Toronto is a fantastic city. It’s the capital of Ontario that provides many opportunities to a diverse amount of people. The metropolitan itself is the largest in Canada with over 2.8 million citizens. Add in the surrounding area, and the population soars to 5.5 million. With that size of a city, the opportunities for every person at any age seem endless.
Maybe the opportunities are endless. But for the younger generation, there is one significant obstacle standing in their way – it is quite expensive. But by how much? A report by LowestRates.ca breaks down how much it would cost for a young person to live in Toronto this year.
The Biggest Expense – Rent
LowestRates.ca calculated the average rent per month in Toronto to hover around $1,672.13/month. That is a $300 increase compared to last year’s rent numbers coming in at $1,334.75. That equals to over $20,000 a year spent just in rent. Keep in mind that is only for a one bedroom apartment. Rent increases, even more, when looking at multiple bedrooms or condos.
So what is driving rent to be so high? There are multiple factors, not just the demand. Larger cities tend to have many goods and services available, but not all within reasonable distances from where you live. So an apartment closer to downtown will be more expensive than the same apartment 15 minutes away. This also factors in public transportation since the closer to downtown you are, the more likely you will be to take some form of public transportation.
Other Utilities – Phone/Internet and Transportation
So already your rent has taken a significant portion of your monthly income. Now you have to add all the smaller expenses. More than likely if you live in Toronto as a young person, you will rely on public transportation. Expect to pay roughly $176.25/month according to LowestRates.ca’s study. Luckily for you, there won’t be a fare increase this year, but that isn’t always the case.
Tack on another $127.50/month for your phone and internet bill. Although service providers are now competing against one another (which thankfully drives prices down slightly), expect to pay at least $100/month for basic packages still.
We are not done yet though. You’ll be needing groceries. The average Canadian spends roughly $200/month at the grocery store – per person. Toronto citizens should budget for approximately $280/month for groceries, which should be no more than 15 percent of your gross income.
Now while you live in Toronto, you’ll want to go out now and then to have some fun. LowestRates.ca broke down an entertainment budget into multiple different categories. Although this will vary from person to person, a general idea would be to budget roughly $350/month.
Another expense to add to the list. If you want to stay fit, you’ll be heading to a gym. The average gym membership is $75/month. That doesn’t include specialty classes like yoga or the new craze of barre fitness.
So for a young person living in Toronto, expect that your monthly expenses will hover around $2,700/month – that is over $32,000 a year. You will need to bring in an annual net worth of at least $40,500 before taxes to make ends meet.