New research indicates that Canada’s housing crisis is significantly impacting life satisfaction among young adults, with one in five experiencing shelter insecurity recently. A study from the University of Alberta analyzed data from the Canadian Gallup World Poll, revealing a steep decline in well-being among individuals aged 20 to 34, primarily due to economic factors. Between 2008 and 2025, the happiness gap widened between younger Canadians and seniors, with economic stressors, particularly housing affordability, contributing to nearly half of the decline in life evaluations. The study found that dissatisfaction with housing affordability is most acute among young adults, with 51% of those aged 20 to 35 affected by rising costs. In comparison, only 25% of older adults reported similar concerns. Despite a recent trend of improving housing affordability, experts warn that this recovery might soon plateau.
Why It Matters
Housing affordability has deteriorated significantly across Canada over the past two decades, with new-home prices rising by an average of 265% since 2004, while dual-income young adults saw only a 76% increase in earnings. Statistics Canada highlights that over 80% of young Canadians face at least one housing challenge, compared to just over 60% for those aged 36 and older. The 2026 World Happiness Report reflects a broader decline in life satisfaction, with Canada dropping from the top five to 25th place in global happiness rankings. This sustained decline underscores the pressing need for policy changes to address housing affordability and improve living conditions for younger Canadians.
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