Canadians face a struggle today trying to keep up with costs. Inflation and interest rates continue to be on top of mind, with many looking for ways to cut expenses. In fact, some Canadians have made the drastic choice to move all together!
That’s why today, we’re going to look at the cheapest places to live in Canada. Using data from the Cost of Living Index (COLI), we’ll look at the three cities with the lowest COLI. As well, we’ll add on another option, if you’re not willing to move.
3. Brampton
If you’re looking to live near Toronto, but not wanting to pay the high prices, then perhaps consider Brampton, Ontario. The COLI of Brampton, Ontario is currently at 61, making it 39 points cheaper than living in New York City, which is what data collector Numbeo uses as the average.
According to Numbeo, there is a bit of back and forth if you’re looking to live in Brampton. First off, purchasing power is far better than it would be compared to the rest of Canada. So if you’re looking to keep costs down from buying items, this is certainly helpful.
However, real estate and rent are quite expensive. The median home price in Brampton is currently at $1.05 million, according to Redfin. So if you’re moving simply to buy a bigger and better home, Brampton likely isn’t the choice for you. Especially as the average salary is currently at $52,035, according to ZipRecruiter.
2. Windsor
Windsor, Ontario is another strong option, with a COLI currently at 60.6, making it 39.4 points cheaper than living in New York City, according to Numbeo. The costs overall are far less than the rest of the country, with more purchasing power and even rent coming in lower than most of Canada.
The thing here is that you’re likely to make a bit less than if you were living in a place like Brampton. The average salary in Windsor is currently at $50,774, at the time of writing. And the problem is that you’re still going to be paying high prices if looking to purchase a home.
The median sale price, according to Redfin, came in at $825,000 for a home in Windsor. So while the cost of living overall may be down, the cost of actually having a place to live can still be quite high.
1. Regina
The numbers jump to a far more suitable choice when looking at the last two options. In Regina, Saskatchewan, Canadians have a COLI at 60.4, making it 39.6 points cheaper than living in New York City, according to Numbeo.
It really adds up living in Regina, as your purchasing power is much stronger than the rest of Canada. Furthermore, if you’re looking to up and move to the city, there is also a lot of homes for sale at a far more reasonable price than Brampton.
The median home price for July 2023 came in at about $290,129, far cheaper than most large Canadian cities. Plus, you’ll be making about as much as you would living in Brampton, with the average salary at $52,126, according to ZipRecruiter! So if you’re willing to pack up and move, Regina could be the right place!
Another option
Here’s the thing. Unless you’ve also saved up money for moving expenses, packing up and heading out West isn’t exactly the best move. Especially if you’re going to take a pay cut. What might be better is investing to create more passive income.
In fact, you can still invest in real estate for strong passive income. Take a stock such as SmartCentres REIT (TSX:SRU.UN). Because of the recent downturn, shares are trading at a valuable price. You can pick it up trading at 12.8 times earnings, with a 7.68% dividend yield at the time of writing.
Shares are down 17% in the last year as consumers tighten their purse strings. So there could also be a huge return in the near future once the economy recovers. Together, you can create passive income from returns coupled with dividend income. And that could be more lucrative than moving ever is!
