Vancouver & Toronto rank mid-table in bunq cost index

bunq has added Canada to its Working Abroad Index, which places Vancouver and Toronto in the middle of its global cost ranking.

The study shows that renting a one-bedroom home in either city costs more than in Paris, Berlin, Madrid, Barcelona, Milan or Munich, though total monthly living costs in the two Canadian cities remain well below those in the highest-ranked places in the survey.

Rent for a one-bedroom home averages CAD $2,442 a month in Vancouver and CAD $2,150 in Toronto, compared with CAD $2,005 in Paris and CAD $1,829 in Berlin.

Among the 75 cities in the index, Vancouver ranks 23rd for total monthly cost at CAD $3,424, while Toronto ranks 31st at CAD $3,160. The figures suggest housing is unusually expensive relative to many other day-to-day costs.

Vancouver's rent is higher than in 24 of the 28 European capitals included in the study, trailing only London, Dublin, Amsterdam and Luxembourg City. Toronto exceeds 23 of those capitals.

Housing burden

The index indicates that rent accounts for 71 per cent of a Vancouver resident's monthly outgoings and 68 per cent of a Toronto resident's. In Paris, the equivalent figure is 62 per cent, while in Berlin it is 58 per cent.

That helps explain why both Canadian cities rank lower overall than their rents alone might suggest. Excluding housing, many household costs compare favourably with those in large European and North American cities.

Utility bills are a notable example. For an 85-square-metre apartment, Vancouver's monthly utility bill averages CAD $118, the seventh lowest in the study and below Bangkok, Ho Chi Minh City and Medellín. Toronto's averages CAD $198.

Across Europe's capitals, the equivalent utility bill averages CAD $364. In Berlin, it reaches CAD $586, nearly five times Vancouver's level.

US comparison

Toronto's total monthly cost is lower than all 11 United States cities in the index. At CAD $3,160, it is below Chicago at CAD $4,132, Nashville at CAD $3,638, Austin at CAD $3,421 and New York City at CAD $6,590.

At CAD $3,424, Vancouver is below 10 of the 11 US cities and roughly level with Austin. Despite steep rents, both Canadian cities remain less expensive overall than most of the American locations measured.

Pressure points

Transport is one area where the Canadian cities compare less favourably with European peers. Toronto's monthly transit pass costs CAD $158, making it the ninth most expensive among the 70 cities in the index that offer one.

That puts Toronto above Paris at CAD $147, Vienna at CAD $122, Berlin at CAD $102, Amsterdam at CAD $101, Madrid at CAD $80 and Barcelona at CAD $49. Vancouver is closer to the middle of the ranking at CAD $118.

Mobile phone costs also stand out. Canadian cities rank in the global top 15 for a 10GB mobile package, at about double the average across Europe's capitals.

Global trade-offs

The findings also show how far a Canadian monthly budget stretches in lower-cost markets. One month of living costs in Vancouver would cover 3.5 months in Chiang Mai, 3.2 months in Ho Chi Minh City, 2.6 months in Bangkok and 2.0 months in Medellín.

A Toronto monthly budget would pay for 3.2 months in Chiang Mai and 1.6 months in Mexico City. Within Europe, a Vancouver month would cover 1.2 months in Lisbon, 1.4 months in Valencia and 1.8 months in Athens.

The index draws on figures for rent, groceries, utilities, mobile and home internet, public transport and co-working space across 75 cities in 41 countries. Rent was calculated as the average of a one-bedroom flat in the city centre and one outside the centre.

Joe Wilson, Chief Evangelist at bunq, commented on the results and how they differ from patterns seen in Europe. "Working abroad has stopped being a niche choice for only a handful of digital nomads. Our users move between countries for a season, a contract, or a decade, and they expect their money to travel with them. The purpose of this index is to put a number on a decision that millions of people are already weighing every year. In most of Europe, moving somewhere cheaper saves you a little on everything. In Canada, rent is basically the whole decision, which makes the math simple and the choice much more nuanced," Wilson said.