Canada’s escalating rents and a shortage of housing have not only created challenges for young adults seeking their own homes; they are also reshaping the fundamental structure of family living arrangements, new research suggests.
The increased cost of apartments and homes in cities like Toronto and Vancouver in recent years has forced many young adults to live with family or roommates to manage costs, according to a study from the University of British Columbia.
The research examined census data spanning from 1981 to 2021 across nine prominent metropolitan regions: Vancouver, Calgary, Edmonton, Winnipeg, Toronto, Hamilton, Ottawa, Montreal, and Quebec City.
The study focused on single-person households, couples, couples with children, and single parents with children. The researchers analyzed these trends in connection with housing accessibility, measured through turnover rents that have been adjusted for inflation.
Researchers discovered a strong relationship between rental prices and household formation. In urban areas where rental rates have dramatically increased, countless Canadians find themselves “stuck in place,” unable to transition into their own living spaces, the authors said.
Increasing rental prices in Canada have led to a growing trend of young adults sharing living spaces rather than establishing independent households. While this trend can be seen across different age groups, it is especially evident among those aged 25 to 29, the report said.
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The median rent in Toronto and Vancouver in 1981 accounted for 25 to 27 percent of the median income for young adults. This figure had climbed to 36 to 37 percent by 2021, leading to a rise in the number of people sharing housing costs, the study found.
In fact, when median rent rises by $1,000, there is a corresponding 23 percent reduction in the number of young adults who establish their own households.
More than two-thirds of 25- to 29-year-olds in Toronto and Vancouver lived independently in 1981, the authors said. As of 2021, this statistic had dipped to slightly more than one-quarter in Toronto and roughly one-third in Vancouver.
While the study was based on data up until 2021, the cost of housing in Canada’s largest cities has continued to rise.
The average Toronto apartment came with a monthly cost of $2,615 as of February, while rent in Vancouver averaged $2,870—its lowest rate since April 2022, according to Rentals.ca.
Rent averages $2,217 in Ottawa, $1,974 in Montreal, $1,916 in Calgary, and $1,531 in Edmonton.
Shared accommodation rents also decreased this year in Toronto, Vancouver, Calgary, Edmonton, and Montreal. Toronto saw the largest reduction, falling 8.2 percent to $1,176 per person. In Montreal, it fell by 8 percent to $870.
