What Happened

New research from the University of Alberta indicates that Canada’s housing crisis is significantly eroding life satisfaction among young adults, with the economic stressors accounting for nearly half of their decline in life evaluations. Using data from the Gallup World Poll tracked between 2008 and 2025, the study reveals a widening happiness gap between Canadians aged 20 to 34 and those over 65. About one in five young Canadians reported shelter insecurity between 2023 and 2025, compared to roughly one in thirteen seniors. Since 2004, new-home prices at the lower end of the market have risen by an average of 265 per cent, while young dual-earner incomes grew just 76 per cent. The researchers interpret this evidence as indicating that the happiness crisis among young Canadians is largely an economic crisis driven by housing affordability. Published in February 2023, the report highlights that dissatisfaction with housing affordability has risen across all age groups, though young adults are disproportionately affected. RBC’s national aggregate affordability measure also indicates that the previous improvement in housing affordability is poised to taper off. More than 8 in 10 young Canadians faced at least one housing challenge, while just over 6 in 10 of those aged 36 and older faced similar issues. People experiencing these housing challenges recorded lower results on overall well-being indicators. The study underscores that young adults are disproportionately affected by dissatisfaction with housing affordability, with 51 per cent of young adults aged 20 to 35 having moving plans impacted by rising prices in 2024, compared to 25 per cent of older adults.

Why It Matters

The findings suggest that housing affordability is the biggest contributing factor to dissatisfaction for young Canadians, directly impacting their mental health and economic stability. The steep decline in life satisfaction scores for young adults, measured via the Cantril Ladder, indicates that the housing crisis is not just a financial issue but a broader social and psychological one. With economic stressors accounting for nearly half of the decline in life evaluations, the inability to secure affordable housing is a primary driver of reduced well-being. This trend highlights a growing inequality in life satisfaction between generations, as older Canadians with established housing assets are less affected by current market conditions. The tapering off of affordability improvements, as noted by RBC, suggests that this gap may widen further if housing supply does not keep pace with demand. The data implies that without intervention, the economic stressors associated with housing will continue to suppress life satisfaction among young adults, potentially affecting long-term economic participation and social cohesion.

Local Vancouver / Burnaby Context

In the Greater Vancouver and Burnaby area, the housing affordability crisis is particularly acute, with new-home prices and land values rising significantly faster than income growth. The disparity between home ownership costs and dual-earner income growth mirrors the national trend, where young adults face substantial barriers to entry. Burnaby and Vancouver have seen intense pressure on rental markets and low-end housing segments, contributing to the shelter insecurity reported in the study. Local brokerage experience indicates that moving plans for young professionals are frequently derailed by rising prices and limited inventory, aligning with the statistic that 51 per cent of young adults had moving plans impacted by rising prices in 2024. The local context is further complicated by zoning regulations and development costs, which can limit the supply of affordable new homes. While the study focuses on national data, the mechanisms driving dissatisfaction in Canada are amplified in major urban centers like Vancouver and Burnaby, where housing costs are among the highest in the country. The local market dynamics, including high land values and construction costs, contribute to the steep rise in lower-end new-home prices, making homeownership increasingly unattainable for young dual-earner households. This local reality underscores the national finding that housing affordability is a primary driver of economic stress and reduced life satisfaction for young Canadians.

Market Impact

The erosion of life satisfaction among young adults due to housing costs is likely to impact market liquidity and demand for entry-level housing. As moving plans are increasingly impacted by rising prices, potential buyers may delay purchases, leading to reduced transaction volumes in the lower-end market segment. This trend could affect new-home sales for developers targeting young dual-earner households, who have seen limited income growth relative to price increases. The disparity in shelter insecurity between young adults and seniors may also influence rental market dynamics, with higher demand for affordable rental units among younger demographics. Additionally, the economic stress associated with housing challenges may reduce consumer spending in other sectors, as young households allocate a larger portion of their income to housing costs. The tapering off of affordability improvements suggests that market conditions may remain challenging for young buyers in the near term, potentially leading to increased reliance on rental housing or delayed entry into the property market.

Builder / Developer Perspective

Builders and developers targeting the lower-end market may face reduced demand as young dual-earner incomes grow at a slower rate than housing prices. The 265 per cent increase in new-home prices since 2004, compared to a 76 per cent increase in dual-earner incomes, indicates a significant affordability gap that may limit the pool of potential buyers. Developers may need to adjust their product mix or pricing strategies to address the economic stressors faced by young adults. The tapering off of affordability improvements, as noted by RBC, suggests that market conditions may remain challenging, requiring careful financial planning and risk management. Additionally, the high level of housing challenges faced by young Canadians may impact pre-sale success rates and overall project feasibility. Builders should consider the broader economic implications of housing affordability, as reduced life satisfaction and economic stress can affect consumer confidence and purchasing behavior.

BurnabyHouse Insight

The University of Alberta study provides a stark economic reality check for the Greater Vancouver and Burnaby housing market: the gap between income growth and housing price appreciation is not just a statistic but a driver of reduced life satisfaction and economic stress. For young dual-earner households, the 76 per cent income growth since 2004 against a 265 per cent rise in lower-end new-home prices highlights a structural affordability crisis that is unlikely to resolve without significant policy intervention. In Burnaby and Vancouver, where land values and construction costs are high, this dynamic is particularly pronounced, leading to increased shelter insecurity and delayed homeownership among young adults. The tapering off of affordability improvements, as noted by RBC, suggests that the market may remain challenging for young buyers, with economic stressors continuing to suppress well-being. Local readers should recognize that the housing crisis is not just a financial issue but a broader social one, impacting mental health and economic participation. As the happiness gap between generations widens, the need for affordable housing solutions becomes increasingly urgent for maintaining social cohesion and economic stability in the region.