A recent report from Statistics Canada revealed that in 2021, millennials were more likely to reside with their parents compared to baby boomers during their youth, with housing affordability being just one factor among many. The analysis, which examined data from three census cycles, showcased shifting housing trends among millennials, Gen Xers, and baby boomers.
Statistics Canada’s findings indicated that 16.3% of millennials aged 25 to 39 were living with a parent in 2021, a significant increase from the 8.2% of baby boomers who were in a similar situation in 1991. Additionally, millennials had the lowest rate of homeownership at that age range, with only 49.9% owning their homes in 2021, compared to 56.2% of Gen Xers in 2006 and 55.9% of baby boomers in 1991.
The trend was especially prominent in major cities such as Toronto and Vancouver, known for their high housing costs. In 2021, 26.1% of millennials in Toronto and 19.3% in Vancouver were living with a parent.
Furthermore, the proportion of millennials living with a spouse, partner, or child was lower than previous generations. While about 75% of baby boomers had such living arrangements in 1991, only 62.8% of millennials did in 2021.
The soaring cost of housing in Canada relative to incomes has likely influenced these patterns. While house prices have started to decline, particularly in big cities, the decrease has not yet made homeownership accessible to first-time buyers. The report highlighted that factors beyond affordability, such as delayed family formation and extended educational pursuits, have also contributed to these shifting trends.
Moreover, the report pointed out that cultural differences might play a role in these housing dynamics, noting that 39.4% of racialized millennials born in Canada lived with their parents, compared to only 14% of Canadian-born, non-racialized, and non-Indigenous millennials who did the same.