A recent study revealed that in 2021, millennials were twice as likely as baby boomers to reside with their parents during young adulthood, with housing affordability being only part of the reason. Statistics Canada’s report, based on data from three census cycles, compared the housing situations of millennials, Gen Xers, and baby boomers.
The analysis 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. Homeownership rates also differed among generations, with 49.9% of millennials owning their homes in 2021, compared to 56.2% of Gen Xers in 2006 and 55.9% of baby boomers in 1991.
The disparity was more noticeable in major cities like Toronto and Vancouver, known for high housing costs. In Toronto, 26.1% of millennials were living with a parent in 2021, while the figure was 19.3% in Vancouver.
Additionally, the proportion of millennials living with a spouse, partner, or child was lower compared to previous generations. While around three-quarters of baby boomers had such living arrangements in 1991, only 62.8% of millennials did in 2021.
The rising cost of housing in Canada, outpacing income growth, has likely influenced these trends. Lower-priced homes have surged by over 200% since 2024, while dual-earner household incomes have only risen by 76% in the same period, according to a recent analysis by CBC News.
Despite a slight decline in house prices, particularly in major cities, it has not yet eased entry for first-time buyers. TD Economics predicts a 0.3% drop in home prices across Canada this year.
Statistics Canada highlighted that factors beyond affordability, such as delayed family formation and extended educational pursuits, may also contribute to the observed patterns. Cultural differences among demographic groups were also noted as potential influences.
The report also indicated that fewer millennials are parents compared to past generations. Among married millennials with children, the homeownership rate was similar to that of baby boomers in 1991. Notably, a higher percentage of racialized Canadian-born millennials lived with their parents compared to non-racialized and non-Indigenous Canadian-born millennials, suggesting cultural nuances may play a role.