It’s no secret that Toronto is *ahem* not cheap. But if you were wondering just how expensive our lovely home can be, now you can find out. The 2020 Cost of Living Index is an annual report that takes things like rent prices, cost of transportation, food costs, entertainment and internet pricing, etc. and puts it all together to crunch out some numbers that reveal the annual price tag on calling Toronto home.
If that was a lot to follow, or if you’ve clicked on the link to the index and are a tad overwhelmed with all the numbers staring back at you, we’re here to break it down for you.
Let’s start by talking about those infamously high real estate costs that our lovely city is known for. In Toronto, the average renter spends $2349.07/month and the average homeowner spends $4223.56/month. The monthly rate for homeowners comes from the average cost of buying a house (a formidable $883,520) while taking into consideration things like home insurance, and property taxes.
Do you take the TTC or use a ride share app to get to work/school? On average, you’re spending $258.55 a month. If you think driving your own car would solve this pricy problem, think again. Turns out that last year Torontonians spent an average $557.54 monthly just on their cars! And this number wasn’t including parking permits or general maintenance. Yikes.
On top of all of this, there are still costs for things like food (averaging at $533.95/month), phone and internet ($155.96/month), entertainment ($178.96/month), or health and fitness ($64.75/month). So pretty much what we’ve learned today is we need a second and third job.
So to sum it up, in order to get by, renters in Toronto who take public transit need to make $55,500 before taxes. Those who drive need $61,000. Homeowners who don’t drive should be pulling in earnings around $88,000, and those who do around $94,000. Again, all of this before taxes. We cry.
If you’re wallowing in sadness over this not-so-surprising news, there is some hope. These numbers don’t take into consideration things like roommates or multi-income households. There are SOME ways to make this city a little more affordable. In the meantime, send this article to your boss along with a request for a raise.
TLDR: Toronto is very expensive.