Canada’s ongoing housing crisis is doing more than just stretching wallets—it’s fundamentally altering how people live, especially young adults. A groundbreaking study by the University of British Columbia reveals that escalating rent costs in cities like Toronto and Vancouver are making it increasingly difficult for Canadians to form independent households. The findings, published in The History of the Family, examine four decades of census data, uncovering a stark relationship between housing affordability and the way families choose—or are forced—to live.
Between 1981 and 2021, the study analyzed household formation across nine major metropolitan areas, including Toronto, Vancouver, Montreal, Calgary, Edmonton, Ottawa, Hamilton, Winnipeg, and Quebec City. It focused on “minimal household units”—such as singles, couples, and parents with children—and found that as rent rises, the number of people able to live independently sharply declines. In high-cost areas, young adults are more likely to live with parents or roommates, whereas cities with relatively affordable housing, like Quebec City and Montreal, have seen higher rates of household formation and sustained independence.
The most significant impact has been felt by Canadians aged 25 to 29. In 1981, nearly 70 percent of young adults in Toronto and Vancouver lived independently. By 2021, that figure had plummeted to just over a quarter in Toronto and a third in Vancouver. Meanwhile, in Quebec City, 75 percent of young adults still manage to live on their own, with Montreal close behind at 50 percent. The study found that for every $1,000 increase in median rent, the likelihood of a young adult forming their own household drops by 23 percent. Additionally, the cost of rent as a share of income in Toronto and Vancouver jumped from around 25 percent in 1981 to nearly 37 percent in 2021.
While culture and demographic factors do influence living arrangements, the study concludes that affordability is the most powerful predictor of how households form. The researchers argue that policymakers must go beyond traditional metrics that focus only on population growth and migration. Instead, housing policy should reflect the households Canadians want to form—not just the ones they can afford.
Rather than relying solely on rent subsidies or freezes, the researchers advocate for a structural approach: increase the housing supply, especially in expensive cities. This, they argue, will empower Canadians to make meaningful choices about their living situations and reduce the compromises many are currently forced to make. Without addressing supply, housing stress will continue to drive Canadians into living arrangements that don’t align with their aspirations.
