Canadian millennials twice as likely to live with parents, StatCan study finds

Investing.com -- The share of young adults remaining in the family home has climbed to unprecedented levels, signaling a structural transformation of the Canadian household. A new Statistics Canada study reveals that 16.3% of millennials aged 25 to 39 lived with their parents in 2021, a figure that has doubled since baby boomers were the same age in 1991.

This trend is most visible in the country’s most expensive urban centers where real estate prices have decoupled from local wages. In Toronto, 26.1% of millennials remain at home, while Vancouver sees 19.3% of the same demographic living with at least one parent.

The report highlights a steady erosion of independent living over recent decades. While the shift is most acute in high-cost cities, researchers indicate that the phenomenon is not driven solely by the lack of affordable housing options.

Changes in life milestones, including extended periods spent in post-secondary education, have played a central role in delaying the transition to adulthood. Modern Canadians are also postponing family formation, a traditional catalyst for moving out and entering the property market.

Homeownership rates for millennials sat at 49.9% in 2021, trailing significantly behind the 56.2% recorded for Gen-Xers in 2006. This decline is particularly evident in the ownership of single-detached houses, which were far more accessible to previous generations at the same age.

The study emphasizes that the decrease in ownership is most pronounced in cities like Halifax, Winnipeg, Toronto, and Vancouver. Financial challenges in the rental market have further complicated the ability of young adults to save for the down payments required to exit their parents’ homes.

Statistical analysis suggests that family formation remains the primary driver of housing demand among young adults. Those who are parents in families with children are still more likely to be homeowners than individuals in any other living arrangement.

You May Also Be Interested In

• How real is the crypto rebound? This analyst answers
• Trump threatens 50% tariffs on all cars and trucks from Canada amid trade fight
• Analyst calls MU, SNDK pre-market drop on CXMT Apple report an overreaction