Planning a move to Canada in 2026? Understanding changes in rent, food, utilities, and inflation can make all the difference. Here’s what newcomers should expect when planning their relocation to one of the world’s most welcoming countries.

For personalized immigration advice, visit Canada GMC, where we help migrants prepare financially and strategically for their move to Canada.

1. Overall Inflation Outlook

Canada’s inflation is projected to hover around the 2% target through 2026—a sign of relative price stability, according to the Bank of Canada. However, this doesn’t mean all costs stay flat; some essentials like housing and food may outpace general inflation. This matters especially for newcomers planning budgets in Canadian cities such as Toronto, Vancouver, or Montreal.

Annual inflation affects everything from rent and groceries to gas and insurance. Understanding how inflation shapes the cost of living is key for migrants looking to manage their expenses wisely.

2. Rent Trends: Challenges Ahead

Canada faces a rental housing shortage expected to worsen by 2026, with a projected deficit of over 120,000 purpose-built rental units. According to RBC Economics, limited new housing supply and growing immigration are likely to drive higher rent growth in urban centers.

For newcomers, this means:

• Higher competition for rental properties
• Increased rental prices in major metro areas
• Greater benefits from exploring smaller or mid-sized cities

Tip: Prioritize housing early and consider provinces with rent-control policies, such as Ontario (rent increase cap of 2.5%) and British Columbia (3% cap for 2025).

3. Grocery and Food Costs

Grocery inflation is forecasted to rise by approximately 2% to 3% in 2026, depending on regional factors and global trade trends. According to the Canada Food Price Report, produce, dairy, and meat are among the most volatile categories.

Budgeting tip:

• Use apps like Flipp or Reebee to compare grocery prices.
• Shop local and buy seasonal produce.
• Join community co-ops or bulk buying clubs.

4. Utilities Outlook

Utility costs in Canada can vary widely by province, but moderate increases are expected through 2026. Electricity and heating costs are typically higher in colder provinces like Alberta and Manitoba. Government policies, like rebates or energy caps, may help reduce bills.

Practical advice:

• Use smart thermostats and LED lighting.
• Look for energy-efficient rentals.
• Check with local municipalities for rebates or grants.

For more information, check your local energy provider or visit the Canada Energy Regulator.

5. Housing Prices vs. Rent

Canada’s housing market experienced a correction in 2024 and 2025, but prices are expected to stabilize with slight gains of 1% to 2% in 2026. For migrants, this presents a window of opportunity to plan future home ownership.

Tips for newcomers:

• Begin renting, then explore homeownership after 12–18 months.
• Use first-time buyer incentives.
• Research programs such as the First-Time Home Buyer Incentive.

The Canada Mortgage and Housing Corporation (CMHC) provides useful tools for homebuyers.

6. Salary Growth and Cost of Living

The Bank of Canada estimates economic growth at 1.8% in 2026. While inflation is stable, salary growth may not match rising costs in all sectors.

Suggestions:

• Research salaries through Job Bank Canada.
• Upgrade your skills with local certification programs.
• Use cost-of-living calculators to assess affordability by city.

Newcomers should prepare for higher initial costs during settlement and focus on upskilling to boost long-term earning potential.

Summary Table: Forecast 2026

What Newcomers Should Do Now

• Plan for higher rent: explore mid-sized cities.
• Track grocery prices: use mobile tools and local markets.
• Reduce utility costs: apply for green rebates.
• Research job prospects: align skills with in-demand roles.
• Join newcomer networks: get advice from peers in your city.

For more guidance, read our article on Renting Your First Home in Canada.

How Canada GMC Can Help

At Canada GMC, we understand that financial planning is critical to a successful move. We provide:

• Cost-of-living assessments tailored to your destination
• Support with budgeting and financial readiness
• Access to real estate and settlement services
• Information on provincial programs and tax credits

Book your one-on-one consultation at www.canadagmc.com today to prepare for your 2026 relocation.

Final Thoughts

While Canada remains an attractive destination for migrants, costs are evolving. By staying informed and preparing accordingly, you can ensure a smooth and financially sound transition.