Is Vancouver More Expensive Than Toronto?

When considering residing in two of Canada’s most prominent urban centers, Vancouver and Toronto, an examination of living expenses is necessary. Both cities consistently rank among the most expensive in the country, attracting residents with diverse economies and cultural offerings. This article highlights variations in housing, daily expenditures, income, and taxation. Understanding these distinctions is important for individuals or families evaluating their potential financial commitments.

Housing Expenses

Housing represents the most substantial component of living costs in both Vancouver and Toronto, often serving as the primary differentiator in overall affordability. Rental prices exhibit considerable variation based on location and unit size. In Vancouver, a one-bedroom apartment in the city center averages $2,000 to $2,817 per month, while units outside the core range from $1,700 to $2,359. Two-bedroom apartments typically cost $3,500 to $3,900 monthly.

Toronto’s city center one-bedroom apartments average $2,100 to $2,145 per month, with the overall average rent for the city recorded at $2,593 in July 2025. Toronto’s rental market tends to be slightly less expensive than Vancouver’s for similar unit types. Vancouver’s higher density within a smaller land area contributes to its elevated rental costs.

For homeownership, purchase prices in both cities reflect significant investment. As of late 2024 and early 2025, the average home price in Greater Vancouver ranged from $1.17 million to $1.25 million. Detached homes averaged $1.78 million to $2.09 million, while townhouses averaged $1.07 million to $1.12 million. These figures highlight the capital required for property acquisition in Vancouver, influenced by geographical constraints and limited land supply.

In Toronto, the average home price during a similar period fluctuated between $981,000 and $1.15 million. Detached homes averaged $1.36 million to $1.42 million, and townhouses ranged from $722,100 to $983,000. While both markets are competitive, Toronto’s property values are generally lower than Vancouver’s across most housing types, a distinction that significantly impacts overall affordability for buyers. Supply, demand, and population growth exert upward pressure on prices in both areas.

Everyday Living Costs

Beyond housing, daily living expenses also differ. Grocery costs for a single adult in Vancouver range from $200 to $500 per month, with some estimates suggesting a monthly average around $900 for a typical household. For a single person, monthly grocery expenses in Toronto are generally lower, ranging from $297 to $400, reflecting a consistent trend of Toronto being slightly more economical for food purchases.

Transportation costs also vary. A monthly adult transit pass for TransLink in Vancouver costs $107.30 for one zone, $143.50 for two zones, and $193.80 for three zones (as of July 2024). A monthly pass for the Toronto Transit Commission (TTC) is approximately $156. Car insurance premiums are also an expense; the average annual cost in British Columbia is around $1,775, while in Ontario, it is approximately $1,927 provincially, and in Toronto, it can reach about $2,044 to $2,400 annually.

Utility expenses, encompassing electricity, heating, water, and garbage, show divergence. Average monthly utility costs in Vancouver range from $100-$250 for a basic apartment, with estimates up to $448.18 per month. Toronto’s utility costs are comparable, averaging approximately $150.84 per month for a 915 sq ft apartment. Internet services add around $80 per month in Vancouver, and mobile phone plans average about $60 monthly.

Dining out and entertainment costs also contribute to the daily budget. A meal at a mid-range restaurant in Vancouver costs around $25 per person, or $60 for two. In Toronto, a mid-range restaurant meal typically costs $30 to $60 per person, or about $70 to $71 for two. Both cities offer various free or low-cost recreational activities, particularly outdoor options in Vancouver due to its natural surroundings.

Income and Taxation

Average income levels provide context for cost of living comparisons. While average salaries can be similar, some analyses suggest a slight edge in earning potential for Toronto. Toronto generally exhibits higher local purchasing power, which can mean more disposable income despite comparable overall living costs. A livable wage, which accounts for necessities, leisure, and savings, is estimated at $25.68 per hour in Vancouver and $25.05 per hour in Toronto.

Provincial income tax rates also influence net disposable income. In British Columbia, provincial income tax ranges from 5.06% on income up to $47,937 to 20.5% on income exceeding $252,752. Ontario’s provincial income tax begins at 5.05% for income up to $51,446 and increases to 13.16% for income above $220,000. These progressive tax systems mean higher earners face higher marginal tax rates in both provinces.

Sales tax also impacts the cost of goods and services. British Columbia applies a 7% Provincial Sales Tax (PST) in addition to the 5% Goods and Services Tax (GST), resulting in a combined 12% sales tax on most eligible items. Ontario utilizes a Harmonized Sales Tax (HST) of 13%, which combines provincial and federal sales taxes into a single levy. These tax differences affect the cost of consumer goods and daily expenditures.