Housing Affordability for Young Canadians: A Generation on Hold

Trends & Society · June 7, 2026 · 7 min read

For the first time in recent history, young Canadians are accessing homeownership less than their parents and grandparents did at the same age. From record prices to the bank of mom and dad, a portrait of a generation watching the real estate dream slip away.

Housing Affordability for Young Canadians: A Generation on Hold

A Historic Reversal

For decades, each new generation of Canadians was more likely to own a home than the previous one at the same age. That logic has now reversed.

According to a Statistics Canada study published in May 2026, 49.9% of millennials owned their home in 2021, down from 56.2% in 2006 and 55.9% in 1991. In other words, today's young adults access homeownership less than Generation X and baby boomers did when they were between 25 and 39.

This decline was confirmed across the eight major urban areas in the country, and was particularly pronounced in Halifax, Toronto, Winnipeg, and Vancouver.

The Boomerang Generation: Moving Back In

One of the most visible signs of this affordability crisis is the prolonged return — or continued presence — of young adults in their parents' homes.

In 2021, 16.3% of millennials were living with their parents, roughly double the rate observed among baby boomers in 1991 (8.2%). Among 25-to-29-year-olds, nearly one in three (31.1%) lived in the parental home in 2021, compared to 15.7% in 1991.

The phenomenon is most acute in the most expensive cities. In 2021, the proportion of millennials living with their parents was highest in Toronto (26.1%) and Vancouver (19.3%).

The Bank of Mom and Dad: A New Inequality Driver

For those who do manage to buy, family support has become decisive. A growing number of young buyers now rely on intergenerational wealth transfers — the so-called bank of mom and dad — to facilitate a property purchase.

This phenomenon is deepening a new social divide: access to homeownership depends less and less on merit or employment income, and more and more on parental wealth. Young people from homeowning families start with a considerable head start over those whose parents are renters.

The Root Causes

Several factors combine to explain why young Canadians are drifting further from the real estate dream:

Rising prices and down payments. Soaring prices mean a larger down payment is required to secure a mortgage, delaying purchase. Saving for a down payment now takes far longer than it once did.

Delayed family formation. 25-to-29-year-olds in 2021 were 31% less likely to be living as a couple or with children than in 1991. Yet this type of household historically had the highest homeownership rate.

Longer life trajectories. Extended post-secondary education, later labour market entry, and longer careers: the share of 25-to-64-year-olds with a post-secondary credential rose from 40% in 2000 to 62% in 2021. Adult milestones have simply been pushed back.

Rental market pressures. The rental market has also posed financial challenges for young tenants for several years, making it harder to save toward a purchase.

The Montreal Exception

Relatively good news for young Quebecers: Montreal remains more affordable than Canada's other major metros. But the advantage is eroding quickly. A McKinsey report commissioned by Centraide of Greater Montreal noted that housing access in Montreal remains comparatively affordable, but that the situation is deteriorating faster there than elsewhere.

Among 25-to-29-year-olds in Montreal, the share living with their parents rose from 17.1% in 1991 to 22.1% in 2006, then to roughly 29% in 2021. The boomerang generation has firmly taken root.

What Governments Are Doing

Facing this generational crisis, Ottawa has deployed several measures specifically targeting first-time buyers under the Canada Housing Plan:

Enhanced Home Buyers' Plan (HBP). Canadians can now withdraw up to $60,000 from their RRSP, tax-free, to buy a first home, with an additional three-year window to repay.

30-year amortization. Since August 1, 2024, first-time buyers of newly built properties can obtain a mortgage amortized over 30 years, reducing monthly payments.

Secondary suites. A new low-rate loan program allows homeowners to add a secondary unit to their home, boosting affordable supply.

The First Home Savings Account (FHSA), launched in 2023, complements these measures by allowing tax-sheltered saving toward a down payment.

A Resilient Generation Nonetheless

Despite these obstacles, the desire for homeownership remains strong. The majority of young Canadians still view homeownership as a good investment, and Generation Z along with younger millennials are prioritizing saving, building strong credit profiles, and cutting discretionary spending to get there.

The real estate dream is not dead among young Canadians. It is simply deferred, redefined, and more dependent than ever on family circumstances.

Key Takeaways

Housing affordability for young Canadians is at a turning point:

Millennials own homes at a lower rate than previous generations did at the same age — a historic reversal
Nearly one in three 25-to-29-year-olds lived with their parents in 2021
The bank of mom and dad is becoming a major inequality driver in accessing homeownership
Montreal remains more affordable, but is deteriorating faster than other metros
Federal measures (enhanced HBP, 30-year amortization, FHSA) directly target first-time buyers