Household net worth buoyed by strong financial markets despite lower real estate values
Households were wealthier in the third quarter of 2024 as their net worth—the value of all assets minus all liabilities—increased $287.7 billion (+1.7%) to $17,287.1 billion. This marked the seventh increase in household net worth in the last eight quarters, a period during which household wealth increased by nearly $1.9 trillion.
Average net worth per household was steady at just over $1 million in the third quarter. However, household net worth is not evenly distributed across all wealth quintiles. For instance, the gap in wealth between the wealthiest (top 20% of the wealth distribution) and the least wealthy (bottom 40% of the wealth distribution) increased to 64.9 percentage points in the second quarter of 2024, up 0.4 percentage points from the second quarter of 2023.
Overall, households' financial assets increased 3.9% (+$400.0 billion) in the third quarter of 2024 to reach a record high ($10,637.1 billion), as domestic equity markets rebounded following a weak second quarter. This was the fourth consecutive quarter where households' financial assets reached a new record high. After losing footing in the second quarter, the S&P/TSX Composite Index rose 9.7% in the third quarter, outperforming the S&P 500 Index (+5.5%).
Households holding domestic or foreign equities, either directly or through other investment products such as funds, benefited from higher asset valuations. However, 71.6% of financial assets were held by the highest wealth quintile in the second quarter of 2024 and so recent financial gains may widen the wealth gap further.
Partly offsetting the rise in financial assets, the value of non-financial assets declined 0.8% (-$75.4 billion) to $9,693.5 billion, pulled lower by a decline in the value of residential real estate (-$88.1 billion). Also weighing against overall asset gains, household financial liabilities, composed primarily of mortgage and non-mortgage debt, increased $36.9 billion (+1.2%) in the third quarter.
Contact information
For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).