Survey reveals Canadian cities have become more affordable in the last year while US city living has become costlier
Canadians struggling to keep up with the cost of living in major cities might not have noticed, but things have become more affordable – when compared to global alternatives.
An analysis of 227 cities across five continents shows that Canadian cities have slipped down the list of the most expensive to live in, while those south of the border are squeezing budgets harder.
The 2023 Mercer Cost of Living Survey has revealed that Canada’s most expensive city to live in, Toronto, is now ranked the 90th most expensive globally, while Vancouver is 116th. They have dropped one and eight places respectively since last year.
Montreal is down ten spots to 135th, Ottawa is down five to 137th, and Calgary is down four spots to 145th.
“Canada continues to be an attractive destination for remote workers,” said Nicole Stewart, principal, Career at Mercer Canada. “Extensive remote work flexibility is causing many employees to re-shift their priorities and think differently about where they want to work and live, and this will continue to force organizations to develop effective compensation strategies for their globally distributed workforces.”
Canada has benefitted from a recent decrease in the rate of inflation, but high interest rates are another factor determining the overall cost of living in international markets, so the resumption of Bank of Canada rate hikes will have an impact going forward.
US more expensive
In contrast, all of the cities in the United States that are included saw their cost-of-living ranking increase year-over-year. New York is the most expensive US city and the 6th globally, with Los Angeles in 11th place and San Francisco in 14th.
Detroit (up 27 spots), Houston (up 24), and Cleveland (also up 24) have all become far more expensive relative to others in the list.
Globally, Hong Kong came out as the most expensive city for international employees for another year in a row, with Singapore in second and three Swiss cities – Zurich, Geneva, and Basel – taking the third, fourth and fifth spots respectively.
