You'll find beautiful ocean views in Halifax, but that picnic on the beach will cost you. The Canadian Consumer Price Index (CPI) measures inflation by comparing the present-day prices of various items to past prices. In December 2020, the CPI for food in Nova Scotia was 156.9 – in 2025, it averaged 204.8. In other words, food prices increased by 30.5% in the past five years alone.

Fredericton, NB

• Population (2021): 108,610

• Cost of living (2025): 6% above national average, 15% above provincial average
• Average cost to own (2021): $1,092 per month
• Average rent (2021): $1,057 per month

It may be the smallest city in New Brunswick by population, but Fredericton still has the highest cost of living in the province. A provincial study from 2024 reported that Fredericton residents spent $1,411.41 on food each month, while other cities in the province spent between 2.5% and 6% less.

This same study also stated that a living wage of $25.88 per hour was required to live here, vs. $24.07 in Moncton and $24.07 in Saint John.

Saint John, NB

• Population (2021): 130,613

• Cost of living (2025): 2% above national average, 11% above provincial average
• Average cost to own (2021): $1,104 per month
• Average rent (2021): $862 per month

The city's own website states that the median household income in Saint John is $68,700, and that the median home price is a reasonable $168,000. What's not mentioned is the cost to heat and maintain these homes. Much of the city's housing stock is aging, meaning poor insulation and outdated systems are common — and expensive to run, especially in the harsh New Brunswick winters.

Most expensive cities in Québec

Photo by Céline Chamiot-Poncet

Montreal, QC

• Population (2021): 4,291,732

• Cost of living (2025): 20% above national average, 25% above provincial average
• Average cost to own (2021): $1,420 per month
• Average rent (2021): $981 per month

Provincial income tax and sales tax are part of why it's expensive to live in Montreal. Quebec has the highest provincial income tax rates in Canada, which meaningfully reduces take-home pay for Montreal residents. Plus, the combined sales tax here is 14.975%, which means every purchase from groceries to clothing to restaurant meals costs noticeably more than in lower-tax provinces – like Alberta, for instance, with its 5% sales tax.

All this being said, Montreal residents aren't without relief: a federal tax abatement reduces their federal tax bill by 16.5%, softening the blow somewhat.

Québec, QC

• Population (2021): 839,311

• Cost of living (2025): 6% above national average, 11% above provincial average
• Average cost to own (2021): $1,199 per month
• Average rent (2021): $904 per month

Given the current Canadian housing crisis, Québec's rock-bottom real estate prices have become the topic of much speculation and envy. Proposed theories include lower land development charges, a greater proportion of medium-density housing, and the efficiency of the Tribunal Administratif du Logement (TAL)in balancing tenant and landlord rights.

The only thing that's clear is that it costs less to live in Canada's only Francophone province. That said, some critics warn that Québeckers are also more likely to make lower incomes and live in smaller, older units.

Trois-Rivières, QC

• Population (2021): 161,489

• Cost of living (2025): 1% below national average, 3% above provincial average
• Average cost to own (2021): $951 per month
• Average rent (2021): $672 per month

While Trois-Rivières does indeed have a high cost of living, it seems to be improving. In 2016, 18.9% of households in this city spent more than 30% of their income on housing and shelter costs, but this went down to just 12.5% in 2021.

Methodology

To measure affordability, we compared three to seven indicators across housing, food, transportation, household operations, and recreation in the three most-populated census metropolitan areas, agglomerations, and subdivisions in each province/region.

From most to least used, we sourced data from:

• Statistics Canada
• Canadian Real Estate Association (CREA)
• The Economic Research Institute (ERI)
• Indeed

Where data was missing (especially in the northern territories), we used reports from various sources, including the Insurance Corporation of British Columbia, the Canadian Radio-Television and Telecommunications Commission, and Canada Post.

Each town or city received points in each category based on its ranking relative to its neighbours. We then weighted the scores according to the category's importance to the average Canadian budget: 31.4% for housing, 15.4% for food, 15% for transportation, 8.3% for household operations, and 6.3% for recreation, with the general cost of living (as calculated by the ERI) making up the remaining 23.6%.

Why are some cities so expensive?

According to Statistics Canada, the five biggest contributing factors to the cost of living are:

• Housing
• Food
• Transportation
• Household operations
• Recreation

In 2023, the average Canadian spent:

• 32.1% of their budget on housing, including rent and mortgage payments
• 15.8% of their budget on transportation, including leasing and purchasing vehicles; insurance premiums, gasoline, and repairs and maintenance
• 15.7% of their budget on food, including food purchased from stores and restaurants
• 7.8% of their budget on household operations, including communications, childcare, and home services
• 6.8% of their budget on recreation, including most non-essential consumer goods, recreational vehicles, and travel

The same year, each Canadian spent about $24,671 on housing, $12,046 on food, and $12,090 on transportation. Together, these factors account for over 75% of our living expenses – and they've only been going up.

The Consumer Price Index (CPI), which tracks inflation, reported an overall average increase of 2.6% in 2025, with housing costs rising by 2.6% and transportation by 1.5% over the previous year. Although gasoline prices rose 1.9% over the previous month in September 2025, gasoline prices were 4.1% lower than the previous year.

Bonus: the bottom 5 in 5 categories

While useful, the average Canadian budget doesn't reflect every Canadian's personal taste. If housing, food, transportation, household operations, or recreation matters more to you than every other category, here are the cities to avoid.

Most expensive housing: Victoria, BC

While Victoria housing prices aren't the highest in the country, people spend a higher percentage of their income on housing here than in any other city in Canada. Yellowknife has the highest mortgage/homeownership and rental costs, but these costs make up considerably less of residents' income than in Victoria.

^{* Owner-estimated}

Most expensive food: St. John's, NL & Vancouver, BC

St. John's and Vancouver are tied for having the most expensive food costs. While Vancouver's average cost to feed a family of 4 is slightly higher than St. John's, the east coast city has a higher CPI than its west coast counterpart.

Also noteworthy is Saskatoon's extremely high food CPI. If you plan to move to this prairie city, be prepared to budget considerable amounts for grocery shopping.

It's logical to assume that Iqaluit has very expensive food costs, and may even have the highest costs in Canada. But we couldn't find statistics for the average food CPI for this area, so we left it out of the running.

Most expensive transportation: Iqaluit, NU

Iqaluit pays the most for gas, though annual car insurance is lower than other cities with expensive fuel.

Experts say high taxes, a lack of local refineries, and a strict requirement for greener fuel drive up gas prices along the West Coast. A recent fire at the PBF Energy Martinez refinery in San Francisco means prices in Vancouver and Victoria are likely even higher now than what you see below.

Most expensive household operations: Iqaluit, NU

Whether due to a robust union or a labour shortage, it costs more to hire workers in some towns and cities than others. The average hourly rates for skilled trade workers in each city give us an idea of how expensive it is to run a household in one city versus another.

^{* Per listings for local job openings}

Most expensive recreation: Iqaluit, NU

Recreation can take many different forms, especially considering the population density, weather, and relative remoteness of the various cities on our list. Still, we managed to find a few ways to compare costs in this area, and the numbers are surprising:

FAQ

What is the most unaffordable city in Canada?

Due to its high housing, transportation, and food costs, Iqaluit is the most unaffordable city in Canada. Vancouver is also very expensive. Iqaluit's cost of living is 45% above the national average, while Vancouver's costs are 43% higher than average.

Which city is more expensive, Toronto or Vancouver?

Although both of these popular cities made our list, Vancouver is generally a more expensive place to live than Toronto. It has higher housing, food, and transportation costs in general. However, the average monthly cost to own a home is higher in Toronto. It's $2,108 vs. $1,978 in Vancouver

What city in Canada has the highest cost of living?

Mostly because it's so remote, Iqaluit residents pay significantly more for shelter than other Canadians – the average monthly mortgage cost is $2,820, and rent is $1,550. However, at 34%, residents of Victoria BC spend the highest percentage of their income on shelter than anywhere else in Canada.

Is it cheaper to live in BC or Ontario?

The cost of living is higher in Ontario than in BC, but not by much. Numbers from 2023 show that the average household expenses in BC were $108,172 vs. $117,721 in Ontario. Toronto is the most expensive city in Ontario – the cost of living is 24% above the provincial average, 34% above the national average.