Are you moving to Canada? There are many options available for your new home and the province of Newfoundland and Labrador is among the top options. This province is notable for its affordability and quality of life – something that is rare in most provinces in Canada. This guide will provide you with an insight into the cost of living in Newfoundland to help you decide if this is the ideal place to live.
Cost of Living in Newfoundland: Overview
Newfoundland is the easternmost province of Canada. This province is considered one of the best places to live in Canada due to its affordability. The cities in Newfoundland are cheaper than living in major cities like Toronto.
The most expensive city in Newfoundland in terms of cost of living is Happy Valley-Goose Bay. This city is located on the island of Labrador, which is the other part of the Newfoundland and Labrador province. This city has a cost of living that is 15 percent higher than the national average. The rental cost in the city is also 70% more than the average in St. John’s, the provincial capital. On the other hand, Cornerbrook is the cheapest city in Newfoundland.
The average cost of living in Newfoundland is $1,490. This makes it 1.12 percent cheaper than the national average.
Let’s take a closer look at the different aspects of living in Newfoundland and the costs associated with them.
The real estate cost in Newfoundland is cheaper than the national average. This low-cost real estate market makes it cheaper to buy a home or rent a property in Newfoundland compared with other cities or provinces in Canada.
The Newfoundland and Labrador Association of Realtors reports that the average cost of buying a home in St. John’s (the capital city of Newfoundland0 is $292,000 (as of December 2021). The cost of housing in the city increased by 9.4% based on a year-to-year comparison of the housing prices in December 2020. The average housing cost stated above refers to properties within the metro area of St. John’s.
Using the same source as above, the benchmark price for single-family homes in Newfoundland is $277,032. The average price for a single-family home also rose by as much as 11.9% from the previous year. The Canadian Real Estate Association reports that the average housing price for the province is $155,000.
If you plan on renting an apartment when you move to Newfoundland, the average cost of a 1-bedroom apartment within the city center is $859. If you are renting a larger apartment (such as a 3-bedroom unit), the rental cost goes up to $1,319. Rental properties outside the city center are cheaper with an average rent of $681 for 1-bedroom units or $1,136 for 3-bedroom units.
Food & Dining
Eating out is a common activity among Newfoundland residents. After all, the province is known for its strong local food culture. Fishing is a huge industry in the province, which is why seafood restaurants and dishes are abundant.
According to this Saltwire report, inflation in the province of Newfoundland has also resulted in the rising cost of food. Labor shortage and supply chain issues are directly responsible for driving food costs higher. The Canadian Food Price Report for 2022 forecasts a 7% increase in average food prices in the province. This forecast price increase is the highest in a decade. The outlook is positive, however, as experts predict that food prices will normalize once the supply chain issues are resolved.
An average cost for a restaurant meal in Newfoundland can range from $8 (for a modest meal like Poutine) to $22 for a dish like a stew. Basic food items in Newfoundland are still cheaper than those in other Canadian provinces. For example, a dozen large eggs costs $5.23 and half a kilo of chicken breast is $8. To sum it up, an average meal in a restaurant will cost $10 to $25 per person.
Transportation is affordable in Newfoundland. There are several transportation options available based on your budget and convenience.
The local transportation ticket in Newfoundland has an average cost of $1.95. The actual cost will vary depending on the distance traveled. An average taxi ride in Newfoundland costs $16. Meanwhile, the cost of gas or petrol is $1.26 per liter.
Canadian residents have to pay both provincial income and federal taxes. Property owners need to pay additional municipal taxes.
Meanwhile, the Harmonized Goods and Services Tax (HST) is paid for by the residents of Newfoundland whenever they purchase goods and services. The tax is already added to the total price of the item. The HST rate in the province is 15%.
The average salary for residents in Newfoundland is $2,842. This salary range is enough to cover the living costs of residents for 1.9 months.
According to data from Talent.com, the 2022 average annual salary for Newfoundland residents is $39,000. The average hourly salary rate is $20. Of course, the salary of the residents will vary according to the industry and their level of expertise.
An entry-level position in Newfoundland has a starting salary of $31,200 per year. Workers that are experienced or highly skilled have an average annual salary of $94,575.
How Does NL Compare to Other Provinces?
To determine the affordability of living in Newfoundland, it is best to compare it with other provinces in Canada. Here is a breakdown of the average cost of living (per person) in Newfoundland versus other Canadian provinces, according to data from LivingCost.org.
Based on the data from above, the cost of living in Newfoundland is among the lowest compared to other Canadian provinces (only New Brunswick has a cheaper cost of living). This factor is part of the reason why the real estate market in the province is globally competitive.Posted by Infinity Admin on