New research suggests Canada's housing crisis is eroding life satisfaction among young adults across the country, with one in five reporting shelter insecurity in recent years. The study, published by the University of Alberta, used the Canadian sample of the Gallup World Poll to track declining wellbeing among adults aged 20 to 34, alongside worsening perceptions of housing affordability, living standards, job climate, and food and shelter insecurity.
Happiness gap widens
The researchers interpret the evidence as indicating that the happiness crisis among young Canadians is, to a large degree, an economic crisis. The Gallup Poll, an annual survey representing over 95 per cent of the global adult population, uses the Cantril Ladder to measure life satisfaction. Respondents rate their lives on a scale from zero (worst possible) to ten (best possible). Scores for young Canadians between 2008 and 2025 show a steep decline, as well as a widening happiness gap between those aged 20 to 34 and those over 65.
Economic stressors key factor
The researchers noted that economic stressors accounted for nearly half of young adults' decline in life evaluations, with housing affordability standing out as the biggest contributing factor. While dissatisfaction with housing affordability has risen across all age groups, young adults are disproportionately affected. About one in five Canadians aged 20 to 34 reported shelter insecurity between 2023 and 2025, compared with roughly one in thirteen seniors.
Young Canadians' concerns about housing affordability are not unfounded. A report published in February this year found that, since 2004, new-home prices at the lower end of the market have risen by 265 per cent on average, while young dual-earner incomes grew just 76 per cent.
Statistics Canada data confirms strain
Data from Statistics Canada further illustrates the strain. In 2024, 51 per cent of young adults aged 20 to 35 had moving plans impacted by rising prices, compared to 25 per cent of older adults. More than 8 in 10 young Canadians faced at least one housing challenge, compared with just over 6 in 10 of those aged 36 and older. Similarly to the Gallup Poll data, people who reported experiencing one or more housing challenges recorded lower results on indicators for overall well-being.
Despite housing affordability recently improving for the eighth consecutive quarter, RBC's national aggregate affordability measure notes that this improvement is poised to taper off. We're likely approaching the end of the recuperation phase for housing affordability in Canada, the report said.
Broader decline in happiness
The University of Alberta research is not the only recent study documenting a decline in life satisfaction in Canada. The 2026 World Happiness Report saw Canada, once in the top five happiest countries, rank 25th, down from 18th the year before and extending a decade-long decline.
This article provides a comprehensive look at how the housing crisis is affecting the wellbeing of young Canadians, highlighting the urgent need for policy interventions to address affordability and shelter insecurity.
