Multigenerational Households in Canada

Understanding the Rise of Multigenerational Households in Canada

Multigenerational households—where three or more generations live under one roof—are becoming increasingly common in Canada. This trend is particularly evident in provinces like British Columbia and Ontario, driven by cultural norms, economic pressures, and evolving family needs. According to Manifold data, there are approximately 490,560 multigenerational households in Canada, with 247,640 in Ontario and 85,299 in British Columbia.

Factors Contributing to Multigenerational Living

Several key factors contribute to the rise of multigenerational households:

Cultural Influences: Many immigrant communities prioritize intergenerational living as part of their cultural traditions, fostering close family ties and support systems.
Economic Considerations: Rising costs, particularly in metropolitan areas, make shared living arrangements a more affordable option.
Caregiving Needs: Multigenerational households often facilitate caregiving for both elderly family members and young children, reducing reliance on external care services.
Other Socioeconomic Factors: Life events such as job loss, financial instability, or personal preference also play a role in the decision to live in a multigenerational setting.

Read the story of a Canadian family living in a multigenerational household.

Income and Transportation Trends

Multigenerational households often experience distinct financial and commuting patterns:

Income Levels: These households are less likely to have incomes exceeding $60,000, with a higher proportion earning below $50,000 annually.
Transportation Preferences: Over twice as likely to rely on public transit for commuting, they also tend to have longer commute times (30+ minutes).
Geographic Distribution: Predominantly located in high-cost housing markets such as British Columbia and Ontario, where affordability challenges are more pronounced.

Consumer Spending Behaviour

Households with multiple generations under one roof exhibit unique spending habits:

Grocery and Food Purchases: They spend less on individual food categories such as dairy, meat, and baked goods, but allocate a higher overall grocery budget, averaging over $250 per week.
Lifestyle and Entertainment: Increased spending on party supplies, costumes, and toys reflects their communal lifestyle and the presence of children within the household.

Vehicle Ownership and Leasing Trends

Car ownership patterns among multigenerational households indicate a preference for practicality and cost-efficiency:

Brand Preferences: Honda and Toyota are the most commonly chosen brands, valued for reliability and longevity.
Ownership and Leasing: More likely to purchase used vehicles or lease rather than buy new, with a growing interest in hybrid and electric models.
Lease Terms: Preference for shorter leasing terms (under 36 months) to maintain financial flexibility.

Financial Behaviour and Banking Trends

Multigenerational households also display unique financial habits:

Banking and Credit Preferences: Higher usage of credit unions and financing companies in addition to traditional banks.
Cryptocurrency Engagement: More likely to own and trade cryptocurrency, suggesting a willingness to explore alternative financial instruments.
Savings and Estate Planning: Less likely to have savings or investments exceeding $250,000 and less likely to have a will, indicating potential demand for financial advisory services.

Psychographic Insights

Beyond financial and spending behaviours, multigenerational households have distinct attitudes and values:

Brand Loyalty: More inclined to perceive premium-priced brands as worth the investment.
Marketing Influences: Highly responsive to free trials and product samples.
Health and Sustainability: More likely to view vegetarianism as a healthy lifestyle choice.
Financial Concerns: Frequently worry about financial security in retirement, yet identify as adventurous and outdoorsy.

Conclusion

Multigenerational households are an increasingly significant demographic in Canada, shaped by cultural traditions, economic pressures, and evolving family needs. Their distinct financial behaviours, spending habits, transportation preferences, and healthcare requirements present unique opportunities for businesses, policymakers, and service providers. By understanding their specific challenges and preferences, organizations can tailor their strategies to better serve these households—whether through targeted financial products, customized marketing approaches, or improved healthcare and social services. As multigenerational living continues to grow, leveraging data-driven insights will be essential for meeting their needs and ensuring they remain a well-supported segment of society.