If you’ve been feeling like homeownership is slipping further out of reach, you’re not imagining it. Prices have surged in many markets, mortgage rates are still higher than what most of us got used to in the last decade, and the cost of getting the keys, from land transfer taxes to insurance, keeps stacking up.
But here’s the twist: in some parts of Canada right now, renting isn’t just the fallback plan for those who can’t buy. For buyers willing to invest in home renovation, even older or more affordable properties can be upgraded into modern and livable homes. It can actually be the financially smarter move. In certain cities and even in one province, renters are keeping tens of thousands of dollars in their pockets over a 10-year period compared to homeowners. That flips the usual “buy at all costs” narrative on its head, especially for younger Canadians weighing flexibility, lifestyle, and long-term financial security.
Key Takeaways
- Ontario is the only province where renting is clearly more cost-effective over 10 years, thanks to high home prices and moderate rent inflation.
- In big cities like Mississauga, Hamilton, Kitchener, and Abbotsford, renters come out ahead by tens of thousands.
- Buying beats renting over a 10-year horizon in 9 out of 10 provinces, but the gap can be surprisingly small in certain markets.
- Thanks to eye-watering rental rates, Vancouver and Toronto buck the “rent is cheaper” trend, even with sky-high purchase prices.
Alberta delivers one of the strongest buy cases, with homeowners saving about $56,500 over renters in 10 years.
The Big Picture: Province by Province
Using median home prices from the Canadian Real Estate Association and average rents from CMHC and Apartments.com, we compared the full 10-year cost of owning versus renting in Canada’s 10 largest provinces. Ownership costs factored in mortgage payments, taxes, maintenance, insurance, and transaction fees; rental costs included annual rent increases and tenant insurance.
Nine provinces favoured buying over renting. Newfoundland and Labrador, New Brunswick, and Saskatchewan offered some of the most compelling ownership advantages, with 10-year net costs coming in more than $40,000 lower than renting.
Alberta: Strong Case for Buying
Alberta stands out as one of the most buyer-friendly provinces in the country. Over a 10-year period, homeowners here save roughly $56,500 compared to renters. Relatively affordable home prices, moderate property taxes, and slower rent increases combine to make ownership a financially attractive choice.
British Columbia: High Prices, Still Worth It
British Columbia may have some of the highest property values in Canada, but ownership still wins in the long run. Buyers save about $41,900 over a decade, thanks largely to significant equity growth and rent levels that haven’t kept pace with home appreciation.
Manitoba: Affordable and Advantageous
In Manitoba, the math clearly favours buyers. Over 10 years, owning a home saves about $52,100 compared to renting. Lower-than-average property values and steady equity gains offset the costs of taxes and maintenance.
New Brunswick: A Clear Win for Buyers
New Brunswick offers one of the best ownership advantages in the country. With a savings gap of about $52,700 over a decade, buyers benefit from low home prices and reasonable property taxes that keep monthly costs manageable.
Newfoundland and Labrador: Atlantic Affordability
In Newfoundland and Labrador, buying is the smart money move. Over 10 years, homeowners save around $33,700 versus renters. Modest home prices and limited rent pressure make this a strong province for first-time buyers.
Nova Scotia: Ownership Leads by a Mile
Nova Scotia shows one of the largest buying advantages nationally. Homeowners here save about $102,700 over a 10-year span, driven by strong equity gains and rent increases that can’t match the wealth-building potential of ownership.
Ontario: The Outlier
Ontario is the only province where renting is cheaper than buying over the long term. Over 10 years, renters save roughly $11,600 compared to owners. High purchase prices, steep land transfer taxes in major cities, and transaction costs erode the benefits of equity growth.
Prince Edward Island: Modest but Meaningful Savings
In Prince Edward Island, buying still edges out renting, but by a smaller margin. Over a decade, the savings amount to about $14,400. Affordable property values and manageable carrying costs keep ownership just ahead of renting.
Quebec: Equity Pays Off
Quebec offers a strong case for ownership, with homeowners saving about $61,600 over 10 years compared to renters. Balanced home prices, moderate taxes, and solid equity growth help make buying the better long-term choice.
Saskatchewan: Solid Savings for Buyers
In Saskatchewan, buying a home saves roughly $56,000 over a 10-year period. Low entry prices and stable operating costs make this prairie province one of the more financially secure places to own property.
The City Story: Where Renting Wins Big
When we zoom into Canada’s largest 25 cities, the picture shifts. While many markets still favour ownership, a notable cluster of urban areas heavily favours renting, particularly in Ontario and parts of Quebec and British Columbia.
Top “Rent Don’t Buy” Cities (10-Year Net Savings for Renters)
- Mississauga, ON – Renting saves about $13,300 over a decade.
- Hamilton, ON – Renting is cheaper by around $45,400.
- Kitchener, ON – Renters keep about $12,400 more.
- Sherbrooke, QC – Renting wins by roughly $33,300.
- Abbotsford, BC – Renters save an eye-popping $118,700 over 10 years.
These cities share a common profile: high home prices relative to local rents, plus property taxes and transaction costs that eat into the ownership advantage.
Where Buying Still Makes Sense (Even if It Hurts)
In hot-ticket cities like Vancouver and Toronto, you might assume renting is the slam-dunk choice, but our analysis shows otherwise.
- Toronto, ON – Despite a $1 million-plus median home price, buying edges out renting over 10 years by about $16,700.
- Vancouver, BC – With a median home price near $1.18 million, the ownership advantage is still around $100,500 over a decade, thanks to steady equity gains and slower rent growth.
In smaller, more affordable markets like Trois-Rivières, QC, and Regina, SK, the ownership advantage can be over $40,000, making the buy-now case even stronger.
Why This Matters for Today’s Renters
There’s a social media trend of “renting is always cheaper” that is hugely powerful right now, and in some markets, it’s spot-on. But it is not universal. The deciding factor often comes down to rent-to-price ratios, property tax rates, and how quickly rents are rising locally.
The Long-Term Cost of Not Buying
While renting can save money and offer flexibility today, it comes with long-term trade-offs:
- No equity growth – Homeowners in our analysis typically built $200,000–$500,000 in equity over 10 years. Renters do not see that value build.
- Exposure to rent inflation – Even modest annual rent hikes compound over time, potentially erasing short-term savings.
- Retirement security – Owning outright by retirement can significantly reduce living expenses; renting means carrying housing costs indefinitely.
- Sense of home and pride – Ownership often brings a deeper connection to a place. The ability to customize, renovate, and put down roots can foster a stronger sense of belonging and stability that renting rarely matches. Many homeowners start by investing in a kitchen renovation to personalize their space and increase long-term property value.
Still, for those in high “rent-is-cheaper” cities, the opportunity cost may be outweighed by liquidity, mobility, and the ability to invest savings elsewhere.
Methodology
Property purchase estimates are based on median home prices by province and city from the Canadian Real Estate Association. Rental costs are based on average rates for two-bedroom residences from Apartments.com and the Canada Mortgage and Housing Corporation (CMHC).
Ownership costs included mortgage payments (4.25% interest), property taxes, 1.5% annual maintenance, home insurance, land transfer taxes/fees, title fees, and inspection fees. Rental costs included tenant insurance and a 2% annual insurance increase, with rent rising 2.5% per year.
Net 10-year ownership costs account for equity built during the mortgage term. All figures are in Canadian dollars and based on 2025 pricing.
Fair Use Statement
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