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It is comparable to other large cities in North America, although not as expensive as New York or Los Angeles for example. People traveling from third-world countries may struggle more than those with access to the aforementioned currencies. As the general standards of the city are exceptionally good - by anyone's standards - the hostels are good. Even if you pick a cheap one, it would be value for money. Toronto can also get really expensive, as there are a few luxury options available.
For those who have a bit of cash to spend, there are a number of luxury 5-star hotels where you ca avail all the luxurious facilities. These are usually local brands or a Budweiser from the bordering United States. There are plenty of other alcoholic options available, as Toronto stocks liquor from many domestic breweries across the nation. Most clubs make their money on cocktails and mixers. Beer is not as overly priced, but still expensive nonetheless.
However, this is only at one or two premium places around town. Ethnic foods are a staple of the budget dining options. Thanks to a large volume of immigrants to North American countries, there are a number of options available. For those traveling on a budget, this is probably the best deal you can find. Alternatively, if the food is a great allure, things can get pricey.
Toronto has a lot to offer. It is a great way to experience the many flavors of Toronto, especially with its French heritage. The food is great, but things get pricey. Accommodation Couch surfing is definitely an option in Toronto.
The student lifestyle is quite vibrant, and you get a few people mainly guys who are willing to host a visitor for a short period of time. Always ensure that you setup your accommodation well in advance and that you contact the person and get to know them a bit. As an added form of protection, ensure that there is as little risk as possible by keeping some cash spare for a hostel or hotel room. Airbnb is a great medium.