Save money on housing - in Canada

Cross-border survey indicates housing costs much lower in many parts of Canada than in the United States

By: Ish Theilheimer

  A cross-border survey appears to show that average Canadians pay a lot less for housing and associated costs than Americans in comparable cities. Real estate costs, rents, and utility costs are consistently higher in the U.S. both in exchange rate value and, often, in face value.
  Our survey has been examining costs of living, taxes and wages in six survey cities in Canada and three border states: Montreal; New York; Pembroke, ON; Traverse City/Northport, MI; Vancouver, BC; and Seattle/Olympia, WA.
 

The comfy 3-BR house might go for $150K in Montreal and $220K in Toronto, $210K US in Seattle, $375K in Vancouver or a whopping $600K ($900,000+ CDN) in New York

  As with other costs, variation is often as great from place to place within the same country as across the border. For example, Montreal, where you can buy a three-bedroom home in a nice neighbourhood for $150,000, consistently ranks lowest in all cost and income categories. New York, where the same home might go for $600,000 US, rates the highest. Seattle tends to come in below Vancouver, which has some of the priciest real estate in Canada.
  Both are so far off the scale that we've looked at a few figures from Toronto as well, to include a third large eastern city. But even Toronto, where that same home might sell for $220,000, doesn't come anywhere near New York in terms of living costs.
  For average small cities, Pembroke, ON and Traverse City, MI, remain fairly comparable in size and location. And although Traverse has experienced a tourist boom of late, they may be the most comparable cities in the survey in terms of wages and everyday living costs (see last week's installments).
  This is not true, though, when it comes to real estate costs. Our correspondent found a modest 3-BR house in a nice part of Traverse City with a US face value twice as high as the CDN face value of nice houses in Pembroke.
  As in previous installments, Seattle comes out cheaper than Vancouver in several, but not all, categories. That modest house rings in at $375,000 in Vancouver, if you can find it. The same home in Seattle might be a more reasonable $210,000 US.
  As with other living costs, there are variables that are impossible to calculate. The US, for instance, gives homeowners deductions for mortgage interest payments. Canada and some provinces give or have given a variety of homeowner grants for insulation, removal of insulation, renovation, and mortgage guarantees.
  The bottom line: don't look to the US for an affordable nest.

Item in CDN and US prices	Montreal	Toronto	New York NY
Costs to rent
2 BR apartment in downtown highrise, CDN	550	1,000	2,900
2 BR apartment in downtown highrise, US	379	690	2,000
2 BR apartment in low rent neighbourhood, CDN	400	600	1,450
2 BR apartment in low rent neighbourhood, US	276	414	1,000
Costs to purchase
Modest 3 BR in middle-income neighbourhood, CDN	150,000	220,000	870,000
Modest 3 BR in middle-income neighbourhood, US	103,500	151,800	600,000
Property tax on above, CDN	3,500	2,200	21,750
Property tax on above, US	2,415	1,518	15,000
Modest 3 BR in low-income neighbourhood, CDN	100,000	160,000	362,500
Modest 3 BR in low-income neighbourhood, US	69,000	110,400	250,000
Property tax on above, CDN	1,000	1,600	11,600
Property tax on above, US	690	1,104	8,000
Basic charge telephone, CDN	27.46	-	-
Basic charge telephone, US	18.94	-	-

Item in CDN and US prices	Pembroke ON	Traverse City MI
Costs to rent
2 BR apartment in downtown highrise, CDN	600	1160
2 BR apartment in downtown highrise, US	414	800
2 BR Apartment in low rent neighbourhood, CDN	450	797
2 BR Apartment in low rent neighbourhood, US	276	550
Costs to purchase
Modest 3 BR in middle-income neighbourhood, CDN	100,000	290,000
Modest 3 BR in middle-income neighbourhood, US	69,000	200,000
Property tax on above, CDN	1,500	2,900
Property tax on above, US	1,035	2,000
Modest 3 BR in low-income neighbourhood, CDN	60,000	116,000
Modest 3 BR in low-income neighbourhood, US	41,400	80,000
Property tax on above, CDN	1,050	1,595
Property tax on above, US	724	1,100
Electricity/KWH, CDN	0.076	*
Electricity/KWH, US	0.052	*
Water and sewage charges per month, CDN	15.66	22.47
Water and sewage charges per month, US	10.80	15.50
Basic charge telephone, CDN	19.98	32.42
Basic charge telephone, US	13.78	22.36

* first 420 KWH x .062212 next KWH x .138812