Growing Trend of Cohabitation in Canada

From young adults returning home after completing their studies to elderly parents moving in with their adult children, an increasing number of Canadians are opting to live with family members or purchase property with friends as a joint venture.

While multi-generational living is not a new concept, it has become more prevalent in North America in recent years. Many Canadians are choosing this living arrangement to collectively raise young children, care for elderly family members, and share housing costs in an increasingly competitive market.

Advantages and Challenges

Living with family offers numerous financial and emotional benefits, but it can become chaotic if the home isn’t designed for multiple families. If you're considering cohabitation, here are some tips on transforming your home into a multi-generational living space.

Creating Separate Spaces

Privacy is crucial in a shared living arrangement. If space and budget allow, building a secondary unit on the property can provide an in-law suite or apartment for adult children. Alternatively, converting a basement into a separate apartment with its own kitchenette, bathroom, and living area can offer additional privacy within the same household.

If major renovations aren't feasible, consider adding privacy through interior soundproofing, room dividers, and separate entrances. Multiple entryways can streamline foot traffic and give occupants a greater sense of independence.

Before starting any major renovation or construction project, contact your municipality's building department to ensure you have the necessary permits and are aware of any additional requirements for separate entrances, addresses, utilities, etc.

Mindfully consider your layout

Multi-generational households may choose to include one or two bedrooms on the main level of the home in addition to the bedrooms upstairs. This is not only beneficial for elderly occupants who will find it easier to navigate one level, but can also provide some additional privacy by separating the bedrooms over two floors. If you live in a single-floor property, consider converting rooms on opposite sides of the home into bedrooms, if possible.

It’s also important to strike a balance between separation and togetherness. Open concept layouts in shared dining, living and kitchen areas offer a place for families to gather. Larger communal areas can not only accommodate more people, but also lend enough breathing room for wheelchairs, walkers and space for getting around furniture.

When living with many people, it’s important to maximize every square foot for multi-tasking too. Consider converting some of the underutilized spaces of your home – such as the attic, garage or den – into flexible spaces that can be adapted into areas for hobbies, a home office, a kids’ playroom, or extra storage.

Keep accessibility in mind

If your multi-generational household includes older family members, it’s crucial to think about their accessibility needs – today and in the future.

Layouts that include wider doorways and hallways, removing doors where possible and adding ramps or stairlifts, can be beneficial for those with mobility constraints. Consider the amount of space needed for mobility devices to comfortably turn circles in each room. Slip-resistant flooring like carpet, good lighting, grab handles and railings are also important to factor in when retrofitting your home for elderly occupants.

The Canada Mortgage and Housing Corporation (CMHC) offers online guides for designing accessible spaces in the home.

Take advantage of tax credits

If you’re renovating your home for the purposes of multi-generational living, then you may be entitled to a tax break.

As of 2023, the federal Multigenerational Home Renovation Tax Credit is available as a refundable credit towards the creation of a secondary unit that a ‘qualifying individual’ will live in, such as a parent, grandparent, sibling or spouse. The credit is applicable on the renovation of, or addition to, an eligible dwelling that a qualifying individual will reside in. Applicants can claim up to $50,000 in rebates during the taxation year in which the renovation period ends.