Why Newcomers Are Choosing Smaller Cities Over Toronto in 2025

For many newcomers to Canada, the dream of settling in a bustling metropolis like Toronto is losing its shine. The skyrocketing cost of living, coupled with overcrowded public transit and limited affordable housing, creates a daunting barrier for those starting fresh. Newcomers choosing smaller cities are finding relief from these challenges, discovering vibrant communities that offer affordability, opportunity, and a better quality of life without the big-city stress.

The Rising Cost of Living in Toronto

Toronto’s appeal as Canada’s economic hub is undeniable, but the financial strain is pushing newcomers away. In 2025, the average rent for a one-bedroom apartment in Toronto hovers around $2,500 per month, according to recent housing reports. Combine that with high childcare costs, steep grocery prices, and taxes, and it’s no surprise that many newcomers feel priced out before they even settle in. Smaller cities like Halifax, Kitchener, or Kelowna offer significantly lower living costs—often 20-30% less for housing—making it easier to save and thrive.

Smaller Cities Offer Job Opportunities Too

Contrary to the myth that big cities hold all the jobs, smaller Canadian cities are stepping up. Places like Waterloo and London, Ontario, boast growing tech and healthcare sectors, with companies actively hiring skilled newcomers. For example, Waterloo’s tech hub has attracted firms like Shopify, offering roles that rival Toronto’s opportunities. These cities also have less competition for jobs, meaning newcomers can often secure positions faster and build careers without the cutthroat pace of Toronto.

A Stronger Sense of Community

Toronto’s fast-paced lifestyle can feel isolating, especially for newcomers navigating a new country. Smaller cities, on the other hand, foster tight-knit communities that make integration easier. In cities like Fredericton or Victoria, local festivals, community centers, and newcomer support programs help people feel at home. For instance, Halifax’s multicultural events and settlement services provide tailored support, from language classes to job fairs, creating a welcoming environment that Toronto’s overstretched resources often struggle to match.

Better Work-Life Balance in Smaller Cities

Living in Toronto often means long commutes and packed schedules, leaving little time for family or personal growth. Smaller cities offer a slower pace and shorter commutes, giving newcomers more time to enjoy life. In Kelowna, for example, residents are minutes away from outdoor activities like hiking or skiing, blending work with leisure effortlessly. This balance is a game-changer for newcomers who want to build a fulfilling life without sacrificing their well-being.

Affordable Housing Makes a Big Difference

Housing is often the biggest hurdle for newcomers, and Toronto’s market is unforgiving. With detached homes averaging over $1.2 million, homeownership feels like a distant dream. In contrast, cities like Saskatoon or Moncton offer homes at half that price, with more space and access to nature. Even renting is more manageable, allowing newcomers to settle comfortably while saving for the future. This affordability reduces stress and opens doors to long-term stability.

Why Smaller Cities Are the Smart Choice in 2025

Newcomers are voting with their feet, choosing smaller cities over Toronto for practical reasons: lower costs, growing job markets, stronger communities, and a balanced lifestyle. While Toronto remains a cultural powerhouse, its challenges are steering people toward places where they can build a life, not just survive. If you’re a newcomer planning your move in 2025, consider exploring Canada’s smaller cities—you might find the fresh start you’re looking for.

A New Path for Newcomers in 2025

The shift toward smaller cities reflects a broader trend: newcomers are prioritizing affordability, community, and balance over the hustle of big-city life. By choosing places like Halifax, Waterloo, or Kelowna, they’re finding not just a place to live, but a place to belong, setting the stage for a brighter, more sustainable future in Canada.