Multi-Generational Housing Demand Surges in Edmonton Amid Affordability Crisis
Edmonton is witnessing a significant shift in housing dynamics as more families embrace multi-generational living arrangements. First-time homebuyers and downsizing parents are increasingly joining forces to purchase single-family detached homes, a trend driven primarily by escalating affordability challenges in the city's real estate market.
Affordability Drives Innovative Housing Solutions
According to Don Patterson, managing partner and broker at Re/Max Excellence in Edmonton, while parents have traditionally helped adult children with down payments, many are now considering more permanent co-living arrangements. "Affordability is a major driver as a multi-family home allows them to share housing costs," Patterson explains. This approach represents a compromise for first-time buyers who find themselves priced out of the traditional single-family home market.
The statistics underscore the growing challenge. In January, the benchmark price for a single-family detached home in Edmonton exceeded $508,000, marking a 0.5 percent increase from the previous year, according to data from the Realtors Association of Edmonton. Patterson notes this benchmark price, considered typical for the city, is becoming increasingly unattainable for young families seeking to establish roots in Edmonton.
National Trends and Government Support
Statistics Canada reveals that approximately one in five Canadian homes with multiple dwellers now qualifies as multi-generational. This national trend has prompted government intervention, with the federal government introducing a tax credit in 2022 to assist with renovation costs for creating multi-generational living spaces. These modifications often include separate basement suites or additions built above garages, making existing homes more suitable for extended family arrangements.
Changing Retirement Patterns Fuel Demand
Another significant factor driving this trend involves aging parents who are downsizing from their family homes. Rather than transitioning to condominiums, duplexes, or townhomes, many are using their home sale proceeds to help their children purchase larger single-family properties with separate living quarters. Typically, adult children and grandchildren occupy the main floors while grandparents reside in basement suites or other designated areas.
"The end result is lower costs for both parties," Patterson emphasizes. Beyond financial benefits, this arrangement offers practical advantages including closer proximity between grandparents and grandchildren, often facilitating childcare support and strengthening family bonds across generations.
Market Response and Challenges
Builders are responding to this growing demand. Edmonton-based Cantiro Homes and other construction companies are developing properties specifically designed for multi-generational families, featuring layouts that accommodate separate living spaces while maintaining family connectivity.
However, real estate professionals note challenges in meeting this evolving demand. Nathan Mol, a realtor with Liv Real Estate in Edmonton, observes increasing client interest in multi-generational homes but acknowledges limited availability. "The number of people in each generation of the family often impacts the housing type, location and size they are looking for," Mol explains, noting that accessibility considerations for aging parents further complicate the search for suitable properties.
As housing affordability continues to challenge Edmonton residents, multi-generational living arrangements represent both a practical solution and a cultural shift in how families approach homeownership in Canada's sixth-largest metropolitan area.
