OTTAWA — Statistics Canada's latest financial security survey shows a stark disparity between the wealth of homeowners and renters, even as it fails to capture the true scale what's owned by Canada's richest families.
The survey, conducted only every few years, shows families whose main earner was 55 to 64 and who owned their homed and had an employer-sponsored pension had a median net worth of $1.4 million in 2023, while renters without a pension plan had a median net worth of $11,900.
Home ownership was the main factor in the difference, as those who owned their home but didn't have a pension had a median net worth of $914,000, while those with a pension but did not own had a median net worth of $359,000.
The picture was similar for families whose main earner was under 35, as the median net worth of those who own their principal residence was $457,100, compared with $44,000 for those who don't.
The gap for young families is even larger though, as Statistics Canada notes that of that $44,000 net worth, an increasing amount is due to renters owning real estate that is not their principal residence.
Dan Skilleter, director of policy at Social Capital Partners, says the results show a dysfunctional system where real estate ownership is an essential stepping-stone to financial security, even as the numbers underplay the wealth at the top.
This report by The Canadian Press was first published Oct. 29, 2024.
The Canadian Press
