Leftbank condos . The assets soared and the homeowners became the biggest winners! Driven by soaring real estate values, Canadian household net worth soared in early 2021, while wealth was unevenly distributed, with older and homeowners among the population the biggest winners.Please Visit: Leftbank condos to Get Your VVIP Registration Today!
In the first quarter of this year, all assets held by households minus liabilities increased by 6% to C $13.7 trillion, the Federal Bureau of Statistics said in a report. Over the past year, that is, since the beginning of 2020, this figure has increased by 2 trillion yuan.
The wealth growth of Canadian households is mainly due to the booming real estate market: the value of residential real estate rose 9.5% to 596 billion yuan in the first quarter of this year, a record increase in both growth and value, thus driving the wealth growth of Canadian families.
Compared with 2020, the value of real estate for the whole of last year increased by 750 billion yuan. In other words, the added value of real estate in the first quarter of this year is almost 80% of the value of last year.
At the end of the first quarter of this year, net national assets, including government and corporate wealth, jumped by more than 1 trillion yuan to 15 trillion yuan.
But Statistics Canada says that although Canadian household wealth has increased significantly, it is not evenly distributed:
In terms of age groups, older Canadians are the biggest winners: the average net worth of families with the main income under the age of 35 is 260000 yuan, while that of families over 55 years old is 1.1 million yuan.
Due to the appreciation of house prices, the average net worth of Canadian homeowners increased by 730 billion yuan, while the average net worth of renters increased by 43 billion yuan.
The debt of Canadian households has always been a concern for the government and economists.
But Statistics Canada said in a report released on the same day that even under the impact of the epidemic, the ratio of Canadian household debt to disposable income (debt-to-disposable income ratio) has declined.
Compared with the fourth quarter of last year, Canadian household debt fell to 172.3 per cent of disposable income in the first quarter of this year on a seasonally adjusted basis, compared with 174.0 per cent in the fourth quarter of 2020, the Bureau of Statistics said.
This means that the average household owed about $1.74 for every $1 of disposable income in the fourth quarter of last year, compared with 1.723 yuan in the first quarter of this year.