Most Expensive Cities In Canada In 2025

While the Canadian housing crisis has dominated recent headlines, housing isn’t the only factor in determining the most expensive city. Food, transportation, household operations, and recreation are all important parts of life – and your budget.

In the interest of saving you money, we’ve compared them all and compiled a list of the most expensive cities in Canada. The #1 most expensive city in Canada probably isn’t a surprise: it’s Vancouver.

Key Takeaways

• The most expensive place to live in Canada is Vancouver, where the cost of living is about 45% higher than the national average.
• The most expensive province in Canada is British Columbia, where the average detached home costs 42% higher than the rest of the nation.
• Toronto has the most expensive housing, Iqaluit the most expensive food, and Vancouver has the most expensive transportation.

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Why are some cities so expensive?

According to Statistics Canada, the 5 biggest contributing factors to cost of living are housing, food, transportation, household operations, and recreation. In 2021, the average Canadian spent:

• 31.4% of their budget on housing, including rent and mortgage payments
• 15.4% of their budget on food, including food purchased from stores and restaurants
• 15% of their budget on transportation, including leasing and purchasing vehicles; insurance premiums, gasoline, and repairs and maintenance
• 8.3% of their budget on household operations, including communications, childcare, and home services
• 6.3% of their budget on recreation, including most non-essential consumer goods, recreational vehicles, and travel

The same year, each Canadian spent about $21,106 on housing, $10,305 on food, and $10,099 on transportation. Together, these 5 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 1.9% in 2024, with housing costs rising by 4.5%, and transportation by 3.4%. Gasoline alone cost 8.6% more in January 2025 than it did the year prior.

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 6 regions, we discovered the 10 most expensive places to live in Canada:

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. An "✖️" marks a cost above the national average; a “✔️” marks one below.

Most expensive cities in the Northern Territories

Photo by Rigo Olvera

Iqaluit, NU

• Population (2021): 7,429

• Cost of living (2025): 43% above national average, 2% above territorial average
• Average cost to own (2021): $2,820 per month
• Average rent (2021): $1,550 per month
• Average pay for childcare workers (2025): $32.59 per hour

One of the most expensive places to live in Canada is also the smallest: Iqaluit. Between Nunavut, the Northwest Territories, and the Yukon, the cost of living is over 30% higher than the national average.

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 68% higher than the intercity average.

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

Yellowknife, NT

• Population (2021): 16,220

• Cost of living (2025): 35% above national average, -1% below territorial average
• Average house price (2025): $780,650
• 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, it takes a family in Yellowknife over 20% more income to meet their basic needs than if they lived in Vancouver.

Whitehorse, YT

• Population (2021): 26,405

• Cost of living (2025): 20% above national average, 2% above territorial average
• Average house price (2025): $780,650
• Average rent (2021): $1,428 per month

Whitehorse is perhaps the most affordable city in Canada’s northern territories, with yearly car insurance premiums averaging just $889, according to one source. 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 towns.

Most expensive cities in B.C.

Photo by James Wheeler

Vancouver, BC

• Population (2021): 2,270,780

• Cost of living (2025): 45% above national average, 36% above provincial average
• Average house price (2025): $1,173,000
• Average rent (2021): $1,624 per month
• Average price of gasoline (January 2025): 193.7 cents per litre

Nobody will be surprised to learn the most expensive place to live in Canada 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 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 – just expect to pay a lot for the convenience.

Victoria, BC

• Population (2021): 346,740

• Cost of living (2025): 21% above national average, 14% above national average
• Average house price (2025): $870,100
• Average rent (2021): $1,452 per month

It may not be cheap, but living in Victoria is certainly pretty – residents grew and registered over 38 billion flowers in the 2024 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 2022 was $1,669 per month.

Kelowna, BC

• Population (2021): 191,500

• Cost of living (2025): 14% above national average, 8% 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 suffered 494.3 break-ins per 100,000 residents in 2023, which can drive up the cost of car and home insurance.

Most expensive cities in Ontario

Photo by Roberto Nickson

Toronto, ON

• Population (2021): 5,237,170

• Cost of living (2025): 30% above national average, 24% above provincial average
• Average house price (2025): $1,070,100
• Average rent (2021): $1,618 per month
• Average car insurance premiums (2024): $2,295 per year

A 6-figure salary is nearly a must-have to live in the Big 6ix – a whopping 30.5% of Toronto residents spend 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): 1,236,965

• Cost of living (2025): 22% above national average, 16% above provincial average
• Average house price (2025): $649,900
• 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, affordable transit, and liveable wages, the result is a high cost of living.

Kitchener-Cambridge-Waterloo, ON

• Population (2021): 477,255

• Cost of living (2025): 15% above national average, 9% above provincial average
• Average house price (2025): $730,000
• Average rent (2021): $1,352 per month

From 2013 to 2023, the price of a single-family home in Kitchener-Waterloo grew by 159%. Demand surged during the pandemic as remote workers fled Toronto – but now that workers are returning to the office, housing costs may soon return to normal.

Most expensive cities in the Prairies

Photo by Lisa Simpson

Calgary, AB

• Population (2021): 1,207,615

• Cost of living (2025): 16% above national average, 13% above provincial average
• Average house price (2025): $573,100
• Average rent (2021): $1,416 per month
• Average car insurance premiums (2024): $3,182 per year

Although gas is cheap in Calgary, car insurance sure isn’t. The Insurance Bureau of Canada reports Alberta’s legal costs are the highest in the country, while the cost of repairing vehicles and the rate of vehicles stolen stand at second place.

In every other category on this list (except housing), Calgary doesn’t even rank among the top 10. You may just want to trade your car for a bike when you move to the jewel of the prairies.

Edmonton, AB

• Population (2021): 1,154,295

• Cost of living (2025): 7% above national average, 3% above provincial average

• Average house price (2025): $412,200

• Average rent (2021): $1,328 per month

At the risk of sounding repetitive, Edmonton’s two biggest expenses are housing and transportation. What’s surprising is the cost of communicating across the Prairies – the average monthly price for cable, mobile, internet, and landline services combined in Alberta is 60% higher than in the Yukon.

Winnipeg, MB

• Population (2021): 693,555

• Cost of living (2025): 5% above national average, 10% above provincial average

• Average house price (2025): $363,200
• 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 the benefits of cheap gas and car insurance, with yearly premiums averaging just $1,381 in 2024.

Most expensive cities in the Atlantic

Halifax, NS

• Population (2021): 396,355

• Cost of living (2025): 6% above national average, 12% above provincial average

• Average house price (2025): $550,500

• Average rent (2021): $1,246 per month
• Average car insurance premiums (2024): $2,490 per year

The Canadian Consumer Price Index (CPI) measures inflation by comparing the present-day prices of various items to what they were in 2002. In 2002, the CPI for food in the Atlantic provinces was 100; in 2024 it averaged 196.58. In other words, food prices nearly doubled in the last 22 years.

In Halifax, food isn’t the only thing Canadians are struggling to afford. Although the Atlantic provinces have fewer people, they have the highest rate of car accident-related fatalities per 100,000 residents in Canada, which raises car insurance premiums.

Fredericton, NB

• Population (2021): 91,585

• Cost of living (2025): 2% above national average, 12% above provincial average

• Average house price (2025): $338,800
• Average rent (2021): $1,057 per month

Like the northern territories, the Atlantic provinces struggle to import food and gas at affordable prices. In January 2025, the average price of gas was 180.7 cents per litre in Fredericton – 17.3 cents higher than in Calgary!

Saint John, NB

• Population (2021): 110,405

• Cost of living (2025): 3% below national average, 7% above provincial average
• Average house price (2025): $338,600
• Average rent (2021): $862 per month

The price of gas in the Atlantic drives up shipping costs for food as well as fun. To help gauge the cost of recreation – which includes most non-essential consumer goods, like toys and electronics – we compared shipping costs for every city on this list.

The cost to ship a 1kg shoebox from the nearest Amazon warehouse in Montreal to Fredericton via Canada Post is $24.39. For comparison, it takes just $17.72 to ship a package to Vancouver from the warehouse on the city outskirts.

Most expensive cities in Québec

Photo by Céline Chamiot-Poncet

Montreal, QC

• Population (2021): 3,570,000

• Cost of living (2025): 15% above national average, 23% above provincial average

• Average house price (2025): $549,900
• Average rent (2021): $981 per month

• Average pay for childcare workers (2025): $30.02

Québec has one of the lowest costs of living, making Montreal the cheapest city with a population over 1 million in Canada. Although the food CPI in Montreal reached 189.5 in 2024, the large number and diversity of grocery stores helps keep costs low.

For example, in January 2025, a kilogram of ground beef would set you back by $14.03 in Vancouver and $12.51 in Montreal. A pound of potatoes cost $4.71; in Halifax, the same spuds cost $5.64.

Québec, QC

• Population (2021): 346,740

• Cost of living (2025): 2% above national average, 9% above provincial average

• Average house price (2025): $384,100
• 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 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): 346,740

• Cost of living (2025): 5% below national average, 2% above provincial average
• Average house price (2025): $387,546
• Average rent (2021): $672 per month

Although it’s not as big as housing, recreation still plays a large role in the Canadian budget, as well as quality of life. In 2023, more Canadians used SkyScanner to search for flights to the Turks and Caicos Islands than any other vacation destination.

A round-trip for one starts at a mere $464 for folks in Trois-Rivières – an absolute steal compared to the fare from Iqaluit, which starts at $2,104!

Methodology

To measure affordability, we compared 3 – 7 indicators for housing, food, transportation, household operations, and recreation in the 3 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 how highly it ranked against 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 general cost of living (as calculated by the ERI) making up the remaining 23.6%.

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: Toronto, ON

The rising cost of housing in Toronto is a windfall for some and a major source of stress for most. Homeowners around Canada now value their homes at much higher prices than they did almost a decade ago.

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Most expensive food: Iqaluit, NU

Although Iqaluit has the most expensive food of any city on this list, its average food CPI (which measures the inflation of prices since 2002) is lower than most. In other words, high food prices have been a problem in the north for quite some time.

Most expensive transportation: Vancouver, BC

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 because of a robust union or 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 gives us an idea of how expensive it is to run a household in one city versus another.

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Most expensive recreation: Iqaluit, NU

On one hand, you’ll probably always enjoy a white Christmas if you live in Iqaluit. On the other, you’re likely to spend far more on gifts for the holidays.

FAQ

Where is housing most expensive in Canada?

Although Vancouver and Toronto’s housing markets are infamously expensive, according to Statistics Canada, the highest monthly average shelter cost belonged to Yellowknife, NT, in 2021.

Which Canadian city has the highest rent?

Data collected by the Canada Mortgage and Housing Corporation (CMHC) in 2022 shows Vancouver has the highest rents in Canada – but if you factor in the northern territories, it’s probably Yellowknife.

Which city in Canada has a high cost of living?

According to the Economic Research Institute (ERI), the cities with the highest cost of living compared to the national average are Vancouver, Iqaluit, Yellowknife, Toronto, and Ottawa-Gatineau.

Where is the most liveable city in Canada?

Thanks to its beauty, safety, and affordability, Québec City might well be the best place to live in Canada. If you don’t speak French, Ottawa and Guelph, ON, are strong contenders.

What is the cheapest province in Canada?

A recent study by Westland Insurance found Newfoundland & Labrador to be the cheapest province in Canada, but the Economic Research Institute gives the title to New Brunswick.