The households in the lowest 20% of income earners saw weaker growth in disposable income (4%) relative to other income levels. And while they saw their wages increase by $115 or 5.2%, they saw mortgage and consumer credit costs rise by $122 or 9.4%. Wage growth was greater for public sector workers than goods producers.
For the highest 20% of income earners, their disposable income grew by 7% year-over-year in the third quarter, more than the other quintiles, as growth in investment income grew 15 times higher than the increase in interest paid on borrowing.
The wealthiest 20% of Canadian households accounted for almost two-thirds of Canada’s total net worth in the third quarter of 2024, averaging $3.3 million per household, while the least wealthy households (bottom 40% of the wealth distribution) accounted for 3%, averaging $83,189.
However, the wealth gap stabilized as the lowest 20% saw gains in the average value of their financial assets (+9%) and real estate (+3%). Although the wealthiest 20% saw financial assets rise 12%, their real estate assets lost 4% of their value.
Wealthier households tended to hold onto their real estate assets while the less-well-off were more likely to purchase or refinance at more favourable terms as interest rates eased. The least wealthy saw the fastest rise in their net worth (8%) among all the income groups, thanks to their real estate assets.
