Are Canadians getting wealthier?

It certainly appears that Canadian households are becoming wealthier when analyzing their net worth. Calculating household net worth is straightforward. It is what individuals or families would have left after selling off all their assets and paying off all their debts. Using data from Table 11-10-0016-01  Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security (x 1,000,000) produced by Statistics Canada, we dive into changes in the median and average net worth of Canadian households at a national level and compare differences across provinces. We’ll also explore the key drivers of the changes, including the most common types of assets and debt.

Before we get into the nitty gritty, let’s clarify one point. Statistics Canada classifies individuals living alone or with others who are not blood relatives or their partners as persons not in an economic family, and couples or blood relatives living together as economic families. When referring to these groups collectively, they are called economic families and persons not in an economic family, or for our purposes, households. In this article, we use "households" and "families" interchangeably, even for single-person households. Now that we've covered this, let’s dive into the data.

How has the net worth of Canadian households changed?

The net worth of Canadians is on the rise. In 2023, the median net worth of households was $519,700, an increase of $138,600 or 36%, from $381,100 in 2019. Between 1999 and 2023, the median net worth of households increased by 193%.

There are stark regional differences. The median household net worth of families in British Columbia in 2023 was the highest in the country at $773,500. Meanwhile, the lowest levels were in New Brunswick, where the median net worth of families was $286,200, 63% lower than in British Columbia and a little higher than half of the median nationally.

We looked at the median; now let’s explore how the average net worth of families has been trending. The average net worth of families has also moved upwards. In 1999, the average net worth of Canadian households was $412,400. In 2023, that figure more than doubled, reaching $995,900. The average is over $400,000 greater than the median, indicating that more families have a net worth above the median and skewing the data positively.

Regionally, British Columbia led the way. Families in that province recorded having an average net worth of $1,265,400. They were followed by Ontario, where households had an average net worth of around $1.1 million. The average net worth of families was lowest in New Brunswick. In that province, families reported having an average net worth of $506,400.

What are the most common types of assets?

On average, a Canadian household had $1,141,500 in assets in 2023, while the median was $680,200. Almost half of Canadians’ net worth is tied to real estate. This includes their principal residence and any additional properties that they may own. On average, the value of Canadian households’ real estate was valued at $673,800 and the median was $500,000. Real estate has been the single most valuable asset Canadians own. Principal residences accounted for 38.2%

What are the most common types of debt?

The median household debt in 2023 was $100,000, while the average was $211,500. Mortgages accounted for the largest share of debt among Canadian households. Mortgages for principal residences accounted for 63.4% of all household debt. This was followed by mortgages for other real estate, which may include cabins, cottages, and additional properties at 19.1%. Together, mortgages made up 82.5% of all household debt in Canada. On average, Canadian households had $308,600 in mortgage debt, with a median nationally of $205,000.