CANADA’S HOUSING MARKET: NET WORTH SURGES ON REAL ESTATE BUT RENTERS LEFT BEHIND
The pandemic real-estate boom has made some Canadians richer, while others languish.
The net worth of the nation’s households increased by about C$770 billion ($633 billion) in the first three months of 2021, a record 6% gain, to C$13.7 trillion, Statistics Canada said in a report Friday. Since the start of 2020, that figure has increased by more than C$2 trillion, largely thanks to rising home prices.
But the data also show that windfalls are going largely to homeowners and older Canadians. Households that own their home accounted for almost all of the gains in the first quarter — C$730 billion. The wealth of renters was up just C$43 billion. That disparity also comes as rising home values make owning increasingly out of reach for many Canadians.
“The numbers speak to exacerbating wealth inequalities, because we also know that it is becoming even more difficult for renters to get into the housing market,” Jimmy Jean, chief economist at Desjardins Securities, said by email. “The financial burden of owning a property is now untenable for many.”
Household net worth spiked 21.5% in the first quarter from a year earlier, the largest gain in records to 1990. That’s more than triple the historical average of 6.8% yearly gains.
Story by: Terrades Delmoli