A recent report from Statistics Canada reveals that in 2021, millennials were twice as likely to reside with their parents compared to baby boomers during their young adult years, with housing affordability cited as only part of the reason behind this trend shift.
Statistics Canada’s analysis of data from three census cycles spanning different generations – millennials, Gen Xers, and baby boomers – unveiled that 16.3 percent of millennials aged 25 to 39 were living with a parent in 2021, in contrast to 8.2 percent of baby boomers at the same age range in 1991.
Furthermore, the report highlighted that millennials had the lowest homeownership rate among the analyzed generations. In 2021, only 49.9 percent of millennials owned their homes, while 56.2 percent of Gen Xers did in 2006 and 55.9 percent of baby boomers in 1991.
The housing trend was more pronounced in major cities like Toronto and Vancouver, known for their steep housing costs. In Toronto, 26.1 percent of millennials were living with a parent in 2021, while the figure stood at 19.3 percent for Vancouver millennials.
Additionally, the report pointed out that fewer millennials were living with a spouse, partner, or child compared to previous generations. While about 75 percent of baby boomers had such a living arrangement in 1991, only 62.8 percent of millennials did in 2021.
The soaring cost of housing in Canada, which has outpaced income growth over time, likely contributed to these housing dynamics. Lower-end homes saw a more than 200 percent price increase since 2024, while young dual-earner household incomes grew by just 76 percent during the same period, according to a recent analysis by CBC News.
Despite some recent declines in house prices, especially in major cities, the market remains challenging for first-time buyers. TD Economics predicts a marginal 0.3 percent decrease in home prices across Canada this year.
Statistics Canada emphasized that factors beyond affordability, such as delayed family formation and extended educational pursuits, may also play a role in these shifting housing patterns. Cultural differences among demographic groups were highlighted as potential influencing factors in the report.
Moreover, the report showcased disparities in living arrangements among racialized and non-racialized millennials born in Canada, suggesting that cultural backgrounds could impact housing choices.
In conclusion, the report sheds light on the evolving housing dynamics among different generations in Canada, highlighting a complex interplay of economic, social, and cultural factors influencing millennials’ living situations.