Canadian household wealth rises $548 billion in first quarter
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Canadian households recorded one of the largest increases ever in their net worth in the first three months of this year, a sharp rise in wealth that should support the economy.
Net worth in aggregate increased by $548 billion in the first quarter, Statistics Canada reported on Thursday, on the back of rising stock markets and a recovery in real estate values. The increase is the largest quarterly gain outside of the pandemic era when net worth was fueled by government stimulus and record-low interest rates.
The numbers suggest that many households are seeing improving balance sheets. Not only are the value of household assets surging, but Canadians are slowing down on borrowing. Household debt was up $7.4 billion in the first three months, one of the smallest quarterly increases of the past 20 years.
Improving household balance sheets, coupled with falling interest rates, appears to be buoying consumer confidence. The Bloomberg Nanos Canadian Consumer Confidence index rose last week to the highest since May 2022.
The only caveat is that these wealth gains aren’t evenly distributed. According to Statistics Canada, over 90 per cent of net worth is held by those households that own a home.
