Wealth Disparity in Canada: Homeowners Hold 91% of the Country's Wealth

Wealth Disparity in Canada: Homeowners Hold 91% of the Country's Wealth
April 24, 2024

A recent report by TD Economics and Statistics Canada has shed light on a significant wealth disparity in Canada, revealing that homeowners hold a staggering 91% of the country's wealth. This leaves renters with a mere 9% share of the net wealth, highlighting a growing gap between the two groups.

A Widening Gap

The data indicates that the disparity between renters and homeowners is increasing. Homeowners' net worth has grown significantly, driven by rising real estate values and increased investment in property. In contrast, renters' net worth has stagnated, with limited opportunities for wealth accumulation.

Key Driver of Wealth

Real estate holdings play a significant role in the wealth disparity. The highest-income Canadian families hold an average of $1 million in real estate assets, while the lowest-income quintile holds only $240,000. This disparity is further exacerbated by the primary residence exemption, which allows wealthier Canadians to accumulate wealth tax-free.

Renters Struggle to Save

Renters face significant barriers to saving and investing, with limited disposable income and high debt levels. The lowest-income quintile has a household debt-to-income ratio of almost 300%, making it challenging to break the cycle of debt and accumulate wealth.

A Call for Diversification

The report highlights the need for policies that promote diversification of investments and support lower-income Canadians in building wealth. Additionally, initiatives aimed at increasing access to affordable housing and reducing debt levels can help renters build a more secure financial future.


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