Considering Vancouver and Montreal as case studies, this article demonstrates the increasing centralization of the young adult population since the early 1980s. Gentrification, which brings higher income earners to the inner city, is often explained as a class‐based process associated with post‐industrial, post‐Fordist, and, more recently, neo‐liberal restructuring. However, delays in child‐bearing, increasing educational attainment, and the growing amenity and housing component in inner cities have also sharpened the division of space by demographic variables such as age and household size—variables that relate to life‐cycle stage, consumption practices, and generational differences. This article contributes to the understanding of the factors delineating urban space by considering residential location patterns of two different generations of young adults in two metropolitan areas. The findings show that today's young adult residential ecology is increasingly defined by proximity to transit, high‐density housing, and walkability to urban amenities. Due to the higher‐priced housing market and land use planning policies emphasizing densification, the residential pattern is one of concentrated decentralization in Vancouver. In Montreal, centralization of young adults is mostly associated with changing household profiles. In both metropolitan areas, the inner city residential ecology is increasingly delineated by young adults.