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, with changing housing dynamics playing a significant role. According to StatsCan’s analysis of data from three census cycles covering millennials, Gen Xers, and baby boomers, 16.3% of millennials aged 25 to 39 were living with a parent, contrasting with 8.2% of baby boomers at the same age in 1991.
Additionally, the report highlights that millennials had the lowest homeownership rate at equivalent ages compared to previous generations. Only 49.9% of millennials owned their homes in 2021, in contrast to 56.2% of Gen Xers in 2006 and 55.9% of baby boomers in 1991. This trend was more pronounced in major cities like Toronto and Vancouver, where housing costs are notably high. In Toronto, 26.1% of millennials were living with a parent in 2021, along with 19.3% in Vancouver.
Furthermore, the report indicates a decline in the proportion of millennials living with a spouse, partner, or child compared to past generations. While 74% of baby boomers had such a living arrangement in 1991, only 62.8% of millennials did in 2021. The rising cost of housing in Canada, which has outpaced income growth, is considered a contributing factor. Lower-end home prices have surged by over 200% since 2024, while young dual-earner household incomes have only grown by 76% in the same period, as per a recent CBC News analysis.
Although house prices have started to decrease, especially in major cities, the adjustment has not been sufficient to enable first-time buyers to enter the market. TD Economics predicts a 0.3% decline in home prices across Canada this year. The report from Statistics Canada suggests that factors beyond affordability, such as delayed family formation, extended educational pursuits, and distinct cultural norms, have also influenced these shifting housing patterns.
Moreover, the report highlights differences among millennials based on ethnicity, with 39.4% of racialized millennials born in Canada living with their parents, compared to 14% of Canadian-born, non-racialized, and non-Indigenous millennials. This disparity hints at potential cultural influences on housing arrangements within different demographic groups.
