Canadians’ household net worth rises, boosted by equity and housing markets.
Despite the current economic challenges, Canadian households were wealthier in the first quarter, seeing their net worth rising by a total of $548.2 billion, or +3.3%, to $16.9 trillion.
That was due in large part to a 10.2% rise in equity markets and a 5.8% rise in the S&P/TSX Composite Index specifically, according to recent data from Statistics Canada.
Canadians also saw their wealth boosted by a collective $213-billion rise in residential real estate, marking the first quarterly decline after two consecutive declines. StatCan noted that household wealth isn’t distributed equally, with over 90% of net worth being held by homeowners.
Statistics Canada
The household savings rate was also up 6.9% in the quarter, the highest rate since the first quarter of 2022.
“Over the last four quarters, households added $113.7 billion in deposits compared with $161.3 billion in the four quarters prior to that,” StatCan said. “Households have responded to interest rate increases by adjusting their preferences towards fixed-term deposits that earn higher interest.”
Canadian household net worth, valued at approximately CAD 17 trillion, is significantly high, largely due to its substantial real estate market.
Canada Compared to Other Countries
To put this into perspective with other nations, especially among developed economies, there’s quite a range:
United States
The household net worth is remarkably high, at around USD 144 trillion as of 2022, boosted by both real estate and diverse financial assets.
Australia
Australians also have a considerable household net worth, registering at about USD 10.9 trillion, with real estate being a major component.
European Countries
European countries vary widely. For example, France’s household net worth is around USD 18.6 trillion, and the UK’s stands at approximately USD 15.1 trillion. Germany, which has a smaller proportion of private home ownership compared to other assets, has a net worth of about USD 16.9 trillion.
These comparisons highlight that household net worth can differ substantially based on the structure of the economy, the role of real estate, and the distribution of other assets like stocks and bonds.
Wealth on Per Capita Basis
Comparing household net worth on a per capita basis gives us a clearer picture of how wealth is distributed among the populations of different countries. Here’s how Canada’s per capita household net worth stacks up against a few other nations:
Canada
As mentioned, the total household net worth is around CAD 17 trillion. With a population of approximately 38 million, this translates to a per capita net worth of about CAD 447,000.
United States
With a total household net worth of around USD 144 trillion and a population of about 331 million, the U.S. has a per capita net worth of approximately USD 435,000.
Australia
Australia’s household net worth of AUD 14.9 trillion and a population of about 25.7 million people results in a per capita net worth of around AUD 580,000, which is quite high, reflecting a significant real estate value per capita.
United Kingdom
With a total household net worth of GBP 11.4 trillion and a population of about 67 million, the UK’s per capita net worth is approximately GBP 170,000.
Germany
Germany, with a net worth of about EUR 15 trillion and a population of roughly 83 million, has a per capita net worth of around EUR 180,000.
Summary
From this comparison, we can see that Canada’s per capita household net worth is relatively high and compares favourably with other wealthy nations, particularly the United States. Australia appears to have an even higher per capita net worth, largely due to its strong real estate market. In contrast, European countries like the UK and Germany have lower per capita net worths, which can be attributed to differences in real estate prices, wealth distribution, and the structure of financial assets.
