Costs of Living in Ottawa vs Toronto

Costs of Living in Ottawa vs Toronto

31.01.2025 | Community |
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When choosing a city to call home in Ontario, Ottawa and Toronto often come up as two of the top contenders. While both cities offer incredible opportunities, their cost of living, particularly when it comes to housing differs significantly. Let’s dive into the numbers and explore the related factors that make each city unique beyond just the price tag on homes.

Housing Costs

Toronto

Toronto is known as Canada’s largest city and an economic powerhouse but that reputation comes at a cost. As of late 2024, the average home price in Toronto hovers around $1.2 million for a detached house with semi-detached homes and townhouses not far behind. Condos, often seen as the more “affordable” option still average around $700,000. Renters face steep monthly payments too with one-bedroom apartments in the downtown core averaging around $2,600 per month.

Ottawa

Ottawa, Canada’s capital, is significantly more affordable. The average home price is approximately $700,000 and detached houses are often well within reach for families earning a combined household income. Condos in Ottawa average $400,000 to $450,000 making them a solid entry point for first-time home buyers. Renting in Ottawa is also easier on the wallet with one-bedroom apartments averaging $1,800 per month in the downtown core.


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Property Taxes and Utilities

Property taxes in Ottawa tend to be slightly higher than in Toronto averaging approximately 1% of the home’s value compared to Toronto’s rate of 0.6% to 0.8%. However, Ottawa’s utility costs, such as heating and electricity are generally lower thanks in part to its less densely populated areas and milder demand on infrastructure. For homeowners and renters alike these differences can balance out some of the housing cost advantages.

Commute and Transportation Costs

Toronto’s size means a sprawling transit network but that network often struggles with congestion and delays. Monthly transit passes in Toronto cost approximately $156 and parking fees for drivers can add up quickly. Gasoline prices also tend to be higher in Toronto due to greater demand.

In Ottawa, the cost of a monthly transit pass is approximately $125 and the city’s smaller size often makes driving throughout the city much more feasible. Parking costs are notably lower and commuting times are typically much shorter. These differences can add up to significant savings in terms of dollar value and time over the long term.

Income and Job Opportunities

Toronto offers higher earning potential across various industries, particularly in finance, tech and entertainment. The average salary in Toronto is approximately $70,000 per year compared to Ottawa’s $60,000. However, Ottawa boasts a stable job market dominated by government positions and high-tech jobs offering security and competitive salaries.

It’s worth noting that higher incomes in Toronto often get absorbed by the city’s elevated living costs leaving many residents with less disposable income than their counterparts in Ottawa.


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Lifestyle and Amenities

Toronto is a cultural hub offering a vibrant arts scene, world-class dining and endless entertainment options. However, these amenities often come at premium prices. A night out in Toronto can easily cost twice as much as in Ottawa from theatre tickets to sporting events to a simple dinner for two.

While Ottawa is smaller, it offers plenty of charm and activities. The city boasts scenic pathways along the Rideau Canal, excellent museums and a growing culinary scene. Its slower pace and smaller size also make it an ideal place for families and those seeking good work-life balance.

Education and Childcare Costs

For families, education and childcare costs are a significant consideration. Daycare costs in Toronto average approximately $1,600 per month, compared to $1,200 in Ottawa. Private school tuition also tends to be higher in Toronto reflecting the city’s overall cost of living.

Ottawa’s school system is highly regarded and the availability of affordable childcare options makes it a more family-friendly choice.

Quality of Life

Quality of life is subjective but Ottawa often ranks higher in this category due to its affordability, green spaces and lower stress levels. Toronto’s fast-paced environment appeals to those who thrive in a bustling metropolis but it can be overwhelming for others.

Making Your Choice

The costs of living in Ottawa versus Toronto boil down to personal priorities and lifestyle preferences. Toronto offers higher salaries and endless entertainment options but also at a premium price. Ottawa provides a more affordable and family-friendly environment with excellent job stability and a high quality of life.

For those looking to buy a home, Ottawa is the clear winner in terms of affordability. However, if you’re drawn to the energy and opportunities of a global city then Toronto may be worth the investment.

At the end of the day, choosing between Ottawa and Toronto is about finding the right fit for your budget and lifestyle. If you’re navigating the housing market in either city, our team is here to help guide you through every step of the process. Let’s find the perfect place to call home. Whether it’s the vibrant streets of Toronto or the scenic charm of Ottawa.

Searching for a great home? We can help! Call 613.909.8100 or reach us by email at info@PilonGroup.com.

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