Despite this trend, cities like Toronto, Vancouver, Montreal, Ottawa, and Calgary remain highly appealing to international workers due to their exceptional quality of life.
In Mercer’s ranking, which compares consumer prices across 226 cities worldwide, Canadian cities occupied mid-range positions. Toronto emerged as the most expensive Canadian city at 92nd place, slightly down from 90th the previous year. Vancouver followed at 101st, with Montreal at 118th, Ottawa at 126th, and Calgary at 141st. The shifts in rankings were primarily influenced by escalating rental costs, particularly noticeable in Vancouver and Montreal.
According to Vince Cordova, Mercer’s North American mobility advisory lead, the country does well at balancing high costs and comfort of living. He emphasised that while Canadian cities may rank relatively high in cost, they offer significant benefits in terms of lifestyle and amenities.
Rent increases have been a key driver of affordability challenges across these cities. According to Rentals.ca data, while Toronto experienced a slight decline in rents year-over-year, Vancouver, Montreal, Ottawa, and Calgary saw substantial increases ranging from six to over 17 per cent. This inflationary pressure on rents has been underscored by Statistics Canada’s latest CPI data, which reported an 8.9 per cent rise in the national rent index in May.
Looking ahead, economists foresee ongoing affordability issues in Canada, driven by population growth outpacing housing supply and persistently low vacancy rates. The influx of international workers, including non-permanent residents, has contributed significantly to this demand for housing, intensifying competition for rental properties.
Despite these challenges, Canadian cities continue to attract international talent due to their high quality of life. In Mercer’s companion ranking on quality of living, all five Canadian cities featured in the top 25 globally. Cordova highlighted Canada’s appeal as offering a blend of affordability and livability, distinguishing it from other international destinations.
“While the U.S. may offer higher salaries and lower taxes, Canadian cities present unique advantages and challenges,” Cordova remarked. He pointed out that Canada’s cities occupy a special niche in the global landscape, balancing affordability with robust infrastructure, healthcare, and overall quality of life.
As Mercer’s data illustrates, the trajectory of housing affordability in Canadian cities remains a critical issue. Balancing economic growth with housing supply will be pivotal in ensuring these cities continue to offer attractive living conditions for both residents and international workers alike.
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