Living at home is increasingly common and can translate into big savings that can be put towards a down payment for a home.
Living with your parents as a young adult used to be a subject of shame and ridicule. But amid sky-high housing costs, rooming with your Mom and Dad is becoming a common bit of financial advice for Canadians in their mid- to late 20s.
You’ll find the same financial wisdom on TikTok. In Vaughan, Ont., 27-year-old Cassandra Melo has no qualms about revealing to her 125,000 followers that she’s living at home. Even splitting the rent with housemates is increasingly expensive. The average monthly rent for a bedroom in a shared home was just under $1,300 a month in Toronto and almost $1,400 in Vancouver, according to data from Rentals.ca and roommate search site Roomies.ca. Even in less costly markets such as Victoria, Hamilton, Kitchener, Ottawa or Halifax, young Canadians are facing rents of about $1,000 for a bedroom.
In several large and medium-sized cities examined by The Globe and Mail, that would allow that young Canadian to save about $100,000 by age 30, assuming rents rise 3 per cent a year. In Toronto and Vancouver, where rents are even higher, those savings would amount to almost $140,000 and $150,000, respectively.
But the decision to keep sharing living quarters with your parents can’t be just about numbers, Mr. Sithamparapillai cautioned. Even if parents can afford to subsidize their kids with free lodging, there are lifestyle and mental-health considerations to take into account. To avoid tension, Mr. Sithamparapillai suggests negotiating ground rules of co-living up front. How much are the kids expected to pitch in and save monthly to enjoy the privilege of living at home? Can parents withhold judgment on other spending as long as their kids pay their share and meet those savings goals?
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