I'm in university right now and I'd say you shouldn't pick just based on price and the reputed academic quality. This is where you will live, learn, and love for four-ish years, so take more than the bare academic bones into account. If the university wasn't there, would you ever even consider living in the city/town? Pick somewhere you think is a good size, with a good attitude and feel, and where you think you will flourish emotionally and intellectually.
I chose McGill mostly based on the fact that it was located in Montreal. It's academic reputation was just the cherry on top, that I could definitely find elsewhere in the country. I've been doing fantastically, and I definitely attribute it to the great student and urban atmosphere in Montreal. I have friends from Toronto who went to various small city universities in the province and I think they got bored out of their minds with the non-urban setting and the non-urban people, they just couldn't connect. As a result, all of them are leaving and transferring to University of Toronto or straight up dropping out. Nobody at McGill here would even consider that.
So I would pick a college based on where you'd like to live, because if you're bored, depressed, or lonely, wherever you go it doesn't matter what sort of price or academic reputation the place has, you'll be miserable and your marks will be miserable. I would absolutely recommend living in residence. It's a fantastic experience, and those that live off campus don't have the same opportunity to make friends.