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, with housing affordability only partially responsible for this trend. The report, released by Statistics Canada and based on data from three census cycles, examined shifting housing trends among millennials, Gen Xers, and baby boomers.
According to StatsCan, 16.3% of millennials aged 25 to 39 were living with a parent in 2021, whereas only 8.2% of baby boomers were in a similar living situation at that age in 1991. Homeownership rates were also lower among millennials, with just under half (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 housing dynamic was particularly pronounced in major cities like Toronto and Vancouver, where housing costs are significantly high. In Toronto, 26.1% of millennials were living with a parent in 2021, while the figure stood at 19.3% for Vancouver.
Furthermore, millennials were less likely to live with a spouse, partner, or child compared to previous generations, with only 62.8% opting for such arrangements in 2021. The rising cost of housing relative to income levels over time has been a key contributing factor. While housing prices have shown a slight decline recently, especially in major urban centers, it has not yet been sufficient to facilitate entry into the housing market for first-time buyers.
Statistics Canada emphasized that factors beyond affordability, such as delayed family formation and extended educational pursuits, have influenced these changing living patterns. Additionally, distinctive cultural differences among various demographic groups have played a role, as highlighted in the report.
Among married millennials with children, the rate of homeownership was similar to that of baby boomers in 1991. The report also pointed out variations in living arrangements among racialized and non-racialized millennials born in Canada, suggesting cultural influences as a potential factor in housing trends.