Thinking of moving to a more 'affordable' part of the country? Consider this

From affordable housing in Alberta to high taxes in Quebec, there are many widely accepted claims about the cost of living in different parts of the country. But are these preconceptions accurate?

"I lost a lot of money while I was in Alberta. I had quite a lot of debt," said Sarah Lopes Rodrigues. 

In July 2022, the mother of two moved from Vancouver to Calgary to take advantage of the province's supposed affordability. But she found the lower home prices, and the fact that Alberta has no sales tax, weren’t enough.

"Sure, you might save $4 or $5 on your bills, but ultimately, that's not what saved me money at all," she said. Moving to Montreal in the summer of 2024 helped replenish the family's budget, even though la belle province is notorious for its higher taxes.

Benoît Bornais, on the other hand, says his finances actually improved after he relocated from Quebec to Alberta in the summer of 2023.

One way to compare affordability across the country is by using the "market basket measure," which calculates the cost of a specific basket of food, clothing, shelter, transportation and other necessities.

The cost of that basket of goods — deemed essential for a "modest, basic standard of living" — is highest in British Columbia, with Alberta ranking second.

That cost of living measure is lowest in Quebec. In 2024, the average Quebec household would have needed about $47,133 to live "modestly," compared to $56,059 in British Columbia, $55,041 in Alberta and $54,981 in Ontario.

This measure, however, masks significant cost differences between large cities and rural areas within a province or territory.

Another key consideration: income. Things usually cost more in regions with higher wages "because the general population can afford to pay more," said Charles St-Arnaud, chief economist at Servus Credit Union.

Excluding the territories, disposable incomes in Alberta remain significantly higher than elsewhere in the country, allowing its residents to absorb higher daily costs.

"This advantage however is eroding," St-Arnaud said. "Wages in the province are now almost equal to those in British Columbia and in Ontario. Therefore, there has been a considerable decline in Albertans’ purchasing power."

For most Canadians, housing makes up the largest chunk of their monthly budget. Vancouver and Toronto are the priciest cities for buying property, but which are the most affordable?

To answer this question, it’s important to understand that affordability boils down to three factors, according to Mathieu Laberge, chief economist at the Canada Mortgage and Housing Corporation (CMHC): "What you pay, what you can afford and what you can find."