Inflation-induced prices: Surviving the rising cost of living in Canada
By: Callum Denault
Published on: March 22nd, 2024
While Canada offers many opportunities to newcomers, living here has its hardships, just like any other part of the world. Real estate, food, and transportation have all risen in price while the average salary of Canadians has struggled to keep up.
While the value of the Canadian dollar is relatively high compared to many countries, basic necessities are generally more expensive than other regions with less booming economies.
Here are some tips on how to live in Canada and survive inflation-induced price rises.
Real estate: Affording a place to live in Canada
For those looking for a place to settle in Canada, comparing the real estate prices of its many different cities can be helpful. While real estate is generally expensive across the country, some parts are much more affordable than others.
Here is a list of the average rent prices in some of Canada’s biggest cities, organized by how much residents should expect to pay monthly depending on their home size. In Ontario, Ottawa is generally a cheaper place to live than Toronto or Mississauga. A studio apartment in Ottawa costs around $1,418 a month compared to other cities, where rents can range from $1,849 to $2,289.
Montreal, Edmonton, Hamilton, and Ottawa are among the cheapest places to rent across Canada, charging around $1,200 to $1,400 for a studio apartment. Vancouver is the most expensive city to rent in Canada, with prices skyrocketing to $2,896 for a studio apartment.
A high income is typically necessary for those wishing to purchase a home in Canada. In this list of average Canadian home prices, the costs can range from as low as $300,000 to over $1 million. The list also estimates how much income is needed to own a home. For example, someone wanting to own a home worth $621,000 in Ottawa would need to make around $128,000 a year to pay for it.
Similar to rent prices, the average cost of a home greatly depends on what city it is located in. Vancouver, followed by Toronto, is the most expensive place in Canada for home ownership. On the other hand, cities like Montreal and Calgary go for around $500,000 a home, while smaller cities like Regina and Fredericton offer the cheapest prices for homes.
Transportation
The average cost of driving a car is arguably the biggest drawback to owning a vehicle. In 2023, a new car in Canada typically would have sold for around $67,000. On top of this, insurance, fuel costs, and maintenance all add to monthly fees.
However, there are ways to save on driving outside of relying on public transportation. For starters, it is suggested that anyone who spends over $1,000 a year on maintaining their car consider buying a new one.
Canada is planning to mostly have all-electric cars in the country by 2035, meaning charging stations will become increasingly common. Not only can electric cars save hundreds to thousands of dollars a year on fuel, but the Canadian government offers cash incentives to anyone driving zero-emission vehicles.
Public transportation is another way Canadians move around. The cost of monthly transportation passes varies between cities. Toronto’s transportation passes are the most expensive at $156 a month, with other major cities roughly charging around $100 for monthly passes.
It is worth keeping track of how much you spend every month on individual trips and if it would be cheaper to buy a monthly pass instead. Passes could help with saving money, especially for those who use public transit on a daily basis.
Food and prescription drugs
Finally, there are ways to save on consumable goods. Different pharmacies charge diverse dispensing fees for prescription drugs, with the average cost being $9. The cheapest pharmacy chain is Costco, which does not require a membership (unlike their grocery store) and only charges $4.50 dispensing fees. A full list of other pharmacy brands and their prices can be found here.
There are also ways to save on groceries, typically by buying cheap yet nutritionally rich foods such as eggs, ground meat, frozen veggies, dried lentils, and milk. Rice and pasta can also be great options to add bulk to meals. Additionally, cooking meals at home is generally cheaper than ordering in. Learning to cook popular takeout meals such as pizza may be a rewarding experience with cost-effective benefits. There are many tutorials available on YouTube that provide step-by-step instructions on preparing various meals.
If you find yourself really struggling to make ends meet, you can visit your local food bank. There are many food banks available across Canada that offer visitors access to free, nutritious, and culturally appropriate foods. Each food bank has different processes, policies, and eligibility criteria, with some requiring appointments and client ID registrations. It’s best to visit your local food bank or contact them beforehand to ask about their unique program requirements.
While inflation and the rising prices of necessities have caused hardship for many Canadians, these tips can help relieve some of the financial burdens. Even with the increasing costs, Canada is still a great place to call home for newcomers.