A recent study revealed that in 2021, millennials were twice as likely to reside with their parents compared to baby boomers during their young adult years. The analysis conducted by Statistics Canada examined data from three census cycles to evaluate housing trends across three generations: millennials, Gen Xers, and baby boomers.
The study found 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 situation in 1991. Additionally, millennials had the lowest rate of homeownership at that age group, with only 49.9% owning a home in 2021, compared 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, known for their high housing costs. In Toronto, 26.1% of millennials were living with a parent in 2021, while the figure was 19.3% in Vancouver.
Furthermore, the percentage of millennials living with a spouse, partner, or child was lower than in previous generations, with only 62.8% of millennials in that type of arrangement in 2021, compared to about three-quarters of baby boomers in 1991.
The rising cost of housing in Canada, outpacing income growth, has likely contributed to these trends. Lower-end home prices have surged by over 200% since 2024, while young dual-earner household incomes increased by just 76% during the same period.
Although there has been a slight decrease in house prices, particularly in some major cities, it has not been enough to facilitate entry into the housing market for first-time buyers. TD Economics predicts a marginal 0.3% decline in home prices across Canada this year.
Statistics Canada emphasized that factors beyond affordability have influenced these changing patterns, including delayed family formation, longer educational pursuits, and distinct cultural norms across demographic groups.
Additionally, the report highlighted disparities based on race, noting that 39.4% of racialized Canadian-born millennials were living with their parents, compared to only 14% of non-racialized and non-Indigenous Canadian-born millennials, suggesting cultural differences may play a role in housing dynamics.
