A recent study reveals that in 2021, Millennials were twice as likely to reside with their parents compared to Baby Boomers during their young adult years, indicating a shift in housing dynamics among different generations. The research, conducted by Statistics Canada, examined data from three census cycles to analyze 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 in 1991. Homeownership rates also varied significantly across generations, with just under half of Millennials (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 trend was particularly noticeable 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 stood at 19.3% in Vancouver.
Furthermore, the proportion of Millennials living with a spouse, partner, or child was lower than in previous generations. Only 62.8% of Millennials had such living arrangements in 2021, compared to about three in four Baby Boomers in 1991.
The rising cost of housing in Canada, outpacing wage growth over time, has likely contributed to these shifts. While house prices have started to decline, particularly in major cities, the market remains challenging for first-time buyers. TD Economics predicts a slight decrease of 0.3% in home prices across Canada this year.
Notably, Statistics Canada emphasizes that factors beyond affordability, such as delayed family formation and extended educational pursuits, have influenced these changes. Cultural differences among demographic groups also play a role in housing patterns, as highlighted in the report.
The study also found variations in living arrangements among different demographic groups, with a higher percentage of racialized Canadian-born Millennials living with their parents compared to non-racialized and non-Indigenous counterparts. These findings suggest that cultural factors may impact housing choices among Millennials.
