B.C., Vancouver are least affordable places to live in Canada: analysis

FILE: A crane is seen at a condo development under construction as condo and office towers fill the downtown skyline in Vancouver, B.C., on Friday March 30, 2018. THE CANADIAN PRESS/Darryl Dyck

Posted June 27, 2023 7:24 am.

Last Updated June 27, 2023 7:26 am.

It’s becoming harder and harder to save money, and the proof is in a new report that shows B.C. and Vancouver lead the way as the most unaffordable places to live in Canada, and that shouldn’t surprise anyone.

The folks at savvynewcanadians.com, a personal finance website, did some number crunching and bestowed upon us this so-called honour.

It found B.C. has the second-highest cost of living estimate. “Buying a house in B.C. costs a fortune, as prices exceed the country’s average,” the analysis explained. It also found the cost of basics like food and gas are really expensive.

It used data from Statistics Canada to create a household income-to-expense ratio and compared that nationwide.

In B.C., the average estimated expenditure per household was $79,591, while the median after-tax income for an “economic” family was $97,800. That leaves the estimated income to expense ratio in B.C. at 1.23, the worst in Canada.

Affordability ranking in Canada according to personal finance website, savvynewcanadians.com (Courtesy savvynewcanadians.com)

Despite the fact it’s expensive to live in B.C., it doesn’t necessarily have the highest expenses.

“Alberta boasts a good job market, as seen in its low unemployment rate and high median household income. Hence, most residents have more disposable income to meet their daily expenses. However, some utilities, like food and electricity, are on the upper side,” the personal finance company said.

Meanwhile, Vancouver has the highest cost of living index.

“Vancouver is the most expensive city, with a cost-of-living index of 121.3. Hence, its cost of living is 21.3 per cent more than the nationwide average,” the analysis found.

The cheapest province to live in is Quebec, where it finds the median household income is just under $90,000 and the average home price is $457,314. The cheapest city is Regina, where the cost of living is almost 17 per cent below the national average.

The most expensive cities in Canada according to personal finance website, savvynewcanadians.com. (Courtesy: savvynewcanadians.com)

Vancouver wasn’t the only B.C. city on the list of expensive places to live, Victoria, Nanaimo, and Surrey also cracked the top 10.

Despite this, Vancouver is consistently on top of the most livable cities. Last week, the Economist Intelligence Unit ranked Vancouver fifth out of 173 cities.

Is retirement feasible amid high inflation?

The report comes as people take to Reddit to wonder: Does anyone in Vancouver think they’ll ever be able to retire with the cost of living and inflation?

Many said no, while some admitted they’re looking to get a second job to supplement their current income because it’s not enough.

Others have a more dire outlook, saying, “I will die in the climate change wars, it’s all good,” one person wrote.

“It’s definitely becoming more difficult. Eighteen months ago, my income covered all my expenses and left room for healthy savings. Now, with the increase in mortgage rates, strata fees, and groceries, I’m really just treading water,” another post said.

This user offered some advice: “Get your RRSP set up, even if all you do is put $10/week or even $25/month into it. It will look sad and too small to do anything for a very long time, much less retire on, but you have set in motion the routine of paying forward to yourself every month. It’s never too late to start.”