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. While the escalating housing costs play a role, other factors contribute to this trend.
Statistics Canada examined data from three census cycles to compare housing trends among millennials, Gen Xers, and baby boomers. The analysis showed that 16.3% of millennials aged 25 to 39 were living with a parent in 2021, while only 8.2% of baby boomers did the same in 1991.
Moreover, millennials had the lowest homeownership rate among the three generations. In 2021, just under half of millennials (49.9%) owned their homes, 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, known for their high housing costs. In Toronto, 26.1% of millennials were living with a parent in 2021, with a similar situation in Vancouver where 19.3% of millennials were in the same living arrangement.
The share of millennials living with a partner or child was also lower compared to previous generations. While three in four baby boomers had such arrangements in 1991, only 62.8% of millennials did in 2021.
The report highlights that housing affordability in Canada has significantly outpaced wage growth. 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 decline in house prices, especially in major cities, it has not yet made homeownership accessible for first-time buyers. TD Economics predicts a 0.3% drop in home prices nationwide this year.
Statistics Canada suggests that factors beyond affordability contribute to these changing patterns. Delayed family formation, extended educational pursuits, and cultural differences across demographic groups may also play a role in millennials’ living arrangements.
The report also notes variations among millennials based on racial backgrounds. Racialized millennials born in Canada had a higher rate of living with parents (39.4%) compared to Canadian-born, non-racialized, and non-Indigenous millennials (14%), indicating potential cultural influences on housing choices.
