More young adults living with parents now than in past 20 years
51 per cent of Generation Ys between the ages of 20 and 29 lived with their parents last year, according to the latest Statistics Canada data.
That’s compared with just 31 per cent of Generation Xers and 28 per cent of late boomers who lived at home during that same age period.
And while it may be easy to view them all as permanent 'basement dwellers', Generation Y is just more financially savvy than past generations, says CIBC economist Benjamin Tal.
The gang in this cohort simply know when they've got a good thing going.
The comparative lifestyle figures, including those on delaying marriage and children, simply reflect how thoughtful Generation Y members actually are, Tal says. Most, who he describes as "frighteningly calculating" are just biding their time until they’re financially secure enough to support those spouses and children.
Barbara Mitchell, author of The Boomerang Age: Transitions to Adulthood in Families agrees.
A lot of young people could likely afford to live on their own, but not in the manner they're accustomed to, she maintains. Their numbers are also being swelled by the increasing levels of student debt they've accumulated by the time they finish their studies.
Despite this, both parties are generally happy with this extended living arrangement even though it may increase the frequency of arguments between parents and children over subjects such as money, chores and responsibilities, she admits.
Still stuck with a mortgage and a house full of 20-somethings? How are things working out?
By Gordon Powers, MSN Money
Posted by: Al | Sep 13, 2021 2:23:29 PM
Being a Generation Y member who is turning 30 in December, I agree with this article. About half my friends or family members of this generation do in fact live with their parents still. I bought a home at 27 during the height of the recession. I think if people within my generation went back to old school attitiudes on a financial standpoint would be a whole lot better in the long run. No need to buy the latest iPhone or go out every Friday/Sat/Sunday. Invest your money whey the time is right.
"Got a good thing going" is part of the problem. Too many people I know state it all the time. The parents are the second part. Some of my fellow members will probably tell me off because of the ridiiculous increase in living costs vs salary, but if you scarifice for the first few young years - it will be much easier 5, 10 or 25 years from now.
Posted by: Dave | Sep 13, 2021 3:56:58 PM
My daughter is still living at home at 23 and there is no end in sight. I would rather have her at home than pay some ridiculous rent just to live 10 or 20 km away. What's the sense in that? I just wish I had been able to do the same but I lived more than 4 hours from my parents when I was that age.
Posted by: Trixie | Sep 13, 2021 4:16:07 PM
It's nice to hear a "30 something" seem so wise at such a young age, Al.
I'm in my mid-40's, but 30 seems a world a way to me now. (I also have the "old school" attitude about my finances.)
Anyway, I agree with the article. I see it in relatives. Noone wants to lower their standards, so they stay at home. I didn't do that. I left in my 20's. Was it the wisest thing to do? Maybe not. However, from the day I left, I've always been proud that I made it on my own, despite living a meager existence for years.
No, I didn't go out alot and saved my pennies for a rainy day. I still save today, 20 years later.
The penny pile is piling up a bit, which is nice.
Posted by: Bill | Sep 13, 2021 8:22:36 PM
I moved out when I was 18. I went to university, bought my own house. It was damn hard, but it was worth it. I would never consider burdening my parents. I had to make some major sacrifices, but if that what it takes, then so be it. My brother (and his wife) on the other hand lived with my parents until they were 30. My parents had to buy them their house to get them out!!!! There is no justification for that whatsoever.
Posted by: Shannyanny | Sep 14, 2021 2:23:54 AM
My mother's mantra was 'You starting talking to your kids about moving out the day they're born.' I don't remember actually hearing her say those exact words until I was in my 20's and contemplating a future which would eventually include kids, but she raised my siblings and I to aim for independence. My rebellious brother moved out at 17 when he knew he could no longer tolerate the limitations of living under my parent's roof - but their relationship never suffered. I took longer, leaving at 18 to go to university, returning home for summers and making a final break in my last year of school and going to Paris for a year. (I never thought I'd live in a small town again after Europe but am back in my home town after 25 years away.) Even my mentally challenged younger sister eventually left home at 23 for semi-independent living, finally giving my parents the empty nest they'd looked forward to. My teenage sons hear their nana's mantra often. I think it's going to be much harder for their generation to find their independence but I refuse to make it easy for them to stay. I'm already planning to move into smaller digs when my mortgage comes due in less than 5 years and my youngest will be 19.
Posted by: Debbie | Sep 14, 2021 2:27:09 AM
I had to move out at the age of 16. Not only did I put myself through high school and college, but in my mid-20's I was able to buy a house instead of renting. From the ages of 16-19, I frequently ate no-name Kraft Dinner, usually without milk or margarine. But now at 34 years old, I don't have the "I need is all now" attitude. My husband and I have paid down more than 50% of our mortgage, our vehicles are paid for (not new, but who cares) and we don't have any credit card debt.
Working hard and living lean teaches people to live without, but also to appreciate what they have and what they have had to work for.
Posted by: Steve | Sep 14, 2021 5:35:07 AM
I moved out and got married when I was 19. Paid my own way, went to university & post grad & paid my wifes way too. Was this all because I was just so awesome or because it was possible for me to get a good paying job straight out of highschool, have reasonable rent (1 weeks pay covered housing expenses) and paid a reasonable amount for gasoline and taxes.
I could stand here and shout how awesome I am and how lazy young people are today or I could recognise that the environment I graduated into was different than the environment many people are graduating into.
I will be shocked if my children are able to get a good paying full time job with benefits and a part-time job that works around their full time schedule like I did when they graduate. Luckily if they don't I have my moral high-horse already saddled up and ready to go.
Posted by: peacecj | Sep 14, 2021 9:16:42 AM
Lets cut the BS out. The fact is plain and simple. The younger generation simply cannot get their act together. Having said that there are a few factors that drive this attitude. Firstly, due to the opportunities out there, most teenagers feel it is the 'in thing' to try them all, with the result, they run up big time on their credit cards. Secondly, this puts their studies and achievements to the second rung, and so they take longer to complete them. Most do not complete them at all or become too old to have any motivation to complete their studies. Thirdly, with the costs involved in education, they have no choice but to stay at home and get a job, while paying up for their credit card debts. Finally, when all is said and done, and if they do find some one "suitable" they settle down. We are talking early thirties, if not later. This is the present culture and this is the way it is going. My guess is as good as any one elses, this is the modern culture and it is their life. WASTE IN HASTE AND REPENT AT LEISURE!!!
Posted by: Mike | Sep 14, 2021 9:57:35 AM
Lets be a bit more careful before caricaturing an entire generation of people peacej...if the generation Y'ers wanted to, they could talk about the greedy disgusting baby boomers who came out of school with the wind at their backs, yet still didn't manage to create any financial stability for themselves or their families and are hanging onto all of the jobs as a result, delaying retirement, ducking taxes throughout their careers as much as possible to leave the debt for the next generation to take care of.
Think about this question first...how many of you self satisfied baby boomers think you could wipe your resume clean, empty your net worth, pretend you are 25 and then go out and buy a $600,000 basic single family home, support a wife and start having kids?
I am a fully independent 31 year old, and I have been since I was roughly 14...we are both employed in Quebec with Master's degrees in our field. We have a small one bedroom condo and used our savings to rent another...we have a net worth that is slightly north of the avg Canadian househould, yet we still can't afford to buy a starter home (in a way that we would be comfortable with it). Eventually it will be worth it, but it will have been a much harder run than the baby boomers had! Let your kids stay at home and save money (as long as they are saving)...you owe it to them.
Posted by: Trixie | Sep 14, 2021 10:43:02 AM
Hi Mike. Hold on a minute. I'm on the cusp of the "boomer" generation. I agree they have spent alot. However, they have worked really hard for everything they have. You mention "ducking taxes." I don't understand that statement. I live in Ontario and I wish there was a way to "duck" taxes. Taxes don't go by generation. They go by who's in political power, which brings the issue of gov't into it. Yes, family/taxes/gov't are intertwined.
I do agree with you to let your kids stay at home. Parents brought them into the world, so why not? Mine aren't at that stage yet, but I"m hoping they want to stay at home because I love them and will miss them when they go.
Peacecj has a good point too though. The majority of the younger generation "simply can't get their act together." That is true. I watch it in my friends' kids. Now, who holds the blame? I say the parents. No, not the gov't. The parents brought them into this world and should have full responsibility for them until they are adults. Once parents raised them correctly, from 19 on, there should be no real problems. Now, I've raised another issue.
Posted by: Western Guy | Sep 14, 2021 10:47:04 AM
I moved out at 18. As above I went to University. I worked hard and have been rewarded. My wife's story is similar but she moved out at 21. Now we are both 29 and have a nice home, paid for vehicles and a nice holiday place in the mountains. We get to travel and do the things we like to when we want to. Lastly already our retirement plans are several times where we thought we would be at this age.
It really is all about your lifestyle choices. If you choose to get an education and live frugally for a couple of years you can get a huge jump on the world. Neither of us is special and while well paying our jobs are otherwise unremarkable. We haven't inherited or anything else but we both understand budgetting and financial control.
One of the best things I learned was how to budget when I moved out. I had X dollars and they had to last until Y day. If I wanted something bigger I would have to plan for it over Z time. Now my balance sheet has become more important as cashflow concerns have been finally beaten. These basic skills only come from living on your own and they will be valuable for my entire life.
Recently my youngest sister-in-law moved out. It was humerous when she told me "did you know meat is expensive?" At 24 it had never occured to her what it cost to eat good meals. She just assumed it happened and thought nothing more of it. It was a bad disconnect but it is being fixed now.
Posted by: Mike | Sep 14, 2021 10:53:04 AM
What I meant by ducking taxes...I am referring to continously applying pressure to reform taxes in a manner that empties the governments coffers. If you look at the real taxation rate that occurred per individual between 1940-1970 and then compare that to after the boomer's entered the workforce from 1970-today the taxation rate has dropped to an astonishing degree.
I'm not blaming the boomers entirely for this one (to be sure there was a pronounced shift in the philosophy of the role of public and private enterprise), but they entered a new world in the workforce in 1970, rang up the bill and ducked out of the restaurant after gorging their faces.
I am also being a bit overdramatic and the entire issue is a bit more complex than I am insinuating, however...I was just making a point to peacecj that you can oversimplify the matter in one direction...if he wants to play that game, then I can just as easily play it in the other direction.
Posted by: Gen Xer | Sep 14, 2021 11:03:13 AM
I am a gen xer. I just turned 30. I own my own home. I moved out of my parents' house when I was 17 (going to University). I was lucky enough to be born with reasonably "smart genes" (we forget that a big chunk of the population cannot get through a University/College program with any degree of success). My parents offered to help where they could, but it was ultimately me who put me through school. I think it is necessary for a parent to raise their child to be independent when the time comes. I didn't think I had an issue with kids living at home until they finish post-secondary, but my partner proved me wrong. He lived at home with his parents until he was 25 (and I dragged him out of there) and he is just now starting to develop the skills to be on his own. . . at 30. The skills he should have started learning when he was in his late teens. I think it is great for parents to want to help, but IMO, letting your children live at home like they are still children, hinders more than it helps.
Posted by: Mike | Sep 14, 2021 11:14:26 AM
I feel I should also qualify my statement...I said let your kids live at home (as long as they are saving)...that doesn't mean-cook their meals, do their laundry, clean up after them, buy their groceries. I agree this definitely doesn't help. They should be at home saving money like crazy in order to be able to break into this world with a bit of a leg up.
Posted by: Opinion | Sep 14, 2021 11:18:30 AM
I moved out when I was 19. I went University, paying my own way. It was hard because I also had to work parttime to be able to eat and pay rent as well. I am still proud of myself for being able to take charge of my life and being able to make my own decisions. My parents taught me independence and that it is great to be able to come home for Sunday dinner but to be able to go home to my own bed! Should I ever have children, I will also encourage them to leave the comfort of home at an early age to 'grow up', stop whining and take charge of their lives!
Posted by: Trixie | Sep 14, 2021 11:26:34 AM
I agree we are all to blame somewhat. Noone is perfect.
Second point, if I understand you right, you don't like the shift in philosophy from public to private? Also, you mention that taxation actually dropped. That is a statement that has me floored. In my opinion, from what I've seen from my teens to mid-40's, taxation has more than doubled. Maybe it's different in Quebec.
Anyway, I believe the best point I've read in this blog has to do with budgeting.
No matter what you make, don't spend more than you make.
Posted by: Mike | Sep 14, 2021 11:36:02 AM
No, I'm not saying that I didn't like the shift from public to private...I am just using that as a way to explain part of th real reason why taxation rates dropped so much post 1970. (A shift away from Keynesian economics towards a more right wing approach as a response to stagflation).
If you are in your 40's then you have likely only been working since the late 80's. I was referring to the period between 1940 and 1970 where the upper tax brackets had been as high as 90% and western governments were stable while the developing nations were the one risking default. I'm not crying out for a return to the good ole days, that would cripple us now...the playing field is completely different now. But the point remains...when the boomers entered the workforce, the market of day-day life was still reacting to higher net payments on their paycheques (they could buy a house for $30,000 while their household income would be $30,000 and have it paid in full after five years). I know many people that bought even in the early 80's in Toronto for $70,000 and are now living in $800,000 homes and tooting their own horns for their own financial responsibility, when what they really had was the good fortune to be entering the workforce at the right time.
Posted by: Alice | Sep 14, 2021 11:54:07 AM
Sadly, I am one of the ones living at home at 22. My mother (now in her fifties) had a similar experience, returning home several times while still working until she met my father and moved out with him. In the area I'm in it's very difficult to find a job because so many are looking, I work part time 1/2 hour away and drive my parents car (which I pay gas and insurance for, plus any other thing needed for it if I have enough for it), because the bus doesn't run late enough and I have to work at night. I also have a student loan to pay off, and usually that takes up everything I earn. I'm actively looking for another job though I frequently hear of others applying for the same positions and getting the same result: nothing. I've never been in a relationship, and the friends I have who have managed to move out were either lucky enough to get a career out of college or have a partner who also works. I know how much it costs to live on my own, as I stayed in an apartment for a year to complete college, living as cheaply as I could with only a cell phone that I used for everything including internet to help with studying (I have an old, cheap, unlimited plan), and unable to land any work had to depend some on my parents and move home afterward. I also have an older sister who lives at home who is legally blind. My parents accepted that she might live at home for awhile because she lives on disability and would rather her not be on her own.
Posted by: Rachel11 | Sep 14, 2021 12:36:00 PM
Many of my friends who live at home (I'm 32) are only doing so to allow their parents to live independently in their "family home". Their parents are in their 70's and due to financial or health reasons are unable to live 'on their own' and rely on having their adult children to do heavy home maintenance, grocery shop, take them to doctors appointments and contribute to the finances of running the home. In many areas of the world (where many of my friends are from), this is considered completely normal and they see caring for their parents as part of the cycle of life as their parents cared for them. Many of these inter-generational homes also have the very very elderly grandparents living with them and the adult grandchildren can help keep them safe, well cared for and out of hospital or a nursing home. I find it interesting that many commentators believe that it is young people behaving irresponsibly by not "being out on their own" but in fact moving home may be the largest and most complex commitment a young person can make.
Posted by: Michael O'Keeffe | Sep 14, 2021 1:19:35 PM
Three of my sons still live in the house with me and for good reason. They know what happened to my 4th son. He has a one room apartment which costs him 800 bucks a month and with food and all the other costs he is flat broke all the time. In this house the only person who is up to his armpits in debt is me. I also do the shopping, cooking, cleaning and driving. Everyone else in the house has money in the bank and no thoughts of buying vehicles or living on their own. These kids are not stupid.