Canada Housing Market

Canadian household wealth increased last year, but new data suggests the gains were not evenly shared.

According to Statistics Canada data highlighted by Better Dwelling, average household net worth rose in Q4 2025. However, the biggest gains went to the wealthiest households, while lower-wealth households took on mortgage debt at a much faster rate.

Household Wealth Increased in 2025

Canadian households saw their average net worth rise to approximately $1.08 million in Q4 2025.

That represents an increase of:

• 5.3% year-over-year
• Approximately $53,900 more per household

However, the increase was largely driven by financial assets, especially equities, rather than real estate. Household financial assets rose 9.9% year-over-year, while real estate assets fell 0.7%.

Wealthiest Households Saw the Biggest Gains

The top 20% of Canadian households saw their average net worth climb to approximately $3.54 million in Q4 2025.

That was an increase of:

• 6.0% year-over-year
• Approximately $201,400 more per household

By comparison, the bottom 40% of households saw average net worth rise to about $81,700, up just 2.1%, or around $1,700 year-over-year.

This means the wealthiest households gained roughly 120 times more in dollar terms than the bottom 40%.

Stock Market Gains Are Widening the Gap

A major reason for the widening gap is asset allocation.

Higher-wealth households tend to hold more financial assets, including stocks. As equity markets rose, these households benefited more from investment gains.

The top 20% saw financial assets grow 10.8% year-over-year, while the bottom 40% saw financial assets grow 6.1%.

Because stock ownership is more concentrated among higher-wealth households, market gains tend to increase inequality.

Lower-Wealth Households Took on More Mortgage Debt

The data also shows a sharp divide in mortgage borrowing.

The wealthiest households increased mortgage debt by just 0.7% year-over-year.

Meanwhile, the bottom 40% increased mortgage debt by 7.5%, meaning lower-wealth households added mortgage debt at more than 10 times the rate of the wealthiest households.

This matters because it suggests lower-wealth households are increasingly relying on debt to access housing, while wealthier households are gaining more from financial assets.

The Top 20% Hold Most of Canada’s Wealth

The wealth gap is now at one of its widest points in years.

The top 20% of households held 65.7% of Canada’s total household net worth in Q4 2025, the highest share since Q3 2020.

Meanwhile, the bottom 40% held just 3.0% of total household net worth.

This highlights how unevenly wealth is distributed across Canadian households.

What This Signals for Canada’s Housing Market

The latest data shows how housing and wealth inequality are increasingly connected.

For many lower-wealth households, homeownership requires taking on larger debt loads. But for wealthier households, rising financial markets are driving much larger gains.

This creates a growing divide between:

• Households building wealth through investments
• Households taking on more mortgage debt to access housing
• Younger or lower-income households struggling to enter the market

What This Signals for Ontario

In Ontario, where home prices remain high, this trend is especially important.

Higher housing costs may continue to push lower-wealth households into larger mortgages, while wealthier households are better positioned to benefit from investment growth and lower borrowing costs.

For buyers, this reinforces how affordability is not just about home prices. It is also about debt, income, and access to wealth-building assets.

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References

Better Dwelling. (2026, May 4). Canadian wealth inequality soars as rich buy stocks, poor take out mortgages.
https://betterdwelling.com/canadian-wealth-inequality-soars-as-rich-buy-stocks-poor-take-out-mortgages/

Statistics Canada. (2026). Distributions of household economic accounts for wealth of Canadian households, fourth quarter 2025.
https://www150.statcan.gc.ca/

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