The Growing Reliance on Parental Housing Support
In the face of escalating post-secondary expenses, a striking 59 per cent of Canadian parents and guardians are planning to provide free room and board to their children during university or college studies. This trend, highlighted in Statistics Canada's 2025 Survey of Approaches to Educational Planning (SAEP), reflects a strategic response to the affordability crisis gripping higher education in Canada. Living at home or receiving housing subsidies from parents allows students to attend nearby colleges and universities without the burden of skyrocketing rents, preserving family budgets and enabling pursuit of degrees in fields like nursing, engineering, and business.
The SAEP, which surveyed over 40,000 children under 18 through their parents or guardians between February and May 2025, underscores a broader commitment to educational support. Nearly 71 per cent of parents are actively saving via registered education savings plans (RESPs) or other vehicles, up slightly from 69 per cent in 2020. Among those saving, 89 per cent utilize RESPs, with additional options like tax-free savings accounts (28 per cent) and mutual funds (14 per cent) gaining traction.
This parental involvement is crucial as post-secondary costs climb. Average undergraduate tuition for Canadian students reached $7,734 in 2025/2026, a 1.4 per cent increase, while international fees hit $41,746, up 2.5 per cent. However, housing often eclipses tuition as the largest expense, with off-campus rents in major cities like Toronto exceeding $2,000 monthly for shared accommodations.
Disparities in Savings and Support by Income and Education
Household income profoundly influences preparedness for post-secondary education. In the highest income quintile, 91 per cent of children have dedicated savings, compared to just 52 per cent in the lowest quintile. Parental education levels also play a role: 79 per cent of children whose parents hold university degrees have savings set aside, versus 44 per cent for those with parents possessing only a high school diploma or less, and 65 per cent for trades or college credentials.
- Highest income quintile: 91% with savings
- Lowest income quintile: 52% with savings
- Parents with university degree: 79% savings rate
- Trades/college parents: 65%
- High school or less: 44%
Beyond savings, 64 per cent of parents intend to contribute directly to tuition payments once studies begin, while 27 per cent plan to assist with student loan repayment. Alarmingly, 17 per cent anticipate needing to borrow themselves to fund their child's education, signaling strained family finances amid inflation and housing pressures.
Lower-income families cite day-to-day expenses (54 per cent) as the primary barrier to earlier saving, followed by a preference to pay costs as they arise (33 per cent) and debt repayment priorities (27 per cent). Half of non-savers (51 per cent) plan to start later, highlighting a patchwork approach to funding higher education.
Rising Tuition and Housing Costs Fuel the Shift
Tuition fees, though rising modestly, compound with living expenses to create formidable barriers. Provinces like New Brunswick, Saskatchewan, and Nova Scotia charge Canadian undergraduates nearing $10,000 annually, while graduate fees in Nova Scotia and British Columbia exceed that threshold. Ontario leads in international undergraduate tuition at $49,802.
Housing costs amplify the challenge. In Toronto, post-secondary students pay hundreds more monthly than the national renter average, with 66 per cent at Toronto Metropolitan University relying on parental help. Nationally, on-campus housing ranges from $800 to $1,800 per month, but off-campus options in urban centres often surpass $2,000, pushing 47 per cent of students to live at home—a 11-point rise since 2013.
| Expense Category | Average Annual Cost (CAD) |
|---|---|
| Undergraduate Tuition (Canadian) | $7,734 |
| Graduate Tuition (Canadian) | $7,978 |
| International Undergraduate | $41,746 |
| On-Campus Housing | $9,600 - $21,600 |
| Off-Campus Rent (Toronto example) | $24,000+ |
Forecasts predict a four-year university degree costing over $101,000 by 2025, factoring tuition, residence, and incidentals. With 88 per cent of parents reporting $12,880 higher household expenses in 2024, free housing emerges as a vital lifeline.
Ontario's OSAP Reforms: A Turning Point?
Recent changes to Ontario's Ontario Student Assistance Program (OSAP) intensify reliance on parental support. Starting fall 2026, OSAP aid shifts to a maximum 25 per cent grants and minimum 75 per cent loans, ending the previous grant-heavy model. The seven-year tuition freeze lifts, permitting up to 2 per cent annual increases.
Premier Doug Ford cited thousands of student calls but affirmed the reforms, allowing institutions greater financial flexibility amid federal international student caps. Critics warn of surging debt, potentially deterring low-income applicants and pressuring universities to bolster commuter-friendly programs.
Explore career advice for navigating post-graduation debt in competitive fields like higher ed jobs.
Student Living Patterns: The Commuter Boom
Nationwide, 47 per cent of post-secondary students live with parents, up from 36 per cent a decade ago, driven by housing unaffordability. In urban hubs like Toronto and Vancouver, this figure exceeds 60 per cent, easing residence shortages but straining public transit and family dynamics.
Universities adapt with hybrid learning, expanded online offerings, and commuter supports. Retention benefits from reduced financial stress, though socialization challenges persist. A TD survey found 22 per cent of students most worried about housing, 26 per cent about tuition.
Implications for Canadian Universities and Colleges
The surge in parental housing support reshapes higher education landscapes. Institutions near population centres like the University of Toronto, UBC, and McGill see stabilized local enrollment, mitigating international cap impacts. However, rural colleges face commuting barriers, prompting advocacy for expanded bursaries.
- Increased commuter students reduce on-campus housing demand by 20-30% in some provinces.
- Boosted retention rates: financially secure students 15% more likely to graduate on time.
- Shift to flexible programs: evening classes, micro-credentials suit working students.
Colleges like Fanshawe and Seneca report parental contributions as key to enrollment growth in high-demand programs. Explore opportunities in Canadian higher ed.
Expert Insights and Parental Strategies
Sumaiya Bhula of TD Bank emphasizes early budgeting: "No amount is too small." She advocates family financial plans syncing parental savings with student part-time work. RESPs offer government matching grants, amplifying contributions.
Universities promote StatsCan SAEP data for planning, while career centres link to higher ed jobs post-graduation.
Challenges and Solutions Ahead
Despite support, gaps remain: low-income families lag, exacerbating equity issues. Solutions include expanded need-based grants, affordable campus housing initiatives, and policy reforms like OSAP tweaks.
Federal incentives for RESPs and provincial housing subsidies could bridge divides. Universities invest in mental health for commuter students, fostering community via clubs and online forums.
Future Outlook for Post-Secondary Affordability
As costs rise, parental free housing solidifies as a cornerstone, potentially increasing access for middle-income families. Yet, systemic reforms—targeted aid, tuition moderation, housing builds—are essential for sustainability. With 64 per cent parental tuition help planned, collaboration between families, governments, and institutions will define Canada's higher ed success. Rate your professors and find higher ed jobs to ease transitions. Career advice awaits graduates.
