Newfoundlanders feel the pinch as cost of living rises across the island

Unique economic challenges facing Newfoundland and Labrador

While Newfoundland and Labrador generally boasts a lower-than-average cost of living, the province contends with distinct economic pressures that set it apart, especially in rural communities.

One of the most significant factors is geographic isolation. As an island, nearly all goods must be imported, whether by ferry or air, driving up prices for food, construction materials and fuel. Rural communities often face even greater inflation due to limited supply chains and fewer retailers to create competition.

Unemployment and underemployment remain long-standing issues in many areas. While larger centres such as St. John’s offer more stable job opportunities in public administration, healthcare and tech, smaller towns rely heavily on seasonal industries such as fisheries, tourism and natural resources — sectors vulnerable to both market fluctuations and climate change.

Additionally, outmigration continues to affect the province’s economy, particularly among young people. Many leave for work or school in other provinces, leaving behind an aging population that creates more demand for healthcare and social services, but with a shrinking tax base to support them.

As Corner Brook resident and housing advocate Jill Wheeler told CTV News, “We’re facing rising prices like everyone else in Canada, but we don’t have the same infrastructure or supports to cope. For rural families, just getting to the grocery store can be a hardship.”

These challenges make affordability in Newfoundland a more nuanced issue than it appears on paper. While home prices may be lower than in Toronto or Vancouver, daily living expenses, especially in remote areas, can quickly erode those savings.

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Newfoundland’s cost of living compared to other provinces

Newfoundland and Labrador remains one of Canada's more affordable provinces. The average monthly cost of living for a single person, including rent, is approximately $1,671, roughly 10 per cent below the national average. For a family of four, monthly expenses average around $3,933, according to data from LivingCost.org.

In contrast, provinces such as Ontario and British Columbia face much steeper costs. Ontario’s average monthly rent sits at $1,877, while B.C. tops the country at $2,034. Newfoundland's average home price is about $370,000, significantly lower than Ontario’s $851,478 and B.C.’s $942,969, based on figures from Spring Financial.

Many residents in Corner Brook are expressing frustration, saying that rising costs are making it harder to stay in their own communities. As housing prices climb and everyday expenses increase, there's a growing call for greater support to help families remain rooted where they've lived for generations.

Comparing costs across Atlantic Canada

While Newfoundland and Labrador is affordable compared to the rest of the country, its cost of living is also lower than most other neighbouring Atlantic provinces.

In Nova Scotia, for example, the average rent in Halifax is over $1,600 — nearly double that of many parts of Newfoundland. Grocery and utility costs are also slightly higher on the mainland, driven by stronger demand and regional supply chain limitations.

Prince Edward Island and New Brunswick remain relatively affordable, though housing costs in Charlottetown and Moncton have risen sharply in recent years. According to the CMHC, the average rent in Charlottetown is now over $1,200, while in St. John's, it remains under $900.

When it comes to home ownership, Newfoundland still offers the lowest median home prices in the region, making it an appealing option for first-time buyers and retirees looking to stretch their dollars.

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Stretching your dollar in Newfoundland’s unique landscape

Newfoundland and Labrador's geography, with many rural communities scattered across a vast island, means residents often face higher costs for goods, fuel and transportation. Without inter-community public transit and with limited access to big box retailers in smaller towns, residents must think strategically about budgeting and spending.

Here are some practical ways Newfoundlanders can manage living expenses:

1. Carpooling and community driving groups: With no public transit in most rural areas, transportation is a major expense. Organizing local carpool groups or informal ride-share systems can drastically reduce fuel costs, especially for those commuting to work, medical appointments, or grocery stores in larger towns.

2. Bulk buying and food co-ops: Food prices in Newfoundland can be 10 to 15 per cent higher than the national average due to shipping costs. Joining or forming a community food co-op — where members split the cost of bulk groceries ordered from mainland wholesalers — can lead to savings. Some communities have even created shared gardens to grow produce locally.

3. Embrace energy efficiency: With long winters, utility costs can soar. Programs such as TakeCHARGE NL offer rebates and tips for making homes more energy-efficient. Switching to LED lighting, improving insulation and upgrading to high-efficiency appliances can result in noticeable long-term savings.

4. Shop local and second-hand: Shopping local supports the economy and can reduce transportation costs. Many Newfoundlanders also rely on community buy-and-sell pages, thrift store, and swap groups for household items, furniture and clothing.

5. Budget for seasonal expenses: Heating bills in the winter can spike. Planning ahead by setting aside funds monthly, even modestly, can help manage large seasonal costs. Some power providers also offer equalized billing programs to spread winter energy expenses throughout the year.

6. Take advantage of government and community programs: Residents can explore supports such as NL Housing Corporation (NLHC) programs, the Home Heating Supplement and federal child or senior benefits. Additionally, local churches and community centres often have emergency funds, food banks and utility support programs.

Affordability, adaptation and the island’s economic crossroads

As Newfoundland and Labrador grapples with the ripple effects of inflation, supply chain disruptions, and demographic shifts, the province finds itself at a crossroads.

While the cost of living may still be lower than in much of the country, that gap is closing, and for many families, especially in rural communities, even small increases in prices can tip the balance. In a province where geography, aging infrastructure and outmigration compound economic strain, affordability is no longer just a numbers game — it's a daily struggle.

But in true Newfoundland spirit, communities continue to adapt. Whether it's through grassroots initiatives such as food co-ops, energy efficiency programs or informal support networks, residents are finding ways to stretch their dollars and support one another. As the country navigates a period of economic uncertainty, the challenges facing Newfoundland and Labrador offer a clear reminder: Affordability isn’t just about price tags. It’s about access, equity and the ability to live and thrive where you call home.

Sources

1. CTV News: Snapshots of Canada: Newfoundland residents concerned about housing, affordability (April 2025)

2. LivingCost.org: Cost of Living in Newfoundland and Labrador (March 2, 2025)

3. Spring Financial: The Cost of Living in Canada - Is it Expensive? (November 22, 2024)