Toronto and Vancouver attract the most newcomers

By Shilpashree Jagannathan
New Canadian Media

Newcomers keep choosing Toronto and Vancouver at nearly the same rate as they did five years ago, according to the latest Statistics Canada’s census data.

More than 40 per cent (41.2 per cent) of all recent immigrants settled in one of the two metropolitan areas every year since 2016.

What has changed is the cost of that choice.

bunq, a Netherlands-based digital bank that operates across Europe but does not offer accounts in Canada, included Canadian cities in its Working Abroad Index for the first time in September. The study examined the cost of living across 75 cities that attract “digital nomads.”

Researchers found that in nearly every expense category, Toronto and Vancouver are cheaper compared to international standards, but the cost of rent breaks the bank.

Vancouver had the seventh-lowest utility bills, below Bangkok and Ho Chi Minh City. Groceries, mobile data and utilities in both cities were much lower than what residents pay in Paris, Berlin and Madrid.

But rent consumed 71 per cent of a Vancouver resident’s monthly costs and renters in Toronto used 68 per cent of their expense costs on shelter, compared to 58 to 62 per cent in Berlin and Paris.

“Working abroad has stopped being a niche choice for only a handful of digital nomads,” said Joe Wilson, whose title at bung is Chief Evangelist.

“Our users move between countries for a season, a contract or a decade, and they expect their money to travel with them.”

According to the study, the two cities in Canada that attract the most newcomers are also the ones where affordability now depends on a single line item. Rent alone decides whether they can afford to stay.

“The purpose of this index is to put a number on a decision that millions of people are already weighing every year. In most of Europe, moving somewhere cheaper saves you a little on everything. In Canada, rent is basically the whole decision, which makes the math simple and the choice much more nuanced.”

According to a recent Rentals.ca analysis, a minimum-wage worker in Toronto needs to work 145 hours a month — nearly full time — to cover the average rent for a one-bedroom apartment. In Vancouver, those same renters work 150 hours to pay the cost of rent.

Typically, 160 to 170 hours is considered full-time work.

Rent isn’t just expensive for people comparing cities on a spreadsheet; it’s the dominant cost for everyone who doesn’t own their own home — and newcomers are more likely to rent.

Between 2011 and 2021, immigrant renter households grew more than twice as fast as immigrant owner households, meaning new arrivals are more exposed to a cost that keeps

High rent also impacts Canada’s temporary residents. TD Economics data shows non-permanent residents occupy rented housing at more than double the rate of Canadian-born residents. It takes immigrants five or six years before they own or rent at roughly the same rate as Canadian-born residents, according to the data.

The cost of this difference is retaining new Canadians.

Statistics Canada’s most recent figures show that 78.3 per cent of immigrants who arrived in Toronto in 2017 were still in the city five years later. That’s a drop of eight points compared to those who arrived a decade earlier. Many of those who left resettled in Oshawa and Hamilton, according to the study.

Vancouver’s retention rate held up somewhat better, dropping four points to 83.4 per cent.

The good news is that falling immigration numbers nationally are cooling the rental market, even as Toronto and Vancouver keep attracting their same share of a smaller immigrant pool.

TD Economics modelling shows that, had the inflow of immigrants nationally stayed at previous levels, rents across Canada would have climbed 5.5 per cent a year between 2025 and 2027.

The biggest effect would have been felt in B.C. and Ontario, which have the largest share of temporary foreign workers and students. By 2027, rent increases would have added about $1,100 a year to the average rent for a one-bedroom.

Working Abroad: The 10 Cheapest Cities

For Canadians able to work remotely, moving abroad can dramatically reduce monthly living costs. The 2026 bunq Working Abroad Index ranks Chiang Mai, Thailand, as the cheapest city in its survey, with estimated monthly expenses of about C$983, compared with more than C$3,400 in Vancouver.

1. Chiang Mai, Thailand — C$983 a month

Chiang Mai has become a major hub for remote workers because of its low rents, inexpensive food, reliable internet and large network of cafés and coworking spaces. A Canadian income can stretch several times further there than in Vancouver or Toronto.

2. Ho Chi Minh City, Vietnam — C$1,068

Vietnam’s commercial capital offers cheap housing, food and transportation alongside a fast-growing technology and business sector. Remote workers can live centrally at a fraction of the cost of major Canadian cities.

3. Kuala Lumpur, Malaysia — C$1,283

Kuala Lumpur combines relatively low rents with modern infrastructure, extensive public transit and widespread English use. It offers many of the conveniences of a major international city without the housing costs found in Canada.

4. Bangkok, Thailand — C$1,317

Bangkok offers affordable accommodation, inexpensive dining and strong international air connections. Its size, services and infrastructure make it attractive to remote workers looking for big-city living at much lower cost.

5. Oaxaca, Mexico — C$1,405

Oaxaca offers comparatively low housing and everyday costs in a city known for its food, culture and slower pace of life. It has become increasingly popular with freelancers and remote workers seeking an affordable alternative to larger North American cities.

6. Bucharest, Romania — C$1,502

Bucharest is one of Europe’s more affordable capitals, with lower rents and daily expenses than cities in Western Europe. Strong internet service and relatively inexpensive public transportation add to its appeal for remote workers.

7. Mérida, Mexico — C$1,544

Mérida combines lower housing costs with a relaxed lifestyle and strong cultural appeal. Its affordability has made it increasingly popular with foreigners looking for a longer-term base in Mexico.

8. Medellín, Colombia — C$1,686

Medellín has developed a sizeable digital-nomad community around its relatively low cost of living, mild climate and improving infrastructure. Housing, food and transportation remain well below typical Canadian prices.

9. Taipei, Taiwan — C$1,725

Taipei costs more than many Southeast Asian destinations but offers excellent public transit, fast internet and highly developed urban services. It provides a strong balance between affordability and infrastructure.

10. Sofia, Bulgaria — C$1,746

Sofia remains one of Europe’s cheaper capitals, with relatively low rents, transportation costs and everyday expenses. Good internet connectivity and easy access to other European destinations add to its appeal.