5 Most Affordable Cities in Canada to Live: Costs Breakdown in 2023

Disclaimer: This article is sponsored by Ecoline Windows.

Canada has some of the most beautiful cities in the world, but it is also one of the most expensive countries to live in. If you’re looking to immigrate soon or just want to change location within Canada, then you’re probably wondering what cities make your money go further.

While there are so many factors at play when it comes to affordability, such as taxes, the job market, and real estate, we decided to focus on the cost of shelter, reaching out to many real estate agents, home renovation experts like Ecoline Windows, immigration officers, and other professionals to create this list of the top five most affordable cities in Canada to live in 2023. Interested? Keep reading to learn more…

Breaking Down The Average National Prices in Canada

First things first – housing. This is the most significant expenditure you will face when moving to Canada, so knowing what is actually “affordable” will definitely come in handy. According to statistics, 38% of those surveyed defined it as a house that you could pay for and that had all of your basic needs. 18% said affordable housing meant spending only 30 to 40% of their income on housing.

Here are some important numbers to keep in mind about Canada’s costs in general.

Monthly National Average Costs

• Average Salary in Canada (After taxes): CAD $4,130,59.
• Rent (in city centres) 
  • 1 Bedroom apartment: CAD $1,618.25 (39.17% of income)
  • 3 Bedroom apartment: CAD $2,598.55 (62.9% of income)

• Grocery Bill
  • Women 19-30 years old: CAD $297
  • Men 19-30 years old: CAD $341

• Communication services: CAD $176 
• Electricity bills: CAD $173.60

The average property price is CAD $626,000, and in 2022 it experienced a rough fall of 12% in the average Canadian market. Throw in an average 5% unemployment rate and 10.2% provincial taxes, and Canada is definitely an expensive country to live in.

“In 2022, we saw one of the biggest single-year shifts on record in Canadian housing activity, from record highs last year to just below the 10-year average to end the year,” said Jill Oudil, chair of CREA. The national average price for a home property was CAD $626,318 by the end of 2022, 12% less than last year. 

The Canadian Real Estate Association established its near future forecast. The average price of homes sold in Canada will fall 5.9% annually to $662,103 in 2023 but will bounce back by 3.5% to $685,056 in 2024. This is the price for a decent basic house in a good neighbourhood. Still, you should also consider the renovation costs like new Canada-made windows, front doors, attic reno, and all other energy efficiency home improvements to comply with the local policy of “going green.” So, calculate everything thoroughly before opting for a new house in a particular province.

The Most Affordable Provinces to Consider

With so many cities in Canada, it helps to break the cost down by province when figuring out the most affordable cities in Canada to live in.

Quebec

Quebec is on every ranking list when it comes to affordability, even with its big cities. In fact, most of the top 10 most affordable cities in Canada are in Quebec. It’s an ideal province to live on a budget thanks to its subsidized childcare system, lowest electrical costs in the country (at 7.3 cents per kilowatt hour), and low housing demand. However, as the only province with French as its official language, that could be an unwanted barrier if you don’t already speak the language or do not wish to learn. The average 1-bedroom apartment rent is CAD 1,099, and the average price for a single-family property is CAD $440,000. Another important thing to consider is their high tax rate of 14.97%.

Alberta

Another one of the most affordable provinces in Alberta, mostly due to the lack of provincial sales taxes and provincial health premiums. The two biggest cities, Edmonton and Calgary, are also relatively affordable compared to other major cities in Canada, and the job market tends to be quite good. Rent in those cities can be around CAD $1,300 while a single detached home is around CAD $500,000. If you opt for smaller towns such as Lloydminster, the prices drop even further to approximately CAD $300,000. According to CREA, Alberta had the most stable prices in 2022, falling only 1.8% during the market correction.

Saskatchewan

This province is twice the size of England and has a population of roughly one million people, making it a great place for people who want more space. It does carry a provincial sales tax but is still cheaper than most provinces as it comes to a total of 11%. Residents in this area have free access to quality healthcare and the average home property price is only CAD $284,334.

Manitoba

With their strong and diverse economy, they have a competitive housing market average price of only CAD $336,485 and a provincial tax rate of 12%. There are more construction starts in this province than in the rest of the country, so the market is promising, and there continues to be housing demand. Plus, the government gives out regular aid such as the Family Affordability Package to families in the province (which is why taxes here may be a tad higher than in the previously mentioned areas).

Top 5 Most Affordable Cities in Canada to Live in 2023

In no particular order, here are the most popular cities for their affordability.

Edmonton, Alberta

The capital of Alberta, which is also known as the “City of Festivals,” is a popular city choice due to the cost/experience balance it provides for its million+ citizens. Known for its city-sanctioned events and downtown entertainment, Edmonton is an exciting place to live in, with vibrant nightlife and rich culture for students and families.  

Being the centre of Alberta’s oil and gas industry, along with large corporations and blooming retail and tech industries, there are job opportunities for everyone, not to mention a low 5.1% unemployment rate. The average property price for a 3-bedroom house is CAD $408,961.

Monthly Averages:

• Average Salary (After taxes): CAD $4,168,30.
• Rent (in the city centre)
  • 1 Bedroom apartment: CAD $1,234,83.
  • 3 Bedroom apartment: CAD $2,041,14.

• Grocery bill: CAD $280 (per person)
• Communication services: CAD $175
• Electricity bills: CAD $167
• Public Transportation: CAD $100

Regina, Saskatchewan

Regina, which is also known as the “Queen’s City”, is Saskatchewan’s capital city, it’s 2nd largest, and one of the fastest-growing cities in the country. It has a population of approximately 250,000 people, with more coming each day. Due to its small size, it won’t have the same nightlife and entertainment as the bigger cities, but there are more than enough restaurants, bars, and attractions for most people.

You are likely to find a job that pays well in the industrialized sector and the average unemployment rate is only 4.7%. 

2022 was rough on the overall Canadian market. Regina experienced a 19.8% price drop with an average property price of only CAD $284,062. 

Monthly averages:

• Average Salary (After taxes): CAD $5,022,36
• Rent (in the city centre)
  • 1 Bedroom apartment: CAD $1,017,71
  • 3 Bedroom apartment: CAD $1,716,67

• Grocery bill: CAD $346 (per person)
• Communication services: CAD $175
• Electricity bills: CAD $96
• Public Transportation: CAD $88

Winnipeg, Manitoba 

Winnipeg is the largest city in Manitoba, with a population of approximately 700,000. It has a fairly long cold season (often called “Winterpeg” by locals) but also hot and humid summers. Many Canadians consider Winnipeg as one of Canada’s most important industrial centers with its primary industries including manufacturing, transportation, and storage tanks for agriculture and oil and gas.

This city has relatively low living costs and property prices. The average house price in Winnipeg closed in at CAD $351,866 in December 2022, 16% less than in May. The province of Manitoba has an average rent of CAD $1,373, which is roughly CAD $300 below the national average.

Monthly Averages:

• Average Salary (after taxes): CAD $3,232,68
• Rent (in the city centre)
  • 1 Bedroom apartment: CAD 1.020,36
  • 3 Bedroom apartment: CAD 1.609,34

• Grocery bill: CAD $346 (per person)
• Communication services: CAD $175
• Electricity bills: CAD $96
• Public Transportation: CAD $104

Halifax, Nova Scotia 

Halifax is one of the most affordable cities in Canada as well, ranking at number 7. This is according to Numbeo’s Cost of living index, which considers expenses such as food, clothing, and other goods. 

Halifax is home to the largest natural harbour in the world and is one of Canada’s oldest cities. It has a rich history, great restaurants, fresh seafood, and is known for its beautiful landscapes. Surfing and music events are among the many things that make Halifax a unique coastal city.

According to statistics, rural areas are much cheaper than Halifax when it comes to rent and property costs, so if you’re able to live outside the city, you’ll find even better deals. However, the median house price in Halifax clocks in at CAD $480,600.

Monthly Averages:

• Average Salary (After taxes): CAD $4,041,39
• Rent (in the city centre)
  • 1 Bedroom apartment: CAD $1,659
  • 3 Bedroom apartment: CAD $2,609

• Grocery bill: CAD $315 (per person)
• Communication services: CAD $180
• Electricity bills: CAD $150 
• Public Transportation: CAD $82.50
• Unemployment rate: 5.4%

Sherbrooke, Quebec

This French-speaking city has many summer festivals and some cool camping spots. The city’s universities and startups provide many opportunities for young adults, especially since demands are low. 

In the ranking published in Slice Magazine in 2021, Sherbrooke ranked as the second most affordable city in Canada. By comparing the costs of living between Sherbrooke and Montreal, you can see that costs are 30% less in the Eastern Townships, with an average home price of CAD $412,777. 

Monthly Average:

• Average Salary (After taxes): CAD $3,633.33
• Rent (in the city centre)

• 1 Bedroom apartment: CAD $773
• 3 Bedroom apartment: CAD $1.416.67

• Grocery bill: CAD $254 (per person)
• Communication services: CAD $175
• Electricity bills: CAD $73
• Public Transportation: CAD $83.75

Wrapping Up

2022 was a shaky year for the market, but it still remains one of the top countries in the world when it comes to quality of life. Like most countries, the bigger the city, the higher the price. The cities we listed are somewhere in the middle, offering the average costs in terms of rent, utility bills, grocery and transportation.

All in all, Edmonton stands out the most, thanks to its high average salary and relatively low property living costs. Many people can have a better chance in Edmonton at saving up for a place to buy or simply affording rent and still have money to enjoy life. Whatever suits you most will be based on your particular lifestyle, but we hope this article can be a guide to help you decide what city is right for you.

If you live in Canada, let us know in the comments what the cost of living is and where you’d recommend people go to get the most bang for their buck.