The Cost of Living in Toronto in 2025 | Housing, Rent, and Daily Expenses

Toronto—vibrant, dynamic, and one of the most exciting cities in North America. But is it affordable in 2025? Whether you’re considering a move, planning to upsize, or simply trying to make sense of your monthly expenses, understanding the cost of living in Toronto in 2025 is key to making informed decisions.

In this guide, we’ll walk through real-life numbers, expert projections, and the daily realities Torontonians are navigating. From housing and groceries to transit and entertainment, we’ll break it all down.

Let’s dive in.

1. Housing Costs: Still the Biggest Piece of the Pie

When people talk about the cost of living in Toronto, housing is always front and centre. It’s the single largest expense for most residents and continues to define the city’s affordability—or lack thereof.

Average Home Prices in 2025 - Property Type - Average Price (2025)

Detached Home - $1.65M - $1.75M

Semi-Detached - $1.25M - $1.4M

Townhouse - $950K - $1.1M

Condo - $720K - $850K

Market Trends:

• Prices have stabilized compared to the peak years, but affordability remains challenging.

• Condo ownership is the most accessible entry point, especially for first-time buyers and young professionals.

• Neighbourhoods like Scarborough, East York, and North York offer better value compared to downtown core.

Renting in Toronto (2025 Averages):

Unit Type - Average Rent

1-Bedroom - $2,450/month

2-Bedroom - $3,200/month

3-Bedroom - $3,900/month

What to Expect:

• Rent growth has softened in some pockets due to more supply hitting the market.

• Incentives like free first-month rent or reduced deposits are occasionally offered in competitive buildings.

• Commuter-friendly suburbs like Etobicoke, Scarborough, and parts of North York offer more space at lower prices.

2. Utility Costs: Rising, But Manageable

While housing dominates the budget, utilities quietly add up.

Average Monthly Utility Costs:

Expense - Average Monthly Cost (2-3 Bedroom Home)

Hydro - $120 - $150

Heating - $120 - $180 (higher in winter)

Water - $60 - $80

Internet - $80 - $120

Mobile Phone - $50 - $100 per line

Total Utilities - ~$430 - $630/month

2025 Trends:

• Energy-efficient appliances and smart thermostats can meaningfully lower hydro and heating bills.

• Some condos bundle heating and water into maintenance fees, offering more predictability.

• Internet competition remains low—most households are served by major providers like Bell, Rogers, or Teksavvy, with modest year-over-year increases.

3. Transportation Costs: Convenience at a Premium

Public Transit (TTC):

• Monthly pass: $156

• Single ride: $3.40

• PRESTO card users continue to benefit from slight per-ride discounts.

What’s New in 2025:

• The Eglinton Crosstown LRT is finally operational, improving commute times across midtown.

• GO Transit remains a solid option for suburban commuters, with monthly passes varying based on distance.

Driving Costs:

Expense - Average Monthly Cost

Gas - $1.70 - $1.85/L

Parking (Downtown) - $250 - $450/month

Insurance - $200 - $400/month

Car Payments - Varies by vehicle

Notes:

• Insurance rates remain among the highest in Canada.

• Many Torontonians opt to live car-free due to the expense and traffic congestion.

4. Groceries and Everyday Essentials

Average Grocery Costs for a Family of 2-4:

Item - Average Cost

Milk (4L) - $6.49

Eggs (1 Dozen) - $4.99

Bread (Loaf) - $3.49

Chicken (1 kg) - $13.99

Apples (1 kg) - $5.49

Coffee (Tin) - $11.99

Monthly Grocery Bill - $900 - $1,200

Key Insights:

• Groceries remain higher in Toronto compared to national averages.

• Specialty stores, organic markets, and imported goods push costs higher.

• Budget-conscious shoppers rely on No Frills, FreshCo, Costco, and ethnic supermarkets for savings.

5. Dining Out and Entertainment: Treats That Add Up

Toronto is a foodie paradise, but the costs stack up quickly.

Typical Costs:

Experience - Average Cost

Fast Food Combo - $12 - $15

Casual Restaurant Meal - $25 - $35

Mid-range Dinner for Two - $90 - $120

Movie Ticket - $15 - $18

Gym Membership - $60 - $100

Streaming Subscriptions - $12 - $25

Trends:

• Brunch culture is alive and well, but you’ll pay a premium at trendy spots.

• Local gyms, spin classes, and boutique fitness studios remain popular but are not cheap.

• Free activities like parks, waterfront trails, and community events offer affordable entertainment.

6. Childcare and Education: A Major Cost Factor for Families

Daycare and Preschool (Monthly Averages):

Age Group - Average Monthly Fee

Infant (0-18m) - $1,400 - $2,200

Toddler - $1,200 - $1,800

Preschool - $1,000 - $1,500

What’s Helping:

• The $10-a-day childcare program has expanded to more centres in 2025, though waitlists remain long.

• Public elementary and high schools are free, but private school tuition ranges from $20,000 to $40,000 annually.

7. Healthcare: Mostly Covered, But Extras Cost

• OHIP (Ontario Health Insurance Plan) covers essential medical services.

• Prescription drugs are partially covered depending on age and employment benefits.

• Dental, vision, and physiotherapy require private insurance or out-of-pocket payments.

Common Costs:

Service - Average Cost

Dental Cleaning - $150 - $300

Glasses - $300 - $600

Physiotherapy - $80 - $150/session

8. Lifestyle Add-Ons: Little Luxuries in the 6ix

If you enjoy the finer things—concerts, Raptors games, weekend getaways—Toronto makes it easy to spend more.

Examples:

Experience - Cost

Raptors/Leafs Ticket - $90 - $400+

Theatre Performance - $60 - $150

Weekend in Muskoka - $500 - $800

Toronto’s vibrant arts, sports, and music scene is a major draw, but tickets to flagship events remain premium-priced.

9. What’s Changing in 2025?

Key Shifts to Watch:

• Slower rent growth due to increased inventory, but competition remains for well-located units.

• Higher grocery costs continue to outpace wage growth.

• Interest rates have plateaued but remain higher than early 2020s levels, impacting mortgage affordability.

• Remote work flexibility is allowing some residents to relocate to more affordable suburbs while commuting occasionally.

10. Toronto’s Cost of Living in Context: Is It Worth It?

Living in Toronto is not cheap—but for many, the trade-offs are worth it.

Advantages:

• Access to world-class healthcare, education, and employment opportunities.

• A multicultural, globally connected city with something for everyone.

• Public parks, Lake Ontario, vibrant neighbourhoods like Kensington Market, The Beaches, Liberty Village, and Danforth.

Challenges:

• Housing costs remain out of reach for many young buyers.

• Commuting and traffic congestion persist.

• Inflation pressures continue to push everyday costs higher.

11. Tips to Thrive in Toronto in 2025

Strategy - Benefit

Consider living in the suburbs - More space, lower housing costs

Use public transit or go car-free - Significant monthly savings

Shop at discount grocers - Lower grocery bills

Take advantage of free activities - Entertainment without spending

Explore co-living or house-hacking - Offset high housing costs

Final Thoughts: Toronto in 2025—Expensive, But Full of Possibilities

Toronto’s cost of living in 2025 remains high compared to other Canadian cities, but it’s a city of opportunity, culture, and vibrancy. If you can navigate the expenses with a strategic mindset—whether by optimizing your housing choices, leveraging public transit, or embracing cost-saving habits—Toronto offers an incredible quality of life.

If you’re planning a move, upsizing from a condo, or searching for your first home, I can help you navigate the numbers and find your perfect fit. Reach out anytime for a friendly, data-driven conversation about your next step.