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. The housing affordability challenge is not the sole culprit behind this trend shift.
Statistics Canada’s analysis of data from three census cycles compared the housing dynamics across generations: millennials, Gen Xers, and baby boomers. The study found 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 in 1991.
Moreover, millennials exhibited the lowest homeownership rate at the same age range compared to previous generations. In 2021, only 49.9% of millennials owned a home, whereas 56.2% of Gen Xers did in 2006 and 55.9% of baby boomers did in 1991.
This trend was particularly 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, and in Vancouver, the figure was 19.3%.
The proportion of millennials living with a spouse, partner, or child was notably lower than in past generations. While around three-quarters of baby boomers had such living arrangements in 1991, only 62.8% of millennials did in 2021.
The escalating housing prices in Canada, outpacing wage growth significantly over time, have likely contributed to this shift. According to a recent analysis by CBC News, lower-end home prices surged by over 200% since 2024, whereas young dual-earner household incomes saw a mere 76% increase during the same period.
Although housing prices have started to decline, especially in some major cities, the drop has not been adequate to facilitate entry into the market for first-time buyers. TD Economics projects a 0.3% slide in home prices across Canada this year.
Statistics Canada emphasizes that factors beyond affordability, such as delayed family formation and extended educational pursuits due to life expectancy, have influenced these changing patterns. The report also highlights distinct cultural behaviors across demographic groups as contributing factors.
The report further reveals that fewer millennials are parents compared to previous generations. However, among married millennials with children, the rate of homeownership closely mirrors that of baby boomers in 1991.
Additionally, the study indicates that 39.4% of racialized millennials born in Canada resided with their parents, whereas only 14% of Canadian-born, non-racialized, and non-Indigenous millennials did the same, suggesting cultural influences on living arrangements.
