A deep dive into affordability for young Canadians from new Census data.
If you are young and wish to live alone, here’s what the housing crisis means to you
Whether you’re fresh out of college, relocating for your first job, trying to be independent for the first time, or simply looking for a private space to breathe, you’re facing a painful reality: in Canada, it’s nearly impossible for a normal young person to finding an affordable place to live alone, especially in big cities like Vancouver or Toronto.
Living alone is more common than ever.
According to the 2021 Census, one in seven Canadian adults lived alone, the highest it’s ever been. In particular, middle-aged solo dwellers (aged 35 to 44) has doubled over the past 40 years, reflecting that millennials are postponing (or forgoing) children. More and more young people are embracing solo living as an alternative living arrangement.
But for many younger adults who might still be trying to find their financial footing, the question isn’t just whether they want to live alone or not, it’s whether they can afford to do so. The odds are stacked against them. On average, people aged 25 to 34 earn about 25% less than those just a decade older than them (35 to 44). Yet they’re paying the same high rents. The result? The younger you are, the fewer resources you have to support yourself and live the way you want.
Living alone is becoming a luxury
Let’s do the math. The average asking rents for a one-bedroom apartment have hit $2,380 in Vancouver and $2,170 in Toronto. For a young person (aged 25 to 34) earning a median income in Vancouver — about $3,900 before tax per month, nearly 60% of that paycheque goes straight to rent, doubling the ideal 30% rent-to-income ratio. What’s left has to go toward the basics — $700 for groceries and dine-outs, $300 for phone, internet and utilities, and $100 for transportation. There’s really not much room for entertainment and leisure, let alone save. Does it get better if you’re willing to split a two-bedroom with a partner or roommate then? Yes, but not that much. Even when shared, median renter households are still spending nearly half of their pre-tax income on rent alone in these cities.
What the data tells us is clear: in today’s housing market, living alone has become a luxury that not everyone can afford. A new UBC study finds that the soaring rental prices have deterred young people from forming their own households and prompted them to stick with their families or moving in with roommates instead. In 2021, nearly half of all young adults living with their parents were aged 25 to 34, a significant rise from only one in three in 2001.
In other words, young adults are staying under their parents’ roofs much later into adulthood, not necessarily by choice, but simply because the cost of independence is too high. For those with families that have already been renting or owning more stable and spacious homes, that can be a buffer against the expensive rental market. But not everyone has that option, which suggests another question: is the housing crisis be widening the gap between those who can rely on support from their families, and those who can’t? That’s a question we can’t afford to ignore.
Housing built with young adults in mind
Unfortunately, giving up the dream of moving out and gaining financial independence at a young age has become one of the many sacrifices younger generations are making under the weight of the housing crisis. We need more affordable housing options built with young adults in mind — housing that reflects what they need and how much they earn in the cities where they’re want to build their futures.
