Toronto and Calgary are major cities in Canada. Calgary is under the province of Alberta. Toronto is under the province of Ontario.
While Toronto is the most populous city in Canada with a population of 2, 731, 571 people in 2016. Calgary is the second-most populous city in Western Canada. With a stand-alone population of 1,239, 220 people in the year 2016.
But this is as far as the similarities get between the two cities. Calgary falls into the middle ground especially in terms of expenses. However, Toronto is regarded as one of the most expensive cities. Toronto ranks second on the list of the least most affordable city in North America.
HOUSING COSTS IN CALGARY
Housing costs in Calgary are reasonably affordable. Costs of living when it comes to housing are fair. Houses come at relatively low-level prices.
Downtown areas have studio apartments that range from $750 to $1000. A full month’s deposit is standard for most listings. This is added to the budget to get the apartment furnished.
People looking to set up long-term also have the housing market in Calgary in their favor too. The average price of houses is between 420,000 dollars to 470,000 dollars.
House bills are also fairly affordable in Calgary. You can pay between $200 to $250 per month for heat and electricity. This is in a three or four-bed property.
Calgary is an affluent city with cheap housing. It led Canada to median total housing income at $99, 583 in the last census. This was conducted in 2016. Other major cities like Toronto came in at $78, 373. Calgary scores well in key affordability measure-percentage of household income needed to pay the mortgage.
Calgary housing is affordable for one reason. It has a depressed economy caused by the low price of oil.
Recently, there has been a surge in housing prices. As of June 2021, the average house price is $499,111.
This is 7.3 percent higher than it was in the same month of 2020. The combined homes of single-family, condominiums, and attached homes were worth $460,099.
RENT PRICES IN CALGARY
Large apartments had an average cost of $1,400. You could get a medium apartment for the price of $1,200. While a small apartment and student dorm room cost between $600 to $990.
People living in Calgary should be willing to pay more than you would in most Canadian cities. It is a major city. However, it’s less expensive than its other major city counterparts.
HOUSING COSTS IN TORONTO
Toronto, a city famous for its many skyscrapers and high-rise buildings is regarded as one of the most expensive cities. Rents in Toronto, are among the highest in Canada.
Rent in the city is based on the size of the house or apartment. The amenities that come with it also affect price, rather than the neighborhood you live in.
However, apartments at King West, Downtown Core, Rosedale, and Summer Hill, are more expensive.
Toronto is expensive for a number of reasons. The major reason is that it is in high demand. This demand causes inflation of rent prices by landlords.
Another reason for this expense is the economy. Compared to other cities, Toronto has more high-paying jobs. This also reflects on rent prices.
The price of an average detached home is about $1.35 million. Renting in Toronto is also expensive. To live alone in a single condo may set you back around $1500 to $1600 per month in rent.
There is great competition for the lease as demand continues to outweigh supply in the rental market. You may be subject to a credit card check and reference from the previous landlord before you can take out a lease.
Apartments come unfurnished. Therefore fixing up your apartment should be an added cost to consider.
Toronto housing market experienced a cooling downtrend. This is according to the Toronto Real Estate Board (TREB).
The real estate board says the pace of sales and prices of homes eased in June as covid cases subsided. The board further stated that 11,106 homes were sold in June. This is down from the 11,951 homes that were sold in May. However, it is up from the 8,645 last June.
The average selling price of a home in June was $1, 089, 536. This is a drop from the $1, 108,453 the month before and an increase from the $931, 131 a year ago.
RENT PRICES IN TORONTO
Starting January 2021, housing prices in Canada experienced a change. You can now secure a large apartment at $1,900. However, a medium apartment goes for $1,600.
They had small apartments going for 1,300 and student dorms for 750 Canadian dollars.
Toronto and Calgary are both amazing places to reside in Canada. The decision to own a house or rent in either of these places is dependent on certain factors.
Owning a house in Toronto is not cheap. However, it is considerably more economical than renting in Calgary.
Toronto is one of the business hubs of Canada. Living cost is generally expensive. This is unlike Calgary.
It is economical to buy a house in Toronto. Considering the amount spent on renting monthly. However, Calgary is different.
Calgary is not as economically buoyant as Toronto. Although it is a major city, it has its pitfalls. Toronto remains a place of many opportunities.
Asides from the hike in rent prices by landlords, renting a house is still expensive. This is why most advisors believe buying a home in Toronto is cheaper than renting.
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Sagar Sridhar is a personal finance blogger from Canada. His genuine passion for personal finance coupled with his unique style of writing is what stands out. Professionally, he is a computer engineer, agile certified and has a master’s degree in Project Management. His writing has been featured or quoted in the leading Canadian publications such as Credit Canada and many other personal finance publications. While he is juggling between his day job and blogging, he is the main author on this blog and has miles to go before making the final pit stop.