The wealth gap in Canada is widening fast, and the biggest factor behind it? Homeownership. According to the latest Survey of Financial Security by Statistics Canada, homeowners have a median net worth nearly 30 times greater than renters. That staggering difference isn’t just a fluke of statistics — it highlights a deeper structural divide in how Canadians build and hold wealth.

In this article, we break down what’s driving this growing divide, why owning a home has become the single biggest wealth accelerator for Canadians, and what it means for future generations trying to get on the property ladder.

Wealth Differences by Age: The Gap Gets Bigger Over Time For young Canadians, the divide starts early. Among those under 35, homeowners report a median net worth of $457,100. Renters in the same age group? Just $44,000. That’s already more than a 10x difference — and it only grows with age.

By the time Canadians reach their late 50s and early 60s, the gap explodes. Homeowners aged 55 to 64 have a median net worth of $1.24 million, compared to just $43,000 for renters. Among those over 65, homeowners still sit above the $1 million mark, while renters report only $72,000.

📌 Net Worth by Age: Homeowners vs. Renters

Homeownership remains one of the biggest drivers of wealth in Canada. Here’s how average net worth breaks down by age — and whether you rent or own.

👤 Age Group	🏠 Average Net Worth (Owners)	🚪 Average Net Worth (Renters)
Under 35	$309,000	$47,000
35–44	$626,000	$129,000
45–54	$1,059,000	$193,000
55–64	$1,417,000	$260,000
65+	$1,398,000	$273,000

*Based on Statistics Canada data (2023). Net worth includes real estate equity, pensions, investments, and debts.

Why Homeownership Is a Wealth Engine It’s no mystery why homeownership builds wealth. Unlike rent, mortgage payments often contribute to equity in a rising asset. Over time, that property appreciates in value, all while the homeowner pays down debt.

Interestingly, even without employer pensions, homeowners still outperform renters who have one. The median net worth for homeowners without pensions is $914,000, while renters with pensions average just $359,000. Owning property clearly outweighs traditional retirement plans for wealth accumulation in Canada.

Soaring Home Prices: A Double-Edged Sword The last decade has seen real estate values skyrocket, especially in urban centres like Toronto and Vancouver. Nationally, average home prices are up over 64% since 2013, and 30% in just the past five years. That’s great news for existing homeowners — especially younger ones who bought early.

But for those still trying to break into the market, it’s a massive barrier. Many Canadians are finding homeownership increasingly out of reach, pushing the overall homeownership rate down.

Government Action: Promises vs Reality In response, the Canadian government is rolling out new policies aimed at improving affordability and boosting rental housing supply. These include:

Unlocking 70 federal properties for new housing development
Allowing refinancing up to 90% of a home’s value to build secondary suites
Offering tax incentives and cheaper loans to builders
Introducing a vacant land tax consultation to spur development

There are also immigration policy changes. The government has announced plans to lower immigration targets and reduce the number of temporary residents in an effort to ease pressure on urban housing markets. A projected drop of 900,000 residents could reduce rental demand, especially in cities like Toronto, where small-unit demand has surged.

📊 Government Housing Initiatives & Their Expected Impact

Here’s a quick look at the major federal and provincial housing programs rolled out in 2024–2025 — and what impact they’re expected to have on affordability and supply across Canada:

🏗️

Housing Accelerator Fund
$4 billion in funding to municipalities to fast-track new home construction.
📈 Impact: Expected to add 100,000+ homes by 2027 and reduce development bottlenecks.

🧾

First Home Savings Account (FHSA)
Tax-free savings account to help Canadians save up to $40,000 toward a down payment.
📉 Impact: Improves affordability for younger buyers, especially under 35.

🔧

Renovation & Retrofit Rebates
Incentives for heat pumps, insulation, and green home upgrades under Greener Homes program.
🌿 Impact: Helps reduce long-term utility costs, especially for older homes.

🛑

Foreign Buyer Ban
Extension of ban on non-residents purchasing Canadian residential property (until end of 2026).
🪙 Impact: Minimal direct effect on prices, but increases perceived fairness and reduces investor-driven pressure.

🏘️

Public Land Housing Mandate
Requires federally owned land sold for development to include a minimum % of affordable units.
🏠 Impact: Boosts affordable housing stock in major urban centres.

*Estimates based on federal budget documents and CMHC projections for 2025 and beyond.

Young Canadians Still Dream of Owning a Home Despite affordability challenges, young Canadians haven’t given up hope. Scotiabank’s 2024 housing poll shows that 56% of Millennials and Gen Z still feel economic strain, but many are moving forward with homeownership plans.

In fact, 37% of Gen Z and 31% of Millennials say recent financial improvements have encouraged them to buy sooner. That’s more than double the rate for Gen X and Baby Boomers.

What’s changing is how young Canadians engage with the mortgage market. Gen Z prefers digital applications (35%), and over half of Millennials want clearer homebuying guidance. There’s a growing demand for simpler, more transparent tools to help navigate the complex mortgage landscape.

The Other Side of the Story: Canada’s Wealth Concentration Problem While the homeownership wealth effect is clear, not all households are benefiting equally. According to RBC Economics, Canada’s top 20% of income earners now save nearly a third of their income every quarter, while the lowest 20% spend 105% of their income just to cover essentials.

Middle-income households are also feeling squeezed, with those in the 40-60% income range now spending 17% more than they earn — a jump from 9% pre-pandemic. Essentials like groceries and gas are up 25-33%, leaving little room for savings, let alone a down payment.

Even StatsCan’s data may be underreporting the true extent of wealth inequality. Their survey groups the top 5% together, missing the full picture of how concentrated wealth has become among the top 1%.

📈 Income vs. Savings by Income Quintile

Here’s how household income compares with average savings levels across income brackets in Canada. Unsurprisingly, the savings gap widens as income rises.

🏷️ Income Quintile	💰 Avg Household Income	🏦 Avg Savings (Liquid Assets)	📊 Savings Rate Estimate
Lowest 20%	$28,000	$2,500	~9%
Second 20%	$52,000	$7,600	~15%
Middle 20%	$78,000	$16,500	~21%
Fourth 20%	$110,000	$35,200	~32%
Top 20%	$185,000	$112,000	~60%

*Savings include liquid assets like cash, chequing/savings accounts, and TFSAs. Source: Statistics Canada, 2023 household finance survey estimates.

Final Thoughts: The Homeownership Divide Is Reshaping Canada The fact that homeowners have 30 times the wealth of renters is more than a statistic — it’s a snapshot of a growing divide in Canada’s financial landscape. As housing continues to be the biggest driver of net worth, those locked out of ownership are finding it harder to catch up.

While new policies and immigration shifts might ease some market pressures, the solution must go deeper. Increasing housing supply, modernizing mortgage support systems, and tackling wage stagnation will be key to building a more inclusive path to wealth.

As homeowners build equity and renters face rising costs, the real culprit may be macroeconomic policy. Explore the complex relationship between inflation, interest rates, and financial inequality to see how we got here.

If you’re trying to make your way into the housing market, don’t go it alone. A personalized mortgage plan could be your best first step toward building long-term financial security. Reach out to a mortgage expert who can help you choose the right mortgage, lock in the best rate, and develop a clear path to homeownership.