Are we comparing apples to apples? You can also find a room on peninsula for 1200-1500 with one housemate. A 2 bedroom apartment in Toronto in a neighborhood similar to where I live here in SV is going to be 2800/3000 CAD, I am paying 3K USD now. Car insurance $70 per month for 2 cars here, I used to pay $380 per month in Canada. My PGE bill is $50-70, in Toronto hydro/gas are going to be at least twice that. My brother paid $400 a month in heating costs last winter (4 year old insulated house). How about $10 beers, $30 entrees in restaurants (not fancy, just regular ones), more expensive gas, activities for kids. It all adds up. And you're missing the point, it's not that prices are high in absolute terms, but relative to salaries (which are very low). i'd be happy to come back to be close to my family, but I can't afford to take a 50%+ pay cut.