A recent report by Statistics Canada revealed that in 2021, millennials were twice as likely to reside with their parents compared to baby boomers in their young adult years. This trend was observed across three generations – millennials, Gen Xers, and baby boomers – by analyzing data from multiple census cycles.
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 living situation in 1991. Additionally, millennials had the lowest rate of homeownership at those ages, with only 49.9% owning their homes in 2021, compared to 56.2% of Gen Xers in 2006 and 55.9% of baby boomers in 1991.
Major urban centers, particularly Toronto and Vancouver, showcased a more pronounced version of this trend due to their soaring housing costs. In Toronto, 26.1% of millennials were living with a parent in 2021, while in Vancouver, the figure was 19.3%.
The data also revealed that fewer millennials were living with a spouse, partner, or child compared to previous generations. The report suggested that the escalating housing costs in Canada, outpacing income growth, have likely influenced these trends. While housing prices have started to decline in some cities, such as Toronto and Vancouver, the market remains challenging for first-time buyers. TD Economics predicts a slight decrease of 0.3% in home prices nationwide this year.
Statistics Canada emphasized that various factors beyond affordability contribute to these changing living patterns, including delayed family formation, extended educational pursuits, and cultural differences among demographic groups. The report highlighted that among married millennials with children, the homeownership rate was similar to that of baby boomers in 1991.
Moreover, the study pointed out disparities among racialized and non-racialized millennials born in Canada, indicating that cultural influences may play a role in living arrangements. 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%).
Overall, the report sheds light on the complex interplay of economic, social, and cultural factors impacting millennials’ living arrangements in Canada.
