A recent study by Statistics Canada revealed that in 2021, millennials were twice as likely as baby boomers to reside with their parents during their young adult years. The analysis compared housing trends across three generations: millennials, Gen Xers, and baby boomers, using data from three census cycles.
The report highlighted that 16.3% of millennials aged 25 to 39 were living with a parent in 2021, while only 8.2% of baby boomers were in a similar situation back in 1991. Additionally, millennials had the lowest rate of homeownership at that age compared to previous generations. Just under half of millennials, at 49.9%, owned their homes in 2021, in contrast to 56.2% of Gen Xers in 2006 and 55.9% of baby boomers in 1991.
The trend was more pronounced in major cities like Toronto and Vancouver, known for their high housing costs. In Toronto, 26.1% of millennials were living with a parent in 2021, while the figure was 19.3% in Vancouver.
Furthermore, the study found that fewer millennials were living with a spouse, partner, or child compared to past generations. Only 62.8% of millennials had such living arrangements in 2021, while roughly three in four baby boomers did in 1991.
The rising cost of housing in Canada, outpacing income growth, has likely influenced these trends. Lower-end homes have seen a more than 200% price increase since 2024, while young dual-earner household incomes grew by just 76% during the same period.
Despite recent decreases in house prices, especially in major cities, the market remains challenging for first-time buyers. TD Economics predicts a modest 0.3% decrease in home prices across Canada this year.
Statistics Canada emphasized that factors beyond affordability, such as delayed family formation and extended educational pursuits, have contributed to these shifting patterns. The report also highlighted differences in living arrangements among racialized and non-racialized millennials born in Canada, with cultural influences potentially playing a role.
In conclusion, the study sheds light on the evolving housing dynamics and living arrangements of different generations in Canada.