Canadian households are worth more than $1 million on average: How do you stack up? (2024)

Average household net worth in Canada hit $1,009,483, up nearly 30 per cent from before the pandemic

Author of the article:

Joe Hood, Denise Paglinawan

Published Jul 31, 2024Last updated 5days ago4 minute read

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Canadian households are worth more than $1 million on average: How do you stack up? (1)

Canadian household wealth jumped to a new collective high of $16.92 trillion in the first quarter of 2024, topping the previous record of $16.84 trillion set in 2022. The latest gains are part of a stunning rise that has seen cumulative wealth jump more than 40 per cent over the past four years, driven largely by real estate and financial asset gains, especially through the pandemic period. The effects, however, have not been even across age and income cohorts. To illustrate, consider only that while household wealth on average is now above $1 million, at least 60 per cent of households are nowhere close to that threshold. The Financial Post’s Joe Hood and Denise Paglinawan break down the current state of household wealth in Canada — and the implications for the economy going forward.

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Canadian households are worth more than $1 million on average: How do you stack up? (3)

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1. Canadian households are now worth more than $1 million on average

Being worth a million dollars used to be the exception, but for Canadian households it is now just average — though it isn’t quite as straightforward as it sounds. Data released by Statistics Canada in June showed that in the first quarter of 2024, average household net worth reached $1,009,483, an increase of about 2.5 per cent from a year ago and up nearly 28 per cent from the final quarter of 2019, the last full quarter before the pandemic. While total household wealth may be at a record, it isn’t the first time average wealth has passed the million-dollar threshold. For three quarters during the pandemic, when real estate values ballooned and savings rates soared, average household wealth also topped seven figures. Stock market gains have helped fuel the latest wave of wealth growth, contributing to inequality along the way.

Canadian households are worth more than $1 million on average: How do you stack up? (4)

2. Not all age and socio-economic cohorts are participating equally

Overall household wealth may be on the rise, but disparities remain along age and socio-economic lines. Canadian households in the 55-64 age bracket were the wealthiest in the first quarter, with average household net worth of $1,592,996. They were followed by those aged 45-54 at $1,342,851, the 65+ crowd at $1,121,020 and those aged 35-44 at $655,195. Households under age 35 were least wealthy with an average net worth of $336,348. A silver lining for young Canadians, though, is that they have seen their wealth increase the most since before the pandemic, up 42.5 per cent from $236,039.

Canadian households are worth more than $1 million on average: How do you stack up? (5)

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From a generational perspective, the baby boomers narrowed the gap on generation X, which remains the wealthiest on average. Over the past year, boomer wealth surged by nearly nine per cent to $1,399,950 while gen X increased their wealth by only two per cent to $1,471,767. Millennials actually saw their wealth decline, taking a hit on real estate.

There are significant discrepancies along wealth and income lines as well. The wealthiest 20 per cent of Canadians have a household net worth averaging $3,412,111, while the bottom 20 per cent have a net worth that is slightly negative, on average. The trends are similar, but a little less pronounced, when it comes to income, with only the top two tranches of income earners having average household net worth above the $1,000,000 level.

The share of disposable income between households in the top 40 per cent and the bottom 40 per cent of the income distribution also reached its widest gap since 2008, according to Statistics Canada.

Canadian households are worth more than $1 million on average: How do you stack up? (6)

3. Financial assets have taken the lead over real estate

Real estate has been the primary driver of household wealth creation since the pandemic. Going back to the final quarter of 2019, total real estate wealth has grown by 48 per cent to $8.92 trillion. Over the same time frame, financial assets have grown by a less spectacular 25.7 per cent to $10.02 trillion. But in recent quarters, that relationship has flipped.

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In the first quarter, financial assets rose by 3.6 per cent quarter-over-quarter to top $10 trillion for the first time, largely a result of a roaring stock market, Bank of Montreal senior economist Sal Guatieri said. That, he noted, is good for wealthier households that hold investments, but not so great for those without the savings to invest. Statistics Canada noted that net worth growth slowed for the least wealthy households as higher mortgage debt offset gains in real estate. The wealthiest households, meanwhile, were able to grew their wealth due to larger financial holdings and a slower rise in debt. TD economist Maria Solovieva said the shift to financial asset gains played a big part in widening the wealth gap, as lower income households had been participating in wealth gains through surging real estate.

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4. Pressure is growing on the consumer

It’s no secret that consumers, buoyed by the overall growth of household wealth, have been keeping the economy humming. But inflation and higher debt costs due to rising interest rates are threatening to change that. Solovieva noted that the challenge is particularly onerous for low- and middle-income families that rely on their savings to make ends meet, and who are being squeezed by continued inflation on necessities.This will have direct implications on future spending as these families will have fewer liquid resources to tap into, she said. “People are trying to manage their high interest rate risk and high inflationary environment by reducing spending,” she said, leaving wealthier households to pick up the slack. “Spending is still very, very weak in Canada,” Guatieri added, noting that people, on average, have been cutting back not just on discretionary items but also some essentials. He does, however, see the picture brightening due to interest cuts from the Bank of Canada. “We’ll start to see a pickup in consumer spending through next year,” he said.

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Canadian households are worth more than $1 million on average: How do you stack up? (2024)

FAQs

How many Canadians make more than 100000? ›

Income distribution in Canada in 2020, by income level (in Canadian dollars)
Income in Canadian dollarsNumber of people
Persons with income of $100,000 and over3,081,930
Persons with income of $150,000 and over1,047,240
Persons with income of $200,000 and over513,450
Persons with income of $250,000 and over302,050
9 more rows
Jul 31, 2024

What percentage of Canadians have over 1 million dollars? ›

According to a recent study, there are around 1,681,969 millionaires living in Canada. The nation's population is roughly 39 million which means approximately 4% of Canadians are millionaires. That's a lot of wealth! This number is expected to grow in the next few years as well.

What net worth do you need to be in the top 1% in USA? ›

Key Takeaways
  • The minimum net worth of the top 1% of households is roughly $13.7 million. ...
  • An individual would have to earn an average of $407,500 per year to join the top 1%. ...
  • The median household income in the U.S. was $74,580 in 2022.

How much money do you need to be in the top 10% in Canada? ›

Top 10% The top 10% percent of income earners are those who are considered to be upper middle class as well. The threshold amount for the top 10% is $125,945. This amount is only slightly higher than the top threshold for middle-class income, which is $106,717.

Is 75k a good salary in Canada? ›

The average salary in Toronto is $62,050, which is 14% higher than the Canadian average salary of $54,450. A person making $75,000 a year in Toronto makes 20.9% more than the average working person in Toronto and will take home about $56,110.

What is a good salary in Canada? ›

The average good salary in Canada is $46,215 per year or $23.70 per hour. Entry-level positions start at $35,100 per year, while most experienced workers make up to $91,334 per year.

How wealthy do you need to be in the top 1%? ›

In the United States, this number stood at $5.8 million last year. Despite the 1% being considered ultra-rich, Knight Frank remarks that many of the world's 1% are not actually ultra-high-net-worth individuals with assets of over $30 million.

What is the top 1% of the world? ›

In the U.S., it may take you $5.81 million to be in the top 1%, but it takes a minimum net worth of $30 million to be considered among the ultra-high net worth crowd. As of the end of 2023, this ultra-high net worth population is on the rise, reaching 626,000 globally, up from just over 600,000 a year earlier.

How much money does someone need to be considered middle class? ›

The Pew Research Center defines the middle class as households that earn between two-thirds and double the median U.S. household income, which was $65,000 in 2021, according to the U.S. Census Bureau. 21 Using Pew's yardstick, middle income is made up of people who make between $43,350 and $130,000.

What is considered wealthy net worth in Canada? ›

In general, to be rich, you have to have a high net worth, not a high income. You'd have to define the level of wealth that means rich to you. But $107,000 CAD gets you into the lower levels of the upper middle class. $316,000 CAD gets you into the 1%, which most would consider Canadian upper class.

What is considered upper class in Canada? ›

How are income classes defined in Canada?
ClassMinimum income levelMaximum income level
Lower$0$53,359
Middle$53,359$106,717
Upper middle$106,717$235,675
Upper$235,675-

What is the top 1% wealth in Canada? ›

Considering income including capital gains, average income for the top 1% was $811,800 in 2021, up 20.5% from 2020. In 2021, the average income for the top 0.1% was $3,230,000, up 27.6%, and that for the top 0.01% was $12,542,100, up 30.0%.

What percentage of the population earns more than $100000? ›

Over one-third of American families earn $100,000 or more

The U.S. Census Bureau found that 37.1% of U.S. households earned at least $100,000 in 2022. Here's a more detailed breakdown of six-figure income brackets and the percentage of households in each one: $100,000 to $149,999: 16.9%

What is top 5% income in Canada? ›

The top 10% of Canadians had incomes over $80,400

The top 10% of Canadians made an average income of $134,900, with the top 5% making one third more ($179,800) and the top 1% almost triple that amount ($381,300). Meanwhile, the bottom 90% had an average income of $28,000.

What is considered high income in Canada? ›

Different Income Classes in Canada
ClassIncome Amounts
Lower Class$0 - $53,359
Middle Class$53,359 - $106,717
Upper Middle Class$106,717 - $235,675
Upper Class$235,675 and up
Oct 12, 2023

What percentage of the world population makes over 100k? ›

The next level up, with wealth of $10,000 to $100,000, contains 21 percent of the world's population, but has 12.5 percent of its wealth. The next level, from $100,000 to $1 million, has just 7.3 percent of the population and about 40 percent of the wealth.

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