A recent report by Statistics Canada reveals that millennials in 2021 were twice as likely to reside with their parents compared to baby boomers in their young adult years, showcasing a significant shift in housing trends. The study analyzed data from multiple census cycles to examine changing dynamics across three generations: millennials, Gen Xers, and baby boomers.
Statistics Canada found that 16.3 percent of millennials aged 25 to 39 were living with a parent in 2021, whereas only 8.2 percent of baby boomers were in a similar living situation in 1991. Additionally, millennials had the lowest rate of homeownership at those ages, with only 49.9 percent owning their homes in 2021, compared to 56.2 percent of Gen Xers in 2006 and 55.9 percent of baby boomers in 1991.
The trend was particularly pronounced in major cities like Toronto and Vancouver, known for their high housing costs. In Toronto, 26.1 percent of millennials were living with a parent in 2021, while in Vancouver, the figure stood at 19.3 percent.
The report also highlighted a decline in the share of millennials living with a spouse, partner, or child compared to past generations. Only 62.8 percent of millennials had such a living arrangement in 2021, whereas approximately three in four baby boomers had a similar setup in 1991.
The rising cost of housing relative to incomes in Canada has been a significant factor influencing these trends. According to a recent analysis by CBC News, lower-end home prices have surged by over 200 percent since 2024, while young dual-earner household incomes have only grown by 76 percent during the same period.
Although there have been some decreases in house prices, especially in larger cities, the affordability gap remains a challenge for first-time buyers. TD Economics predicts a slight decline of 0.3 percent in home prices across Canada this year, further complicating the entry of new buyers into the market.
Statistics Canada emphasized that factors beyond affordability, such as delayed family formation, extended educational pursuits, and cultural differences, have also contributed to the evolving housing patterns among millennials. The report noted distinctions in living arrangements and homeownership rates based on cultural backgrounds, with racialized millennials born in Canada more likely to live with their parents compared to non-racialized and non-Indigenous Canadian-born millennials.