15 Cheapest States to Buy a House in 2025
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15 Cheapest States to Buy a House in 2025 (Ranked by Affordability)
Introduction
Affordability is one of the biggest factors people consider when choosing where to live. Buying a home is likely the largest purchase most Candians will make in their lifetime, and the cost of housing can significantly impact your long-term financial health.
In this post, we rank the top 15 cheapest states to buy a house in 2025. We used updated data on home prices, household income, cost of living, and utility costs to help you make an informed decision. If you’re looking for a state where your housing dollars go further, this list is for you.
National Averages in Canada (2025)
Population: 40 million+
Median Household Income: $75,452
Average Home Price (Canada-wide): $703,446
30% Affordability Rule: Housing costs should be ≤ 30% of your gross income
15 Cheapest Provinces & Territories to Buy a House in Canada
1. Newfoundland and Labrador
Median Home Price: $284,500
Median Household Income: $70,305
Cost of Living Index: 86.0
Housing Index: 68.2
Average Monthly Utilities: $180
Newfoundland offers coastal beauty and a low cost of living. St. John’s provides a vibrant arts scene, while rural areas offer quiet and affordability.
2. New Brunswick
Median Home Price: $290,300
Median Household Income: $72,075
Cost of Living Index: 87.1
Housing Index: 70.4
Average Monthly Utilities: $195
With a booming housing market and scenic views, New Brunswick is attracting new residents with its balance of affordability and quality of life.
3. Nova Scotia
Median Home Price: $349,200
Median Household Income: $74,250
Cost of Living Index: 88.4
Housing Index: 72.3
Average Monthly Utilities: $210
Home to historic Halifax and stunning coastlines, Nova Scotia combines lifestyle and affordability for remote workers and retirees alike.
4. Prince Edward Island (P.E.I.)
Median Home Price: $331,400
Median Household Income: $73,800
Cost of Living Index: 87.8
Housing Index: 71.6
Average Monthly Utilities: $190
P.E.I. is known for its relaxed pace, small-town charm, and cost-effective housing market—especially outside Charlottetown.
5. Manitoba
Median Home Price: $328,700
Median Household Income: $77,900
Cost of Living Index: 89.6
Housing Index: 74.2
Average Monthly Utilities: $200
From Winnipeg’s growing tech scene to peaceful prairie towns, Manitoba is a budget-friendly option with strong infrastructure and healthcare.
6. Saskatchewan
Median Home Price: $334,100
Median Household Income: $79,200
Cost of Living Index: 88.7
Housing Index: 73.1
Average Monthly Utilities: $190
With expansive landscapes and affordable homes, Saskatchewan offers space to grow—ideal for families and investors.
7. Quebec
Median Home Price: $421,100
Median Household Income: $78,450
Cost of Living Index: 90.3
Housing Index: 77.5
Average Monthly Utilities: $170
From Montreal’s culture to Quebec City’s charm, this province blends affordability with vibrant urban life. Provincial childcare and healthcare benefits sweeten the deal.
8. Alberta
Median Home Price: $447,600
Median Household Income: $85,300
Cost of Living Index: 92.1
Housing Index: 78.4
Average Monthly Utilities: $220
Alberta stands out with strong wages and no provincial sales tax. Calgary and Edmonton offer affordability relative to big-city standards.
9. Ontario (Certain Regions Only)
Median Home Price (Province): $868,000
Median Household Income: $86,900
Cost of Living Index: 95.5
Housing Index: 91.3
Average Monthly Utilities: $240
Ontario is expensive, but smaller towns in Northern and Eastern Ontario still offer deals below national averages. Cities like Thunder Bay or Sudbury are worth considering.
10. British Columbia (Selective Markets)
Median Home Price: $966,800
Median Household Income: $84,200
Cost of Living Index: 97.6
Housing Index: 92.8
Average Monthly Utilities: $250
B.C. is Canada’s most expensive province, but regions like Prince George and Kamloops provide value and access to outdoor adventure.
11. Northwest Territories
Median Home Price: $442,000
Median Household Income: $101,500
Cost of Living Index: 110.2
Housing Index: 85.5
Average Monthly Utilities: $280
Housing is reasonably priced relative to high wages, but the cost of living and utilities make affordability complex.
12. Yukon
Median Home Price: $512,300
Median Household Income: $96,800
Cost of Living Index: 107.9
Housing Index: 86.2
Average Monthly Utilities: $270
Whitehorse is seeing real estate growth, and though costs are high, salaries often keep pace. Ideal for those seeking adventure.
13. Nunavut
Median Home Price: $530,000
Median Household Income: $115,400
Cost of Living Index: 120.5
Housing Index: 90.1
Average Monthly Utilities: $300
Nunavut has the highest wages in Canada, but home prices and living expenses are also high. Consider only with employment secured.
14. Toronto, Ontario
Median Home Price (Toronto CMA): $1,105,000
Median Household Income: $98,300
Cost of Living Index: 102.8
Housing Index: 98.7
Average Monthly Utilities: $260
Canada’s most expensive market. Toronto is financially demanding even with a higher salary. Not ideal for affordability seekers.
15. Vancouver, British Columbia
Median Home Price: $1,231,000
Median Household Income: $90,700
Cost of Living Index: 105.9
Housing Index: 99.2
Average Monthly Utilities: $270
Vancouver tops the list for cost. Excellent lifestyle and job opportunities, but affordability is a concern without a high dual income.
Advantages of Living in More Affordable Provinces
Better Budget Flexibility: Spend less on housing and more on experiences, savings, or investments
Lifestyle Improvements: Shorter commutes, lower property taxes, more green space
More First-Time Buyer Support: Programs in affordable regions often target new homeowners
Disadvantages to Watch Out For
Fewer Job Opportunities: Smaller markets may not suit every profession
Lower Appreciation Rates: Home values may rise more slowly in less competitive markets
Limited Amenities: Some rural areas may lack public transit or healthcare services
How to Choose Where to Buy in Canada
Before deciding:
Research job markets, schools, and hospitals
Compare rural vs. urban property costs
Understand tax implications and provincial benefits
Evaluate lifestyle fit (climate, nature, community)
Final Thoughts
Affordability isn’t just about home price it’s about balance. Use this ranking as a starting point, but remember to factor in your income potential, lifestyle, and long-term goals.
Thinking of buying in Canada? Make sure you’re informed and make your move wisely.
