2024-10-29 18:48:00
Statistics Canada’s latest financial security survey reveals a stark disparity between the wealth of homeowners and renters, although it doesn’t capture the true extent of the wealth of Canada’s wealthiest families.
The survey, conducted only every two or three years, shows that families whose main income earner was aged 55 to 64 and who owned their home and benefited from an employer-sponsored retirement plan had a median net worth of $1.4 million in 2023, while renters without a retirement plan had a median net worth of $11,900.
Primary residence ownership was the main driver of the disparity, as families who owned their home, but did not have a retirement plan, had a median net worth of $914,000, while those who had a retirement plan, but were not homeowners, had a median net worth of $359,000.
The picture is similar for families whose main income earner is under the age of 35, since the median net worth of those who own their primary residence is $457,100, compared to $44,000 for those who do not.
The gap is even wider for young families, as Statistics Canada notes that, of this $44,000 net worth, a growing share is due to renters who own real estate that is not their primary residence.
Dan Skilleter, director of policy at Social Capital Partners, says the findings show a dysfunctional system in which home ownership is a critical stepping stone to financial security, even if the numbers underestimate the wealth at the top.
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