Toronto’s average residential sale price sits near $1.075 million, pushing first-time buyers toward homes under $750,000 and forcing many to look further from the city centre. Every kilometre of distance saves money at purchase but adds time on the road — and those commuting costs can quietly rival the mortgage payment itself. What looks like a good deal on paper often isn’t once you add up fuel, transit passes, wear and tear, parking, and the hours you can’t get back.
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This article is general information only and does not constitute professional advice. For your specific situation, consult a qualified professional.
Those four figures tell the story. The money you save on a cheaper home in the suburbs can get eaten — and then some — by the cost of getting to and from it. A 2021 Angus Reid survey found one-third of Canadians want a commute no longer than 15 minutes, and 22 percent would prefer to work entirely from home. But with some employers ending remote work, more buyers are being forced into a trade-off they didn’t fully price. Here’s what you actually need to know.
The term you’ll hear from mortgage brokers and real estate agents is drive until you qualify. It means buyers who can’t afford a home close to the city centre keep driving further out until they find a price they can manage. But the phrase qualify only refers to the mortgage approval — not the full cost of living there.
What I tend to notice is that first-time buyers hear “drive until you qualify” and think it’s a clever workaround. It can be, but only if you actually count the cost of the driving. If you’re comparing two homes in different corridors, the real affordability gap between Canadian cities isn’t just about price per square foot — it’s about how much you’ll spend getting to and from work every day.
The Real Price of a Long Commute in Canada
Most buyers focus on the purchase price and the mortgage rate. Those matter, but they’re only part of the picture. The true cost of homeownership includes transportation — and for many Canadians, that number is surprisingly large.
Research cited by The Energy Mix shows that transportation consumes 17.2 percent of Canadian household shelter-related budgets, while mortgages or rent take 16.5 percent. For very low-income households, transportation alone ate over one-quarter of before-tax income in the second quarter of 2023. That means the cheapest home in the furthest suburb can end up costing more each month than a slightly pricier place closer to work, once you add the car payments, fuel, insurance, maintenance, and parking.
The table below compares a typical downtown and suburban scenario using data from the Pembina Institute study and the RE/MAX Canada cost example. The figures are illustrative but grounded in what the research actually found.
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| Cost Component | Downtown / Location-Efficient | Suburban / Car-Dependent |
|---|---|---|
| Monthly housing (mortgage or rent) | Higher — e.g., $3,800 | Lower — e.g., $2,500 |
| Monthly transportation | Lower — e.g., $600 (transit pass + occasional car) | Higher — e.g., $1,400 (car payment, fuel, insurance, maintenance) |
| Total monthly cost | ~$4,400 | ~$3,900 |
| Annual transportation cost | ~$7,200 | ~$16,800 |
| Net monthly advantage | — | Household $300+ worse off vs downtown (Pembina) |
The suburban home appears cheaper — until you factor in what it costs to get anywhere. The Pembina study found that suburban transportation costs reached roughly $3,400 per month for some households, making downtown homes cheaper overall by about $2,900 per month. That’s an extreme example, but it shows the pattern.
What I’d do here: before falling in love with a listing that’s 45 minutes from your job, run the monthly numbers both ways. A growing number of Canadian buyers are pooling resources to afford locations closer to urban centres, and that approach often makes more financial sense than a long solo commute.
Mistakes Buyers Make When Weighing Distance Against Price
Only counting the mortgage, not the commute
The biggest mistake is treating the purchase price as the only number that matters. A $550,000 home with a $6,000 annual commute cost effectively becomes a $580,000 home over the first year, and that gap widens every year. Most buyers don’t add up what they’ll spend on fuel, transit passes, parking, and maintenance before they sign. The research from The Energy Mix makes it clear: transportation costs can exceed housing costs, but buyers rarely see them quoted side by side on a listing page.
Assuming a 45-minute commute is the same everywhere
A 45-minute subway ride where you can read or work is not the same as 45 minutes in stop-and-go traffic. The RE/MAX research highlights that commute quality matters for liveability. Stop-and-go driving raises stress, cuts into productive time, and adds to vehicle wear and tear. If your commute involves a congested highway, the real cost — both financial and personal — is higher than the clock alone suggests. A local real estate agent familiar with transit corridors can help you understand which commutes are manageable and which are draining.
Ignoring the return-to-office risk
During the pandemic, many buyers moved to smaller towns and rural areas, banking on permanent remote work. Some companies are now ending work-from-home policies, forcing employees back to the office. If you buy in a distant suburb assuming you’ll work from home, and that changes, your commute could jump from zero to 90 minutes overnight. The same RE/MAX research notes that this shift is already happening, and it’s reversing the pandemic-era trend of moving away from city centres.
Overlooking the vehicle cost spike
The median price of used vehicles that low- and middle-income families typically buy rose 110% from 2019 to 2023 — from just under $19,000 to about $40,000, according to AutoTrader data cited by The Energy Mix. New vehicle prices rose almost 70%, from $39,000 to $66,000. If a long commute forces you to own a second car or replace your current one sooner, that cost belongs in your home-buying budget. A reliable vehicle is a necessity for many suburban commuters, and the price of entry has shot up.
How to Evaluate a Commute Before You Buy
Map your total monthly transport cost
Start with the hard numbers. Fuel cost: multiply your daily round-trip distance by the number of working days per month, then by your car’s fuel consumption rate and current fuel price. Transit passes: check the monthly rate for your route. Parking: what does your employer charge, or what does a monthly lot cost near your office? Maintenance and depreciation: a common rule of thumb is $0.50 to $0.70 per kilometre for all-in vehicle costs. Add it all up and compare that figure to the mortgage difference between a closer home and a further one. You might find the closer home is actually cheaper.
Factor in the value of your time
Time isn’t free. If you commute 90 minutes each way, that’s 15 hours a week — nearly two full working days — spent in transit. The RE/MAX research notes that commute time increases stress, reduces productivity, and lowers quality of life. One way to value your time: multiply your hourly wage by the hours you spend commuting. If you earn $30 per hour, a 15-hour weekly commute costs $450 in lost time value. That’s $1,800 per month. Whether you put a dollar figure on it or not, time is a limited resource, and a long commute consumes it fast.
Check the transit corridor, not just the distance
Toronto’s average public transit commute is 56 minutes one way, covering 12.29 kilometres, according to Moovit’s 2023 data. That’s the third-longest average transit commute in North America, up from 52 minutes in 2020. But not all transit is equal. A home near a GO Train station with a direct line to downtown behaves differently than one requiring a bus to a subway to a streetcar. Spend a weekend morning driving or riding the actual route you’d take to work. Do it at the time you’d actually commute. What looks reasonable on a map can feel very different in real traffic.
Plan for the five-year picture
Your commute needs might change. A job transfer, a new employer, or a shift to hybrid work can alter the calculation entirely. The RE/MAX research emphasizes that preferences vary by life stage: young buyers without kids may trade commute time for square footage, while families with school-age children may prioritise proximity to schools and parks. Before buying, ask yourself where you’re likely to be in five years. If your industry is moving toward more remote work, a longer commute today might be temporary. If your employer is calling everyone back to the office, the commute cost is locked in. A broader look at whether Canadian housing will become more affordable can help you decide whether waiting or buying now makes more sense for your situation.
What I’d do: keep a spreadsheet for the first month after you move. Track every dollar spent on transport and every minute spent commuting. One month of real data tells you more than any estimate. If the total is higher than you expected, you’ll know before you’re locked into a mortgage.
Frequently Asked Questions About Commute Costs and Home Buying
What is the “drive until you qualify” strategy? ▾
How do I calculate my true commute cost? ▾
Is a 45-minute commute by transit better than a 45-minute drive? ▾
What if I work from home most of the time? ▾
What are the closing costs on a home in Canada? ▾
Does an electric vehicle reduce commute costs? ▾
The Commute Cost Is Part of the Purchase Price
When you buy a home, you’re also buying the commute that comes with it. The research is clear: transportation costs can match or exceed housing costs, and the further out you go, the more you spend on getting around. The “drive until you qualify” approach works only if you count every dollar and every minute — and most buyers don’t. If you’re looking at a home that saves you money on paper but costs you time and cash on the road, it’s worth asking whether you’re actually saving anything at all.
Remember: this article is general information only. For advice on your specific situation, speak to a qualified professional.
If this was useful, you might also want to read Why Canadian Real Estate Investors Are Looking Beyond Major Cities.
Sources and Further Reading
The Impact of Immigration on the Canadian Housing Market — Understand how population growth affects housing demand, pricing, and where buyers are looking.
Is the Condo Market in Canada a Safe Investment or a Risky Bet? — If you’re considering a more location-efficient property, this piece breaks down the trade-offs of condo ownership.
RE/MAX Canada (2024). The Trade-Off Canadians Can’t Escape: Time vs. Housing Cost. 🔗
The Energy Mix (2024). Commuting Costs Families More Than Housing as Affordable Homes Drive Buyers Out of Town. 🔗
RE/MAX Canada (2024). The Impact of Commute Time on Home Buying. 🔗
Moovit (2023). 2022 Global Public Transport Report — Canada. 🔗
Pembina Institute (2012). Location-Efficient Neighbourhoods Case Study. 🔗
Angus Reid Institute (2021). Canadian Commute Preferences Survey. 🔗
