Canada’s Growing Wealth Divide: Why Homeowners Have 30 Times Net Worth of Renters

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In today’s Canada, the line between financial security and struggle often comes down to one thing: homeownership. According to the latest Statistics Canada Survey of Financial Security, the difference in net worth between homeowners and renters isn’t just wide — it’s staggering.

Across the country, homeowners report a median net worth as much as 30 times greater than renters. And that gap is widening. As property values climb, Canadians who own homes are building equity and wealth at an unprecedented pace, while renters are left behind, often with minimal savings and rising living costs.

Let’s break down what’s driving this growing divide.

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Wealth Differences by Age Cohort

The disparity starts early and only gets more dramatic with age. For Canadians under 35, the median net worth of homeowners is around $457,100, while renters sit at just $44,000. That gap only grows with time.

By age 55 to 64, homeowners have a median net worth of $1.24 million, compared to just $43,000 for renters in the same age group. Even Canadians aged 65 and up show a similar pattern: homeowners at $1.08 million versus $72,000 for renters.

This data shows the compounding effect of homeownership over decades. As property values appreciate and mortgages get paid down, homeowner equity builds — while renters often face increased costs without accruing any assets.

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Homeownership as a Wealth Vehicle

Beyond the emotional security of having a place to call home, ownership is proving to be one of the most powerful wealth-building tools available to Canadians.

The survey shows that even Canadians without a pension but who own their homes have a median net worth of $914,000. Compare that to renters who do have a pension: their net worth averages $359,000. That’s a $555,000 difference.

Owning real estate, especially in markets like Toronto, Vancouver, or Ottawa, is now one of the few ways Canadians can outpace inflation and secure retirement savings.

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The Impact of Soaring Home Prices

Real estate appreciation has accelerated the divide. Nationally, home prices have climbed 30% in just five years and 64% over the past decade. That kind of growth is fuelling wealth gains for existing homeowners, but it’s also making it harder for new buyers to enter the market.

In Toronto and Vancouver, where average home prices exceed $1 million, younger Canadians face a daunting uphill battle. The result? Homeownership rates among Millennials and Gen Z are slipping, while their older counterparts are sitting on skyrocketing equity.

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Government Initiatives and Market Challenges

Governments are trying to respond to the affordability crisis. Measures include tax incentives for developers, low-interest loans for new rental housing, and reduced immigration targets to ease demand.

Tax Cuts and Loans for Builders

Financial incentives are encouraging developers to add rental supply, which could slow rent increases. But in many cities, high construction costs and bureaucratic delays continue to limit progress.

Immigration Reductions

In 2024, Canada announced reduced immigration and caps on temporary residents. While this may ease pressure in big-city rental markets, some experts worry it could reduce demand for new builds and slow overall housing supply growth.

Housing demand is complex. Policies must strike a balance between affordability and continued construction momentum.

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Young Canadians and the Homeownership Dream

Despite affordability challenges, Gen Z and Millennials haven’t given up hope.

According to Scotiabank, 56% of younger Canadians feel financially strained, but many are still pushing forward with homeownership goals. In fact, 37% of Gen Z and 31% of Millennials have accelerated their buying plans due to recent rate cuts.

Mortgage renewals are also top of mind. 72% of Gen Z and 48% of Millennials are facing renewals for the first time, often under higher-rate conditions than they signed up for.

Younger borrowers are also shaping how mortgages are done. 35% of Gen Z prefer to apply online, and 63% want simpler, clearer homebuying advice — a clear call to lenders to modernize.

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Survey Limitations and Wealth Concentration

While the StatCan survey offers valuable insights, it doesn’t fully capture the scope of wealth inequality.

For example, it lumps together the top 5% of earners but doesn’t distinguish the top 1%, where Canada’s ultra-wealthy are concentrated. According to RBC, the wealthiest Canadians now hold 60% of all financial asset growth since 2019.

Meanwhile, low-income households are increasingly squeezed. The bottom 20% are spending 105% of their disposable income on necessities. Middle-income earners are also slipping into negative savings territory, spending 17% more than they earn — up from 9% in 2019.

These realities make it even harder for renters to save for a down payment, trapping many in a cycle of high housing costs and limited financial growth.

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Final Thoughts

The wealth divide in Canada isn’t just a housing issue — it’s an economic one. With homeownership driving long-term financial security, the stakes have never been higher.

While government reforms aim to make housing more accessible, the path to ownership remains steep for many. For those who can break in, real estate continues to offer unmatched wealth-building potential.

If you’re weighing your mortgage options, or just looking for a way to finally enter the market, Mortgage.Expert can help. Whether it’s your first home, a refinance, or a mortgage renewal, our experts are ready to guide you through your next steps.

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Why Choose Mortgage.Expert

Our mortgage advisors aren’t paid on commission. That means we give honest, unbiased advice based on what’s best for you, not our bottom line.

Whether you’re a first-time buyer, a young homeowner navigating your first renewal, or someone looking to escape the rent trap, we’ll help you make smart, confident decisions.

Let’s close the gap — together. Get in touch with Mortgage.Expert today.