Cheapest Places to Live in Ontario (2026 Guide)
Ontario is home to over 15.6 million residents, and while it remains one of Canada’s most dynamic provinces, it’s also among the most expensive.
Housing prices have surged, and rent affordability continues to challenge families, newcomers, and students alike.
But here’s the good news: not all of Ontario is costly.
Across the province, there are budget-friendly cities where you can live comfortably, enjoy great amenities, and still save for your future.
This guide for 2026 explores the cheapest places to live in Ontario, comparing rent, home prices, job markets, and local lifestyles, helping you find a city that fits your budget and goals.
How We Ranked Ontario’s Most Affordable Cities
To create this ranking, we analysed data from Statistics Canada, Realtor.ca, Numbeo, and local housing boards (2024-2025 data). Cities were evaluated on:
- Average home prices in 2025
- Average rent for a one-bedroom apartment
- Overall cost-of-living index (housing, utilities, groceries, transportation)
- Employment opportunities and median household income
These 10 Ontario cities offer the best balance between affordability, safety, and livability.
What Makes a City Truly Affordable?
Affordability is about more than low rent. In Ontario, the true cost of living includes housing, utilities, groceries, transportation, and taxes.
| Expense Type | Why It Matters |
|---|---|
| Housing | Home prices and rent are usually your biggest expense. |
| Utilities | Northern cities face higher heating costs in winter. |
| Transportation | Gas prices in Ontario average 186 ¢/L, cheaper than in Newfoundland but higher than in Alberta. |
| Groceries | A typical grocery basket costs about $625.86 / month in Ontario. |
| Childcare | Parents spend roughly $7,800 per year on full-time care. |
To live affordably, consider all of these costs, not just housing.
Top 10 Cheapest Cities to Live in Ontario 2026
Is Ontario cheap to live in? Ontario has some of the most affordable cities in Canada. While big cities like Toronto can be expensive, many smaller cities offer lower housing costs, great amenities, and a high quality of life. Here are the top 10 cheapest cities to live in Ontario in 2026.
Northern Ontario – Low Costs and Natural Scenery
1. Thunder Bay – Ontario’s Most Affordable City
At a Glance:
- Average home price: $299,300
- Average rent (1 BR): $1,200
- Typical household income: $84,400
- Cost of living: Low
Thunder Bay consistently ranks as the cheapest place to live in Ontario, thanks to affordable housing and modest daily expenses. Situated on Lake Superior, it blends urban convenience with an outdoor lifestyle. Residents enjoy hiking, kayaking, and fishing while benefiting from short commutes and a strong sense of community. The economy focuses on healthcare, education, and light manufacturing, giving locals stable employment. For retirees and young professionals seeking low-cost living in Northern Ontario, Thunder Bay is an ideal choice, offering value and lifestyle together.
2. Greater Sudbury – Affordable Urban Centre in the North
At a Glance:
- Average home price: $299,300
- Average rent (1 BR): $1,200
- Main industries: Mining and education
- Cost of living: Low
Greater Sudbury offers an appealing mix of city amenities and affordable living. Surrounded by more than 330 lakes, it’s perfect for outdoor enthusiasts who want urban comforts at a lower cost. The city’s economy revolves around mining, healthcare, and post-secondary education, creating consistent job opportunities. Families appreciate the safe environment, cultural attractions, and reasonable property taxes. Compared to Southern Ontario, Sudbury’s housing market remains affordable, with average homes around $300 K and low monthly expenses, making it one of Ontario’s best value cities.
Southern Ontario – Urban Living for Less
3. Windsor – Affordable Border City with Strong Jobs
At a Glance:
- Average home price: $400,000
- Average rent (1 BR): $1,300
- Key sector: Automotive and manufacturing
- Cost of living: Moderate
Windsor combines low housing prices with reliable job opportunities across manufacturing, trade, and education. Situated across the river from Detroit, it provides international business access without big-city costs. Residents enjoy scenic waterfront parks, diverse restaurants, and one of Ontario’s mildest climates. With average rent near $1,300 and affordable property taxes, Windsor attracts families and newcomers searching for cheap housing near Toronto, yet with plenty of local employment. The balance of culture, industry, and cost keeps Windsor among Ontario’s best budget-friendly cities.
4. London – Family-Friendly City with Reasonable Housing
At a Glance:
- Average home price: $527,700
- Average rent (2 BR): $1,800
- Economy: Education and healthcare
- Cost of living: Moderate
Known as the “Forest City,” London is one of the most affordable mid-sized cities in Ontario for families. It features vast parks, quality schools, and a growing tech scene anchored by Western University. Despite moderate housing prices, daily expenses remain reasonable. The local healthcare sector offers stable employment, and the downtown area continues to be revitalised with cafes and cultural spots. London suits anyone seeking affordable family living in Ontario with reliable public services and access to Toronto within two hours.
5. Sarnia – Lakeside Lifestyle with Low Living Costs
At a Glance:
- Average home price: $430,000
- Average rent (1 BR): $1,500
- Feature: Lake Huron waterfront
- Cost of living: Low
Sarnia stands out for its affordable real estate and small-town hospitality. Located along Lake Huron, it offers beach access, nature trails, and family parks while maintaining one of Southern Ontario’s lowest housing costs. Utilities and insurance rates stay below provincial averages, and commute times are minimal. The community emphasises safety, outdoor recreation, and affordability, attracting retirees and first-time buyers alike. With strong local industries in energy and trade, Sarnia is a low-cost Ontario city with big amenities and an excellent quality of life.
6. Kitchener – Affordable Tech Hub in Waterloo Region
At a Glance:
- Average home price: $600,000
- Average rent (1 BR): $1,500
- Economy: Technology and education
- Cost of living: Moderate
Kitchener’s thriving tech ecosystem makes it one of Ontario’s best affordable cities for young professionals. Though not as cheap as Northern Ontario, it offers significantly lower housing costs than Toronto while providing access to top universities and innovative startups. Residents benefit from cultural festivals, walkable neighbourhoods, and short drives to nature areas. Public transport and infrastructure continue to improve, reducing dependence on cars. Kitchener remains a budget-friendly alternative to Toronto, where career growth and community coexist affordably.
Eastern Ontario – Historic Charm and Budget Homes
7. Kingston – Waterfront City with Balanced Costs
At a Glance:
- Average home price: $475,000
- Average rent (1–2 BR): $1,800 – $2,200
- Major employers: Education and healthcare
- Cost of living: Moderate
Kingston, often called the Limestone City, merges historic charm with a moderate cost of living. Its waterfront setting and rich arts and culture attract professionals and students from across Canada. Home prices and rents are reasonable compared to larger metropolitan areas, while access to healthcare and education is excellent. Kingston’s walkable downtown and seasonal festivals enhance livability. For those wanting affordable waterfront living in Ontario, Kingston provides a perfect balance between cost, culture, and opportunity.
8. Cornwall – Ontario’s Lowest Housing Market
At a Glance:
- Average home price: $250,000
- Average rent (1 BR): $1,000
- Lifestyle: Quiet and family-oriented
- Cost of living: Very Low
Cornwall remains one of the most affordable cities in Ontario to buy a home. Nestled along the St. Lawrence River, it offers peaceful neighbourhoods, affordable utilities, and a growing local job market. Residents appreciate the low property taxes, clean environment, and community events. Its cost of living is among the lowest in the province, making it popular with retirees, young families, and remote workers looking for cheap housing options in Ontario without compromising safety or comfort.
9. Belleville – Family-Friendly and Budget-Conscious
At a Glance:
- Average home price: $400,000
- Average rent (1 BR): $1,200
- Lifestyle: Education and community
- Cost of living: Low
Belleville combines small-city warmth with affordable family housing. Located near Prince Edward County, it offers lakeside views, good schools, and access to regional healthcare facilities. Home prices and rents are lower than Ontario’s average, appealing to both first-time buyers and downsizers. With ongoing infrastructure growth and a friendly downtown, Belleville continues to attract residents seeking low-cost Ontario cities with quality of life and strong educational opportunities.
10. Peterborough – Arts, Nature, and Affordable Homes
At a Glance:
- Average home price: $363,000
- Average rent (1 BR): $1,575
- Community: Arts and outdoors
- Cost of living: Low
Peterborough offers a relaxed pace and affordable real estate just 90 minutes from Toronto. It’s known for vibrant art festivals, access to Kawartha Lakes, and a tight-knit community atmosphere. Housing remains inexpensive relative to income, attracting students and remote workers. The combination of cultural life, nature, and cost efficiency positions Peterborough as one of the best small Ontario cities for affordable living in 2026.
Ontario Affordability Comparison for 2026
| City | Avg Rent (1 BR) | Avg Home Price | Cost of Living | Region |
|---|---|---|---|---|
| Thunder Bay | $1,200 | $299 K | Low | North |
| Sudbury | $1,200 | $299 K | Low | North |
| Windsor | $1,300 | $400 K | Moderate | South |
| London | $1,800 (2 BR) | $527 K | Moderate | South |
| Sarnia | $1,500 | $430 K | Low | South |
| Kitchener | $1,500 | $600 K | Moderate | South |
| Kingston | $1,800–$2,200 | $475 K | Moderate | East |
| Cornwall | $1,000 | $250 K | Very Low | East |
| Belleville | $1,200 | $400 K | Low | East |
| Peterborough | $1,575 | $363 K | Low | East |
Affordable Cities Near Toronto (Commuter Options)
Living close to Toronto can be expensive, but some nearby cities offer a more budget-friendly lifestyle. These places provide lower housing costs. But they still keep you within commuting distance of Toronto’s job market, entertainment, and amenities.
Oshawa
Oshawa, part of the Durham Region, is about an hour’s drive east of Toronto. It’s known for its rich automotive history and growing cultural scene. As of early 2025, the average house price in Oshawa is approximately $700,000, with a monthly mortgage payment of around $3,500. Generally.
Hamilton
Hamilton, located southwest of Toronto, is famed for its industrial roots and vibrant arts community. The city boasts numerous waterfalls and parks. In early 2025, the average house price in Hamilton is approximately $750,000. Renting a one-bedroom apartment averages $1,900 per month.
St. Catharines
St. Catharines, known as the “Garden City,” is in the Niagara Region. It’s celebrated for its parks and proximity to Niagara Falls. As of early 2025, the average house price is approximately $650,000. On average, renting a one-bedroom apartment costs about $1,700 per month.
Barrie
Barrie, situated north of Toronto along Lake Simcoe, offers a blend of urban and recreational opportunities. In early 2025, the average house price is approximately $700,000. Renting a one-bedroom apartment averages $1,800 per month.
Brantford
Brantford, located on the Grand River, is known for its historical significance and community spirit. As of early 2025, the average house price is approximately $600,000, with a monthly mortgage payment of around $3,000.
The Hidden Costs of Living in Ontario
When considering a move to Ontario, it’s easy to focus on visible expenses like rent and groceries. However, several less obvious costs can significantly impact your budget.
Winter Heating Expenses
Ontario’s winters are cold, especially in the north. Heating costs can be higher in these regions due to longer and harsher winters. Residents often rely on heating sources like natural gas, oil, or electricity, which can strain monthly budgets. It’s wise to budget extra for heating during the colder months.
Transportation Costs: Car-Dependent vs. Public Transit
Transportation expenses vary across Ontario. In cities like Toronto, public transit is widely available, making it easier to manage without a car. However, in smaller towns or rural areas, owning a car is often necessary. A 2012 study by the Pembina Institute found that living in “location-efficient” downtown neighbourhoods with easy access to rapid transit left households at least $300 per month better off than their car-dependent suburban counterparts.
Healthcare Access: Rural vs. Urban Disparities
Access to healthcare services differs between urban and rural areas. Urban centres typically offer a wide range of medical facilities and specialists. In contrast, rural regions may have fewer healthcare resources, potentially leading to longer travel times for medical appointments. This disparity can result in higher transportation costs and, in some cases, the need for private healthcare services.
Housing Affordability: A Growing Concern
Housing costs are a significant concern for many Ontarians. In the first quarter of 2024, renters spent 33.3% of their income on housing, while homeowners allocated 22.8%.
These percentages are substantial, especially considering other living expenses. In cities like Toronto, the situation is more pronounced, with residents dedicating a larger portion of their income to housing. A 2023 report indicated that mortgage payments in Toronto consumed 73.1% of the median pre-tax household income.
Future Trends: Ontario’s Affordability Outlook for 2025–2030
Ontario’s housing market will see many changes in the next few years. Prices may rise, but demand will also shift. Many factors, like mortgage rates and job growth, will shape affordability.
Economic Growth and Housing Activity
Ontario’s economy is expected to grow slowly in 2025. A stronger recovery may happen by 2026. Lower mortgage rates and new rules will help more people buy homes. However, recovery will not be the same everywhere. Expensive areas will see slower improvements.
Housing demand will rise as more buyers return to the market. Many first-time buyers will look for affordable homes. Resale homes may sell faster than new ones because they cost less. Prices will increase in 2026, but may slow down by 2026 – 2027.
Fewer New Homes Being Built
Housing construction will slow down between 2025 and 2027. Fewer condominiums will be built because of weak demand. In many cities, developers will struggle to sell new units. Rental apartment construction will stay high in 2025 and 2026. But in 2027, demand may slow as it drops.
Affordability Challenges Will Continue
Even with market changes, affordability will stay a problem. Home prices will grow more slowly in Ontario than in other provinces. Many investors will sell their rental properties due to rising costs. This will affect new condominium projects. Fewer investors mean fewer new apartments.
More Demand for Affordable Homes
Many buyers will look for cheaper homes in smaller cities. Ground-oriented homes, like row houses, may become more popular. More people may move out of expensive cities to find better options. The market will stay competitive, especially in major cities like Toronto.
Higher Mortgage Payments and Job Changes
Mortgage payments will go up between 2025 and 2027. People who bought homes during the pandemic may struggle with renewals.
The job market will also change. Unemployment may rise in 2025, but will improve by 2026. As the economy gets better, people will spend more. This could help the housing market, but changes will take time.
How to Choose Your Ideal City: A Step-by-Step Checklist
Finding the right city in Ontario takes planning. Some places offer great jobs, while others have lower costs. Here’s a simple checklist to help you decide.
Job Market vs. Lifestyle: What Matters More?
Do you need a city with strong job opportunities? Or do you prefer a peaceful lifestyle? Bigger cities, like Toronto and Ottawa, have more jobs. But smaller towns offer lower costs and a slower pace. Families may look for safe, family-friendly areas. Some might even prefer cheap cities in Ontario for students with lower rent and good transit.
Calculate Your True Monthly Costs
Living costs go beyond rent. Think about groceries, utilities, transit, and entertainment. Some cities may look affordable but have hidden costs. To make it easy, use a downloadable budget template to track your expenses.
Research the Best Places for Your Needs
If you have kids, look for the best places to live in Ontario for families. These areas should have good schools, parks, and healthcare. If you’re a student, check for affordable housing and public transit. Compare different cities to find the right match.
Visit Neighbourhoods Virtually
Can’t visit in person? No problem! Use Google Street View, virtual tours, and online forums. Check local Facebook groups and Reddit communities to learn from residents.
Consider Future Growth
Some areas are growing fast, while others remain quiet. Growing cities often experience rising property values and improved job markets. But they can also bring higher living costs. So, think about long-term stability when choosing a city.
Also Read:
Frequently Asked Questions
What qualifies as affordable housing in Ontario?
Affordability is more than just home prices. It includes rent, utilities, transportation, groceries, and local wages. A city is truly affordable if your income can comfortably cover basic needs without financial stress. Cities with low property taxes, cheap transit, and reasonable food prices are often considered budget-friendly.
How does Ontario’s affordability crisis compare to other Canadian provinces in 2025?
Ontario is still one of the pricier provinces, but some cities remain affordable. Housing costs in Toronto and Ottawa are higher than in Alberta or the Maritimes. However, smaller Ontario cities like Thunder Bay and Cornwall offer much cheaper living. Compared to British Columbia, Ontario still has more budget-friendly housing options outside big urban centres.
Which Canadian city has the most affordable housing?
As of 2025, Saint John, New Brunswick, is often ranked as the most affordable city for housing in Canada. Home prices are significantly lower than in major Ontario or B.C. cities, staying around $300,000 or less. Other budget-friendly cities include Regina, Saskatchewan, and Trois-Rivières, Quebec.
How has remote work influenced housing demand in smaller Ontario cities?
Remote work has made smaller cities more attractive. People are leaving Toronto and Ottawa to buy cheaper homes in places like Peterborough and Belleville. This shift has driven up housing demand, but these cities are still more affordable than big urban centres. More co-working spaces and better internet access are also supporting this trend.
What hidden costs should I budget for when relocating to Northern Ontario?
Living up north is cheaper, but some costs add up. Heating bills are higher due to cold winters. Gas and groceries can cost more since many items are shipped from far away. Car ownership is almost a must because public transit is limited. Also, home insurance may be pricier in remote areas.
Do property taxes vary significantly across Ontario’s cheapest cities?
Yes, property taxes differ a lot! Windsor has some of Ontario’s highest rates, while Thunder Bay’s are much lower. Cornwall, Sudbury, and Belleville have moderate rates. Before buying a home, checking local tax rates is a smart move.
Is gentrification a risk in Ontario’s affordable cities?
Yes, in some areas. Cities like Kitchener, London, and Windsor are seeing rising home prices as more people move in. This can push out long-time residents. However, smaller cities like Cornwall and Sarnia are still relatively untouched by gentrification.
What tenant protections exist in Ontario’s 2025 housing reforms?
Ontario has strong rent control laws for most buildings built before 2018. The latest reforms also limit rent hikes and make evictions harder without proper cause. Tenants also have better rights to dispute unfair landlord practices.
Are Ontario’s current affordability trends sustainable beyond 2025?
It’s uncertain. More people are moving to affordable cities, pushing up demand. Unless new housing is built quickly, prices could rise. However, government policies, like affordable housing projects, may help keep some cities budget-friendly.
What is the cheapest city to live in Ontario?
Thunder Bay and Cornwall offer the lowest housing prices and living costs in 2025.
Which Ontario city has the lowest rent?
Cornwall and Sudbury have one-bedroom rents of around $1,000–$1,200.
Where can families find affordable homes in Ontario?
London, Belleville, and Sarnia offer a combination of low housing prices and family-friendly amenities.
Are Northern Ontario cities cheaper than Southern ones?
Yes, Thunder Bay and Sudbury have much lower housing and utility costs than the GTA.
Is Ontario still affordable compared to other provinces?
Outside major centres, Ontario’s smaller cities remain cheaper than B.C. and parts of Alberta.
Conclusion
Choosing where to live isn’t just about cost—it’s about finding balance. Some cities offer great jobs but high expenses. Others are the cheapest places to live in Ontario. Your ideal city mostly depends on your lifestyle, budget, and future goals. Ontario’s housing market is always changing. Prices, rental demand, and job growth will shift over time. Staying informed helps you make smart decisions. No place is perfect, but with research, you can find a city that feels right. Take your time, plan wisely, and choose a place that fits your future.
