76% of Torontonians call cost of living the city's biggest economic threat

For many Torontonians, this isn’t an abstract concern about municipal policy. It shows up daily in household budgets — and for a growing share of residents, it’s driving a critical choice: whether to stay in the city at all.

What the data shows

Surveying 801 adult residents ahead of Toronto’s municipal election, the polling highlights a city losing confidence in its economic trajectory. Overall, 55% of residents believe Toronto’s prosperity is on the wrong track, and 37% say the city is falling behind — compared to just 22% who feel it is moving forward. Furthermore, 57% report that it has become harder to get ahead in Toronto than in past years.

Why affordability is driving people out

The most striking finding for household planning is that 37% of Torontonians say they are likely to leave the city within the next five years due to affordability concerns. That number jumps to 52% among Gen Z residents and 46% among Millennials. These are demographics most likely to be renting, carrying student debt or trying to save for a home in an expensive housing market.

Residents also see a direct link between personal cost pressures and broader economic health:

• 92% state that the cost of living directly impacts Toronto’s long-term prosperity.
• 89% cite housing affordability as a major factor in regional competitiveness.
• 87% point to access to well-paying jobs as essential for economic sustainability.

“Torontonians know that despite some progress, the challenges facing this city are significant. They want leaders who are prepared to act with urgency,” noted Giles Gherson, president and CEO of the Toronto Region Board of Trade.

Running the “stay-or-go” calculation

For residents evaluating whether to relocate, the decision generally hinges on three core factors: housing costs relative to income, local career advancement opportunities and the financial trade-offs of moving.

Staying often makes sense for residents with below-market rent, established career networks, or local family support that would be costly to replicate elsewhere. However, for early-career professionals with greater location flexibility, moving to a lower-cost area in Ontario or another province can significantly boost purchasing power.

Rather than reacting emotionally to living costs, run a formal comparison: evaluate total housing, transportation, tax rates and local amenities in Toronto against your target destination, set against realistic earning potential in both locations.

Practical financial steps before deciding

• Audit total spending: Track every expense for two to three months — not just rent or mortgage payments — to identify where your budget is being squeezed most.
• Compare net take-home pay: Account for provincial tax differences and regional cost variations before accepting a job offer outside Toronto.
• Maintain automatic savings: Keep up TFSA or RRSP contributions even in small amounts; consistent automated transfers build long-term security even during tight budget cycles.
• Verify tenancy protections: If you rent in Ontario, confirm whether your current or prospective unit falls under provincial rent control guidelines before signing a lease.

While municipal policy shifts will take time to materialize, individual residents can take control of their immediate financial health. Running the numbers now — before a lease renewal or job transition forces a decision — provides the clarity needed to make the right move for your financial future.