High Rent Forces Young Canadians to Delay Starting Families, Study Reveals
Toronto, July 4, 2024
A recent study by Abacus Data and the Canadian Real Estate Association (CREA) reveals that the ongoing housing crisis in Canada is significantly impacting young Canadians’ decisions to start families. According to the study, 55% of young Canadians cited the housing crisis as a primary factor for delaying having children.
Anna Smith, a 27-year-old graduate student at the University of Toronto, exemplifies this trend. Living in a 500-square-foot apartment in Toronto with her partner for $1,550 per month, Smith has postponed starting a family for two years due to the lack of affordable housing. “We feel so stuck, and it’s disheartening to be struggling to achieve these life goalposts,” she said.
The rental market in Canada is experiencing unprecedented challenges, with vacancy rates at a historic low and rent prices soaring. A CBC News analysis found that less than 1% of rental units are both vacant and affordable for the majority of renters. For families seeking larger accommodations, the situation is even more dire. Only 14,000 units with two bedrooms or more were both vacant and affordable, representing just 0.5% of such rentals on the market.
Zach Robichaud, a 37-year-old resident of Kitchener, Ontario, and his wife have also faced tough decisions due to high rent. Despite both having full-time jobs, most of their income goes to their $2,000-a-month rent, forcing them to reconsider their plans for a larger family. “It’s really kind of sad that [our daughter] won’t have that same sort of support system,” Robichaud lamented.
Statistics Canada reported that the total fertility rate in Canada dropped to its lowest point in over a century, at 1.33 children per woman in 2022. Financial constraints and housing affordability are major factors influencing this decline. In 2022, 38% of young adults aged 20 to 29 did not believe they could afford to have a child in the next three years.
Karen Lawson, a professor at the University of Saskatchewan, noted that the decision to have children has become more complex. “Financial costs are higher, social supports are lower, and parenting itself has become much more intensive and consuming,” she explained.
Smith, who is finishing her PhD in medicine, and her partner have adjusted their expectations numerous times. “We used to dream of owning our own home in the city, having two kids and a pet,” she said. “Everything we hoped for just keeps moving further and further out of our grasp.”
The study underscores the need for increased affordable housing to support young Canadians in achieving their life goals, including starting families. Without significant changes, many like Smith and Robichaud will continue to find their dreams delayed by the housing crisis.