Introduction

When considering relocating to a new city, understanding the cost of living is crucial. This article delves into a detailed comparison of living costs between Calgary vs Toronto, two of Canada’s major urban centers. Both cities offer unique lifestyles and opportunities, but how do their living costs compare in 2023?

Calgary, located in Alberta, is known for its vibrant energy sector and proximity to natural landscapes. In 2023, an individual’s estimated monthly living expenses in Calgary are around C$3,440​​. Meanwhile, Toronto, Ontario’s capital and Canada’s largest city, presents a more expensive living scenario, with estimated monthly costs for a single person at C$4,425​​. This stark contrast in living expenses sets the stage for our in-depth analysis.

Housing Market: Calgary vs Toronto

Understanding the housing market is key to comparing the cost of living between Calgary and Toronto.

Calgary’s Housing Market in 2023

In Calgary, the housing market has shown signs of robustness. A lack of supply has pushed benchmark home prices higher. In November 2023, the average house price in Calgary was reported at $538,755​​. This increase is driven partly by rising demand, with home sales in Calgary experiencing a yearly rise of 8.4%​​. The average price of resale residential homes in July 2023 was around $551,300, representing a slight increase of 5.6% compared to the previous year​​.

In terms of rental housing, a one-bedroom apartment in Calgary’s city center may cost around $1,400 to $1,800 CAD per month. In contrast, the same in suburban areas might average around $1,100 to $1,400 CAD monthly​​​​.

Toronto’s Housing Market in 2023

Toronto’s housing market, in contrast, is quite different. The average home price in the Greater Toronto Area (GTA) was reported at $1,082,179 in November 2023, showing a 4% decrease from the previous month​​. The benchmark home price for October 2023 in the GTA reached $1,103,600, indicating a slight year-over-year increase​​. This trend reflects the challenges in affordability, impacting the dynamics of the housing market in Toronto.

When it comes to rentals, the average cost of a one-bedroom rental unit in Toronto was $2,506/month in March 2023, representing a significant year-over-year increase​​. This rise in rental costs is part of a broader trend in Toronto’s housing market, which has been characterized by high demand and constrained supply.

In summary, while Calgary’s housing market is experiencing growth with rising prices, Toronto’s market is showing some signs of cooling but remains significantly more expensive, both in terms of buying and renting properties.

Living Expenses: Food, Utilities, and Healthcare

Comparing living expenses such as food, utilities, and healthcare between Calgary and Toronto offers further insights into the cost of living differences.

Food Costs

In Calgary, the cost of groceries reflects the city’s affordability compared to Toronto. For instance, a basic lunchtime menu in the business district costs about C$23, and a combo meal at a fast-food restaurant is around C$12. Grocery items like a pound of boneless chicken breast and a liter of whole fat milk are priced at C$8 and C$2.40, respectively​​.

Toronto, known for its higher living costs, shows a noticeable difference in food expenses. A similar lunchtime menu in Toronto’s business district is approximately C$30, and a fast-food meal is about C$13. The cost for a pound of boneless chicken breast is C$9, and a liter of whole fat milk is C$4.08​​. These examples illustrate the higher food costs in Toronto compared to Calgary.

Utilities and Healthcare

While specific data on utilities and healthcare costs in Calgary and Toronto for 2023 isn’t immediately available, general trends indicate that Toronto tends to be more expensive in these aspects as well. Utilities, including electricity, heating, and water, are typically higher in larger cities like Toronto. Additionally, healthcare services, though publicly funded in Canada, can have varying costs for additional services and private healthcare options, with Toronto likely being on the higher end.

In summary, Calgary offers a more affordable living in terms of food costs compared to Toronto. This affordability extends to other living expenses, making Calgary an attractive option for those seeking a lower cost of living. Utilities and healthcare, while not explicitly compared here, follow the general trend of higher costs in larger cities like Toronto.

Lifestyle and Entertainment: Balancing Budgets

When comparing Calgary and Toronto, the cost of entertainment and lifestyle plays a significant role in the overall living expenses.

Entertainment Costs in Calgary

Calgary offers a variety of entertainment options, from parks and museums to dining and nightlife. For example, an inexpensive restaurant meal costs about C$20, and a mid-range meal for two people is around C$80. Other expenses include C$7 for a domestic beer and C$30 for two cinema tickets. Considering a mix of dining, drinks, and other activities, the average monthly entertainment cost in Calgary can be around C$218​​.

Entertainment Costs in Toronto

Toronto, known for its vibrant cultural scene, has slightly higher entertainment costs. An inexpensive meal costs around C$20, similar to Calgary, but a mid-range three-course meal for two is about C$90. A domestic beer is priced at C$7, and a cinema outing for two is C$30. Overall, the average monthly cost for entertainment in Toronto is estimated at C$230​​.

Lifestyle Considerations

Besides entertainment, lifestyle costs encompass various other factors like gym memberships, personal care, and occasional leisure activities. Both cities offer a range of lifestyle choices catering to different budgets. However, Toronto, being a larger and more cosmopolitan city, might offer more diverse options, though potentially at a higher cost.

In conclusion, while the entertainment and lifestyle costs in Calgary and Toronto are comparable, Toronto edges slightly higher in terms of expenses. This difference is reflective of Toronto’s larger size and wider array of cultural and entertainment options.

Employment and Income: How They Affect Living Costs

Employment opportunities and income levels significantly impact the cost of living in Calgary and Toronto. Let’s compare these aspects for 2023.

Employment and Job Market

Toronto, as Canada’s financial hub, offers a wide range of job opportunities but also comes with a high cost of living. Many tech companies are choosing Calgary for their headquarters, suggesting a growing job market in Calgary. Despite having a smaller job market compared to Toronto, Calgary’s affordability, including a lower cost of living, makes it an attractive place for job seekers and businesses​​.

Average Income and Salaries

The average hourly wage in Calgary as of June 2023 ranges between $30/hr-$32/hr, translating to a monthly earning of around $5,120 for a single earner working 40 hours a week. In contrast, the average salary in Calgary is reported to be 114,616 CAD per year, with a significant difference in earnings between men and women​​​​.

In Toronto, the average hourly wage is approximately 65 CAD, indicating higher earning potential. However, the average annual salary in Toronto is around 94,373 CAD, with men earning an average of 103,236 CAD and women 83,937 CAD​​​​.

Cost of Living vs. Income

While the average salary is a bit higher in Toronto/GTA, the cost of living, particularly housing, is significantly higher than in Calgary. Calgary offers a more affordable living environment with its lower cost of housing and other living expenses, even though it has a slightly lower average salary compared to Toronto. This balance between income and living costs is a crucial factor for individuals considering moving to either city.

In summary, both Calgary and Toronto offer distinct advantages in terms of employment and income. Toronto provides higher average salaries but also comes with a higher cost of living. Calgary, while having slightly lower average salaries, offers a more affordable living environment, making it an attractive option for many.

Conclusion: Choosing the Right City for You

When deciding between Calgary and Toronto, several factors come into play, influencing the cost of living and overall quality of life.

• Housing Affordability: Renting in Calgary is notably cheaper than in Toronto, with differences up to 40%​​. This is a significant consideration, especially for those looking to manage their housing costs effectively.
• Cost of Living: Overall, Calgary’s cost of living is lower than Toronto’s, with savings evident in various aspects from housing to transportation​​. Calgary is approximately 24.39% cheaper than Toronto, offering a more affordable lifestyle without compromising on quality​​.
• Transportation Costs: Public transportation in Calgary is more affordable compared to Toronto, with adult monthly passes being 28.2% cheaper​​.
• Restaurant Prices: Dining out is slightly more economical in Calgary than in Toronto, adding to the overall lower cost of living​​.

Both cities offer unique experiences and opportunities. Toronto, as Canada’s financial hub, presents a vibrant, bustling city life with higher living costs. Calgary, while more affordable, offers a calmer atmosphere and proximity to natural landscapes. Your choice will depend on your personal, professional, and financial priorities.

FAQs

Q: What is the cost of living comparison between Toronto and Calgary?

A: The cost of living in Calgary is generally lower than in Toronto. Housing, transportation, and food prices in Calgary are often more affordable compared to those in Toronto.

Q: What are the key factors to consider when deciding to live in Calgary or Toronto?

A: Factors to consider include the cost of living, job opportunities, climate, access to outdoor activities, cultural amenities, and the overall lifestyle that each city offers.

Q: How does the weather in Calgary compare to that of Toronto?

A: Calgary typically experiences milder winters and more sunshine compared to Toronto. However, Calgary also has a higher likelihood of extreme weather events, such as snowstorms, due to its proximity to the Rocky Mountains.

Q: What are the main differences in the cost of living between Calgary and Toronto?

A: The cost of housing, accommodation, and services, such as healthcare and education, tends to be lower in Calgary compared to Toronto. However, Toronto offers a wider range of cultural amenities and entertainment options.

Q: Are there any notable outdoor activities available in and around Calgary?

A: Yes, Calgary is located near the Rocky Mountains, providing easy access to outdoor activities such as hiking, skiing, and mountain biking. The city also has numerous parks and green spaces for outdoor enthusiasts.

Q: What are the differences in provincial taxes between Alberta and Ontario?

A: Alberta generally has lower provincial taxes compared to Ontario. Alberta is known for its flat income tax rate, while Ontario operates on a progressive tax system.

Q: What are the key things to know before moving to Calgary from Toronto?

A: It’s important to understand the differences in the cost of living, climate, job market, and available amenities in both cities. Additionally, familiarizing yourself with the neighborhoods and transportation options in Calgary is advisable.

Q: How do Calgary and Toronto compare in terms of public transit and transportation options?

A: Both cities offer extensive public transit systems, with Toronto having the advantage of a larger transit network due to its population size. Calgary’s public transit system is known for its efficiency and connectivity within the city and surrounding areas.

Q: What are the main cultural and lifestyle differences between Toronto and Calgary?

A: Toronto, as the largest city in Canada, offers a diverse range of cultural amenities, including museums, galleries, and entertainment venues. Calgary, while smaller, boasts a strong outdoor and sports culture, with easy access to the Rocky Mountains and a thriving arts scene.

Q: What are some of the major factors to consider when deciding between living in Calgary or Toronto?

A: Major factors include the cost of living, job opportunities, climate preferences, access to outdoor activities, and the overall lifestyle and cultural amenities each city offers. It’s essential to weigh these factors based on personal preferences and priorities.