How Much Do You Need To Live Comfortably In Toronto?

Toronto is Canada's largest city, home to countless cultural institutions, sports teams, and global businesses. However, with the city's rising prominence comes a comparable rise in its cost of living. If you're considering moving to Toronto, you may be wondering: how much money do I need to live comfortably here? This informative and engaging guide provides a breakdown of the costs associated with living in this vibrant and dynamic city.

The Cost of Housing in Toronto

The Toronto real estate market is the primary driver of living expenses in the city. According to the latest data from the Toronto Regional Real Estate Board, the average cost of a detached home in Toronto stood at $1.4 million in 2021, while condominiums averaged around $700,000. Renting isn't much cheaper. The average rent for a one-bedroom apartment is estimated to be $2,000 per month. To maintain a reasonable standard of living, and allocate no more than 30% of your income towards housing, you would need to earn approximately $80,000 per year to afford the average rented one-bedroom apartment, or between $120,000 and $150,000 to comfortably service a mortgage on an average-priced home.

Cost of Public Transportation

The Toronto Transit Commission (TTC) operates the city’s public transportation. A monthly pass costs $156.00 for adults and offers unlimited travel on TTC services within the city. Based on this, the average individual would need around $1,872 annually for public transportation costs. This cost can be slightly lower if you take advantage of prepaid yearly plans, opt for biking, or live within a walkable distance to work or study.

Food Expenses

Toronto is a diverse city and this is reflected in its food scene. Grocery shopping will cost approximately $50- $100 a week per person depending on your diet. If you eat out at inexpensive restaurants a few times a week, expect to pay around $15 for each meal. Therefore, the average person could expect to spend approximately $400-$600 on food monthly.

Health Insurance Costs

Ontario has a provincial health care plan - the Ontario Health Insurance Plan (OHIP). While OHIP does cover many health services, it doesn't cover everything. Additional health insurance for services like dental care, prescription drugs, and optometric services can cost between $50 to $200 per month depending on the coverage level you choose.

Entertainment and Miscellaneous Expenses

This cost is hugely subjective and varies depending on personal interests and lifestyle. However, if you enjoy frequent outings to concerts, dining at upscale restaurants, and indulging in shopping trips, or memberships like fitness clubs, these could add up to around $200 - $500 a month. In conclusion, taking into account the median costs of housing, transportation, food, health insurance, and entertainment, an individual may need to make between $70,000 and $100,000 a year before tax to live comfortably in Toronto. Remember, 'comfortable' means different things to different people; this figure could be higher or lower depending on your lifestyle and individual circumstances. Earning within this range will afford you a lifestyle that covers all basic needs with some leisure activities. The key is to plan and budget effectively, to ensure you can enjoy all the opportunities that Toronto has to offer.