Calgary, Montreal, Ottawa, Toronto, and Vancouver were all placed in the middle of the affordability rankings among 226 cities.
Canada’s major cities have seen a decline in affordability over the past year, driven primarily by soaring rents, yet they remain highly sought-after by international workers for their exceptional quality of life, according to a recent report on cost-of-living trends.
The Mercer Cost-of-Living City Ranking highlighted significant increases in living costs across Calgary, Montreal, Ottawa, Toronto, and Vancouver. These cities, while ranking in the middle globally among 226 cities assessed, saw Vancouver and Montreal in particular leap several spots due to steep rises in rental prices.
Toronto retained its position as the most expensive Canadian city, despite a slight drop in its ranking to 92 from 90 last year. Montreal followed at 101, with Ottawa at 118, and Calgary at 141, all marking noticeable climbs in the cost-of-living index. Mercer’s analysis underscored that escalating rents were the primary factor propelling these cities up the ranking ladder.
While Toronto experienced a marginal decline in average rents, other cities such as Vancouver, Montreal, Ottawa, and Calgary saw increases of six percent or more year-over-year, according to data from Rentals.ca. This surge in rental costs mirrors broader inflationary pressures evident in Statistics Canada’s latest Consumer Price Index (CPI) data, which reported an 8.9 percent year-over-year rise in the national rent index by May.
Economists predict that housing affordability challenges will persist in Canada due to rapid population growth, particularly among non-permanent residents like international workers. This demographic trend has outpaced new housing construction, resulting in persistently low vacancy rates and heightened competition for rental accommodations.
Despite these affordability concerns, Canadian cities continue to attract international talent due to their exceptional quality of life. In Mercer’s annual Quality of Living survey, all five cities ranked among the top 25 globally. This combination of relative affordability and high living standards positions Canada favorably for global workers seeking a balanced lifestyle.
Vince Cordova, Mercer’s North American mobility advisory lead, emphasized that while Canadian cities face cost-of-living challenges, they offer unique advantages compared to U.S. counterparts. “When you compare quality of living alongside cost of living, Canadian cities consistently strike a balance that is appealing globally,” Cordova noted. He highlighted that factors like higher salaries and lower taxes in the U.S. contrast with Canada’s cities, which present their own distinct set of benefits and challenges.
Looking ahead, the ongoing attractiveness of Canadian cities to international workers underscores the need for continued attention to housing affordability and broader economic policies. Cordova stressed the importance of addressing these challenges to maintain Canada’s global competitiveness and appeal as vibrant urban centers offering both economic opportunities and a high quality of life.
