We all know living in Toronto is expensive, there's no surprise there. But a new report reveals just how costly Canada's largest city is for residents, and it's not looking good.
Based on the average cost of housing, transportation, groceries, internet bills and more, LowestRates.ca found that a homeowner who drives will need to make at least $84,000 before tax ($62,522 after tax) in order to survive in the city in 2021, while renters who drive will need to make $51,500 before tax ($40,199 after tax).
The report focuses on the cost of living for homeowners who have already secured a mortgage and does not factor in a home purchase down payment or the cost of entering the housing market -- as these would require a significantly higher salary.
The report looks at the monthly costs for homeowners and renters, and factors in estimated costs for housing, transportation, food, phone and internet, entertainment, and health and fitness.
READ: More Than 1/3 of Canadians Under 40 Give Up Dream of Owning a Home
Keep in mind, the report's numbers represent an estimate of what it costs to live in Toronto based on LowestRates.ca data, external sources, as well as personal experiences, so it’s entirely possible for people to live in the city for much less, while others may need much more to fund the sort of lifestyle they desire.
Here’s the official breakdown per month:
Renter:
- Housing: $1,914.50
- Transportation for transit rider: $263.00
- Transportation for driver: $577.99
- Food: $534.35
- Phone and Internet: $172.63
- Entertainment: $60.94
- Health and Fitness: $63.32
Total for renters who commute: $3,008.74 monthly, or $36,104.88 annually
Total for renters who drive: $3,323.73 monthly, or $39,884.76 annually
Homeowner:
- Housing: $3,792.33
- Transportation for transit rider: $263.00
- Transportation for driver: $577.99
- Food: $534.35
- Phone and Internet: $172.63
- Entertainment: $60.94
- Health and Fitness: $63.32
Total for homeowners who commute: $4,886.57 monthly, or $58,638.84 annually
Total for homeowners who drive: $5,201.56 monthly, or $62,418.72 annually
Furthermore, based on the current tax rate in Canada and Ontario, the report says renters who commute will need to be making at least $45,500 before tax ($36,280 after tax), a year-over-year decrease of 15%, while renters who drive will need to make $51,500 before tax ($40,199 after tax), a 13% decrease from 2020.
Homeowners who commute will need to make $78,500 before tax ($58,709 after tax), a year-over-year decrease of 10%, while homeowners who drive need to make $84,000 before tax ($62,522 after tax), down 9% from 2020.
Though, due to pandemic-induced living restrictions, the cost of living for Toronto residents has declined, but this report is just another stark reminder of how unaffordable life in Canada's largest city can be.
Just remember not to spend that $15 a week of entertainment budget all at once and you should be just fine...
