Rising Trend of Living with Parents#
A recent study by Statistics Canada has found that the number of young adults aged 25 to 39 living with their parents has reached a record high. In 2021, 16.3% of millennials were in this situation, a figure that has doubled since 1991 when baby boomers were the same age.
Urban Centers and Housing Costs#
This trend is particularly noticeable in Canada's most expensive cities. For instance, in Toronto, 26.1% of millennials live at home, while in Vancouver, the figure is 19.3%. The rising real estate prices in these urban areas have outpaced local wages, making it difficult for young adults to afford their own homes.
Delayed Milestones and Homeownership#
The study indicates that the shift towards living with parents is not solely due to high housing costs. Changes in life milestones, such as spending more time in post-secondary education and delaying family formation, are also significant factors. In 2021, only 49.9% of millennials owned homes, compared to 56.2% of Generation X in 2006. This decline is especially evident in cities like Halifax, Winnipeg, Toronto, and Vancouver.
Challenges in the Rental Market#
Financial difficulties in the rental market have made it harder for young adults to save for down payments, further prolonging their stay at home. The study notes that family formation remains a key driver of housing demand, with parents in families with children more likely to own homes than those in other living situations.