1/ Today we look at new data comparing how much income people in major cities spend on two basic needs: housing and food. The Urban Stress Index, or USI, measures this pressure by combining rent costs and essential food spending as a share of income. The results reveal major differences across cities in Canada, Australia, and New Zealand.
2/ Housing remains the biggest driver of cost pressure. Cities like Halifax, Vancouver, and Toronto top the list, where rent alone consumes more than half of median income. When housing takes such a large share of earnings, workers have less flexibility in where they live and how they manage their finances.
3/ Food costs add another layer of financial strain. The Engels Index in the chart shows the share of income spent on food. While food spending is smaller than housing costs, it still pushes overall living expenses higher. In cities with already expensive housing, even moderate food costs can raise the total burden significantly.
4/ This is where remote work becomes increasingly important. When employees are able to work remotely, they are not limited to living near expensive job centers. Instead, they can move to cities with lower housing and food costs, reducing the overall share of income spent on essentials. For example, workers who leave extremely expensive markets may gain more financial stability while maintaining the same job.
5/ Of course, remote work does not completely solve cost of living challenges. Housing markets can adjust quickly when more people relocate, and some industries still require physical presence. Still, the ability to work from anywhere provides workers with more options than in the past. As remote work continues to expand, location flexibility may become one of the most important tools individuals have to manage rising living costs.
Dataset
Data Source
Statistics Canada. Distribution of employment income of individuals by sex and work activity.
https://www.statcan.gc.ca
Australian Bureau of Statistics. Average Weekly Earnings.
https://www.abs.gov.au
Stats NZ. Median Weekly Earnings.
https://www.stats.govt.nz
Rentals.ca Market Data.
https://rentals.ca
Domain Rental Report.
https://www.domain.com.au
Tenancy Services New Zealand Market Rent.
https://www.tenancy.govt.nz
Numbeo Cost of Living Data.
https://www.numbeo.com
