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Toronto vs. Edmonton in 2025: Where Should You Put Down Roots? (Cost of Living Edition)
Explore the 2025 cost of living in Toronto and Edmonton. Compare housing, expenses, and more to make an informed decision for your move.
December 9, 2024
Toronto vs. Edmonton in 2025: Where Should You Put Down Roots? (Cost of Living Edition)
Dreaming of a change of scenery? Maybe the vibrant energy of Toronto calls to you, or perhaps the wide-open skies of Edmonton beckon. But before you pack your bags, it's essential to consider the cost of living in each city. After all, your budget plays a big role in determining where you can truly thrive. In this 2025 guide, we'll break down the key expenses in Toronto and Edmonton to help you make an informed decision and embark on your long-distance move with confidence.
Housing Costs (2025): Navigating the Market
Finding the right place to call home is a top priority, and both Toronto and Edmonton offer diverse housing options. However, their costs can differ significantly. According to recent data from Zolo, the average rent for a one-bedroom apartment in Toronto currently sits around $2,500, while a similar unit in Edmonton averages $1,600.
When it comes to buying, the gap widens further. The average home price in Toronto hovers around $1.1 million, while Edmonton's average home price is closer to $490,000. Of course, these are just averages, and prices vary greatly depending on the specific neighborhood and type of dwelling.
Looking ahead to 2025, experts at RBC Economics predict a slight cooling in Toronto's housing market, potentially bringing prices down slightly. However, affordability will likely remain a challenge. Edmonton, on the other hand, is expected to see continued moderate growth, making it a potentially more attractive option for those seeking homeownership.
Beyond the sticker price, it's important to factor in other housing-related expenses. Property taxes in Toronto are generally higher than in Edmonton. Additionally, first-time homebuyers in Edmonton may be eligible for incentives and programs that can help with down payments or closing costs.
Transportation in 2025: New Developments and Costs
Getting around efficiently is key, whether you're commuting to work or exploring your new city. Both Toronto and Edmonton offer public transportation networks, but their costs and coverage differ. In Toronto, a monthly transit pass with the TTC will set you back around $156. Edmonton's ETS offers a similar pass for approximately $100.
Looking ahead to 2025, keep an eye out for new developments. Edmonton's LRT system is undergoing expansion, which could improve commute times and connectivity in the coming years. Toronto is also investing in transit improvements, but navigating the city's traffic can still be a challenge.
If you prefer to drive, be prepared for varying costs. Gas prices tend to fluctuate, but generally, Edmonton enjoys slightly lower prices than Toronto. Car insurance premiums also tend to be higher in Toronto. And don't forget about parking! Finding affordable parking in downtown Toronto can be a real headache, whereas Edmonton generally offers more accessible and affordable options.
Beyond public transit and personal vehicles, both cities are becoming increasingly bike-friendly. Toronto has an extensive network of bike lanes, and Edmonton's river valley trails provide scenic routes for cyclists. Consider factoring in these alternative modes of transportation when comparing costs and convenience.
Everyday Expenses in 2025: Budgeting for the Future
Beyond housing and transportation, everyday expenses play a significant role in your overall budget. While both Toronto and Edmonton offer a high quality of life, the costs of groceries, utilities, and entertainment can vary.
Take groceries, for instance. According to Numbeo, a liter of milk might cost you $4.50 in Toronto, compared to $4.00 in Edmonton. Similarly, a loaf of bread could be $3.00 in Toronto and $2.50 in Edmonton. These small differences can add up over time, especially for larger families. However, both cities have diverse grocery options, from large chains to local markets, allowing you to find deals and shop according to your budget.
When it comes to utilities, be prepared for seasonal variations. Edmonton's frigid winters can mean higher heating bills, while Toronto summers might lead to increased electricity usage for air conditioning. On average, expect to pay around $200-$300 per month for utilities in Toronto and $150-$250 in Edmonton.
Entertainment costs can also differ. A movie ticket in Toronto might set you back $15, while a similar ticket in Edmonton could be $12. Dining out can also be slightly pricier in Toronto, with an average meal costing around $30 compared to $25 in Edmonton. However, both cities offer a wealth of free or low-cost entertainment options, from festivals and museums to parks and community events.
Looking ahead to 2025, it's wise to consider potential inflation. Experts predict a moderate increase in the cost of living across Canada. Building a buffer into your budget can help you navigate these rising costs comfortably.
Ultimately, the best city for you depends on your priorities and spending habits. If you enjoy frequenting upscale restaurants and attending live events, Toronto might align with your lifestyle. But if you prefer exploring the outdoors and taking advantage of free or low-cost activities, Edmonton could be a more budget-friendly option.
Healthcare and Childcare (2025 Outlook)
Access to quality healthcare and affordable childcare are essential considerations for anyone relocating, especially families. Fortunately, both Toronto and Edmonton offer publicly funded healthcare systems. In Toronto, residents are covered by the Ontario Health Insurance Plan (OHIP), while Albertans have access to the Alberta Health Care Insurance Plan (AHCIP). While both systems provide essential medical coverage, wait times for certain procedures and specialist appointments can vary.
When it comes to childcare, costs can be a significant factor for families. In Toronto, daycare fees can range from $1,500 to $2,000 per month, while Edmonton's average is slightly lower, around $1,000 to $1,500. Both cities offer various childcare options, from licensed daycare centers to home-based care. It's essential to research and compare options to find the best fit for your family's needs and budget.
Looking ahead to 2025, it's worth noting that childcare costs are projected to continue rising across Canada. However, both Ontario and Alberta have implemented initiatives aimed at improving affordability and accessibility.
Ontario: Ontario has implemented a program to reduce childcare fees to an average of $22 per day by 2025-26. This program involves affordability grants to licensed providers and increased family income thresholds for Child Care Subsidy eligibility. Parents can expect to see significant fee reductions in the coming years.
Alberta: Alberta also has a $10-a-day childcare plan in place, with funding from the federal government. This agreement aims to create more affordable childcare spaces and reduce fees for families.
Stay informed about these programs and policies as you plan your move.
The Verdict for 2025: Making the Right Move
So, which city comes out on top in this cost-of-living showdown? The truth is, there's no single winner. Both Toronto and Edmonton offer unique advantages and drawbacks, and the best choice for you depends on your individual priorities and financial situation.
As we've seen, Toronto generally has a higher cost of living across most categories, from housing and transportation to everyday expenses. However, it also boasts a larger job market, a wider range of cultural attractions, and a vibrant, cosmopolitan atmosphere.
Edmonton, on the other hand, offers a more affordable lifestyle, especially when it comes to housing. It also boasts stunning natural landscapes, a strong sense of community, and a growing economy.
To make the best decision for your 2025 move, consider these key factors:
- Your budget: Be realistic about your financial resources and how they align with the cost of living in each city.
- Your career goals: Research the job markets in both cities and see which one offers better opportunities in your field.
- Your lifestyle preferences: Do you crave the hustle and bustle of a big city, or do you prefer a more laid-back pace?
- Your priorities: What's most important to you - affordable housing, access to outdoor recreation, cultural attractions, or career opportunities?
By carefully weighing these factors, you can make an informed decision that sets you up for success and happiness in your new city.
Ready to take the leap?
MTS Moving is here to help you every step of the way. Use our moving calculator to estimate your relocation costs, explore our range of services, and let our experienced team handle the logistics while you focus on the excitement of your new adventure. Whether you choose Toronto or Edmonton, we'll ensure your move is smooth, stress-free, and filled with possibilities.
Resources:
Zillow:https://www.zillow.com/rental-manager/market-trends/toronto-on/#:~:text=The%20median%20rent%20in%20Toronto,%24200%20less%20than%20December%202023.
RentFaster.ca: https://www.rentfaster.ca/rent-report/
Realtors Association of Edmonton: https://realtorsofedmonton.com/market-stats/
Government of Ontario Property Taxes: https://www.ontario.ca/page/property-tax-0
City of Edmonton Property Taxes: https://www.edmonton.ca/residential_neighbourhoods/property-taxes
TTC: https://www.ttc.ca/
ETS: https://www.edmonton.ca/edmonton-transit-system-ets
Rates.ca:https://rates.ca/resources/heres-how-much-car-insurance-costs-your-province
OHIP: https://www.ontario.ca/page/apply-ohip-and-get-health-card
AHCIP: https://www.alberta.ca/ahcip