The Most and Least Expensive Cities in Canada
Montreal is now Canada’s most expensive major city, while Calgary remains the most affordable—but all four cities are diverging in cost of living trends.
Canada’s four largest cities are experiencing starkly different inflation trajectories. Montreal has overtaken Vancouver and Toronto to become the most expensive, driven by housing and food costs. Meanwhile, Calgary remains the most affordable, though its costs are rising faster than in previous years. These divergences reflect shifting economic pressures and migration patterns across the country.
Montreal Takes the Top Spot: Why Costs Are Rising Fastest
Montreal’s Consumer Price Index (CPI) hit 177.6 in January 2026, making it Canada’s most expensive major city. Over the past year, prices rose 3.0%, outpacing Toronto (2.3%) and Vancouver (1.6%). The surge is largely driven by shelter costs, which increased 4.5% year-over-year, and food prices, up 3.2%. Since 2022, Montreal’s CPI has climbed 10.4%, the steepest rise among the four cities. This reflects both post-pandemic demand and structural housing shortages in Quebec’s largest city.
Montreal’s CPI growth outpaces peers
Source: Statistics Canada, Table 18,100,004
Vancouver’s Slowing Inflation: A Glimmer of Relief?
Vancouver’s CPI rose just 1.6% over the past year, the slowest increase among the four cities. Shelter costs, which have driven much of the city’s inflation in recent years, grew by only 2.1% year-over-year. However, Vancouver remains the second-most expensive city, with a CPI of 168.4. Since 2022, prices have climbed 8.9%, driven by high housing demand and transportation costs. The Bank of Canada’s interest rate hikes may be cooling the market, but affordability remains a distant prospect for many residents.
Vancouver’s inflation cools but remains elevated
Source: Statistics Canada, Table 18,100,004
Toronto’s Steady Rise: Housing Keeps Pressure On
Toronto’s CPI reached 166.1 in January 2026, up 2.3% from a year ago. Shelter costs, which account for nearly 30% of the CPI basket, rose 3.1% year-over-year, driven by high rents and home prices. Since 2022, Toronto’s CPI has increased by 11.7%, the second-highest among the four cities. Food prices, up 3.5% year-over-year, have also contributed to the squeeze. While inflation is moderating, the city’s high baseline costs mean residents feel the pinch more acutely than in other cities.
Toronto’s inflation remains stubbornly high
Source: Statistics Canada, Table 18,100,004
Calgary: The Affordable Outlier with Rising Costs
Calgary stands out as the most affordable of Canada’s four largest cities, with a CPI of 163.2 in January 2026. However, its costs are rising faster than in previous years, up 2.0% year-over-year and 10.0% since 2022. The increase is largely due to rising rents (up 4.2% year-over-year) and transportation costs (up 3.1%). While still cheaper than the other three cities, Calgary’s affordability advantage is eroding as migration from higher-cost provinces drives up demand.
Calgary’s affordability edge is shrinking
Source: Statistics Canada, Table 18,100,004
Where Are Canadians Moving for Affordability?
The diverging cost-of-living trends are reshaping migration patterns. Alberta, particularly Calgary, has seen an influx of interprovincial migrants, with net gains of over 50,000 people in 2024 and 2025. Quebec, despite Montreal’s rising costs, remains a draw for some due to lower taxes and strong job markets. Meanwhile, Ontario and British Columbia are seeing slower growth as high costs deter newcomers. These shifts reflect a broader rebalancing of Canada’s economic geography, driven by affordability pressures.
Migration flows reflect cost-of-living pressures
Source: Statistics Canada, Table 18,100,004