A recent report by 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, attributing this trend to evolving housing dynamics and not solely to housing costs. The study examined data from three census cycles to track changes in housing trends among millennials, Gen Xers, and baby boomers.
Statistics Canada found 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 in 1991 at the same age range. Furthermore, millennials exhibited the lowest home ownership rate among the three generations, 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.
This living arrangement was more prevalent in major cities like Toronto and Vancouver, known for their high housing costs. In Toronto, 26.1% of millennials lived with a parent in 2021, while the percentage was 19.3% in Vancouver.
Additionally, the report highlighted a decline in the proportion of millennials living with a spouse, partner, or child compared to previous generations. The escalating cost of housing in Canada relative to income growth has likely influenced these trends. The report referenced a CBC News analysis showing a substantial increase in housing prices compared to household incomes.
Despite recent declines in housing prices in some urban areas, such as big cities, the market remains challenging for first-time buyers. TD Economics predicts a slight decrease in home prices across Canada this year.
Statistics Canada emphasized that factors beyond affordability contribute to these shifting patterns, such as delayed family formation, extended educational pursuits, and unique cultural influences among different demographic groups. The report also noted variations in living arrangements and home ownership rates among different subgroups of millennials based on cultural backgrounds.
