A recent report revealed that in 2021, millennials were twice as likely to reside with their parents compared to baby boomers during their young adult years. Statistics Canada conducted an analysis using data from three census cycles to examine housing trends among millennials, Gen Xers, and baby boomers.
The findings showed 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 living situation back in 1991. Homeownership rates among millennials at that age were also lower compared to previous generations, with only 49.9% owning a home in 2021, in contrast to 56.2% of Gen Xers in 2006 and 55.9% of baby boomers in 1991.
This trend was particularly noticeable 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 in Vancouver, the figure stood at 19.3%.
Additionally, the proportion of millennials living with a spouse, partner, or child was lower than in previous generations. While about 75% of baby boomers had such living arrangements in 1991, only 62.8% of millennials did in 2021.
The escalating housing costs in Canada, which have outpaced wage growth, have likely influenced these trends. According to a recent analysis by CBC News, the prices of lower-end homes have surged by over 200% since 2024, while young dual-earner household incomes have grown by just 76% in the same period.
Although there has been a slight decline in house prices, particularly in major cities, it has not yet made it easier for first-time buyers to enter the market. TD Economics predicts a 0.3% decrease in home prices across Canada this year.
Statistics Canada pointed out that factors beyond affordability, such as delayed family formation and extended educational pursuits, may also contribute to these shifting housing patterns. Cultural differences across demographic groups could also play a role, as indicated by varying living arrangements among racialized and non-racialized millennials born in Canada.