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Canada's Most (and Least) Affordable Cities
Curious about the most expensive and least expensive places to live in Canada? Here, we provide a short list of cities in Canada, cost of living, and why it is the way it is.
Niamh GyulayContent Marketing Specialist @ Pine
4 min read
While Canada does not really have the same culture of transplants to new provinces and cities at random like the US does, the question of “where should I live?” comes up often for families coming to Canada, and homebuyers that are looking for a lifestyle change. As 2026 progresses, the divide between Canada’s urban hotspots and affordability oases continues to grow. Whatever you’re looking for, you’re sure to find somewhere on this list that meets your needs, and budget.
We will be referencing the price-to-income ratio, a concept that is used to determine affordability. It is calculated by dividing the median home price by the median annual household income. Historically, the benchmark of a “healthy” ratio is 3.0-4.0.
Canada’s Least Affordable Cities
1. Vancouver, British Columbia
Vancouver has been the most expensive city in Canada for nearly 30 years, and in 2026, it’s no different. The monthly cost of living for the average Vancouverite, as of 2025, is 45% above the national average, and 36% above the average elsewhere in BC. The average house price hovers around just under $1.2M. This is largely due to the fact that because Vancouver is hemmed in by mountains and the ocean, the opportunity for physical expansion is non-existent, so the existing housing market is really all the selection new homebuyers have access to. On top of that, even if they are able to build, Vancouver also has some of the longest building turnaround times in the country. These factors contribute to a price-to-income ratio of a shocking 11.4.
2. Toronto, Ontario
Obviously, Toronto is one of Canada’s most expensive cities, being the cultural, financial, and commercial hub of the country. Demand stays high, and thus, cost of living stays high. Toronto’s cost of living is about 30% above the national average, and 24% above the provincial average. The average home price is about $1.07M. Toronto, being a huge hub of business, attracts a huge pool of professional talent. The high “price-to-income” ratio makes it difficult for average earners to enter the market. Toronto has a score of 10.2.
3. Victoria, British Columbia
Victoria might seem like a surprise on this list, but when you remember that people value beautiful cities and temperate weather very highly in Canada, the reason why becomes clear. Victoria has a unique climate due to its situation on Vancouver Island, but the high demand coupled with the confined area and extra effort to transport goods makes access to that climate pricey. Victoria’s cost of living is 21% above the national average, and 14% above the rest of BC, and the average house price is $870K. Victoria’s price-to-income ratio is 9.1.
Canada’s Most Affordable Cities
1. Saint John, New Brunswick
The same Canadians that are looking to seek solace in Victoria, BC might find a better, more affordable option in Saint John. There, people can enjoy easy day-to-day lifestyles – think short commutes, close services – without sacrificing the coastal lifestyle. And the cost doesn’t hurt either, with a price-to-income ratio of 5.31, and the average home price resting comfortably around $340K. Both retirees and young families can enjoy, and the port economy makes this city welcoming to newcomers in both personality and cost of living.
2. Thunder Bay, Ontario
Thunder Bay, while isolated geographically, has many city amenities that are desirable amongst not only Canadians, but specifically Ontarians. Great hospitals, an accessible waterfront, nearby natural wonders, and university culture, are just some of the aspects of Thunder Bay that attract newcomers. That, and the affordable cost of living. Thunder Bay lies at roughly 4.9 price-to-income ratio, a fairly healthy score, especially for Ontario. Not to mention, the average home price is a surprising $344,950, some of the lowest in Ontario cities.
3. Regina, Saskatchewan
One of the most overlooked metros in Canada, Regina’s economy is built on agriculture and public service. Home prices average out around $329K, and when considering Saskatchewan’s base income and price-to-income ratio of 4.91, new homebuyers are able to seriously consider entering the market, especially dual income households.
Wherever you choose to plant roots, checking what the city’s price-to-income ratio is always a good idea, and consider other cost of living expenses, like transportation (does the city have a transit system or is driving the main mode of transport?) groceries (are groceries more expensive in this city?) and schools.
Regardless of city, or province, Pine will always give you the best rates on your mortgage, making every home purchase more affordable for everyone. Get pre-approved for your mortgage at pine.ca/apply today.
*Stats from moneyGenius and Taxes for Expats.