Richest provinces see smallest net worth increases

Canada’s richest provinces saw the smallest increases in household net worth last year, as real estate values in some of the country’s major markets declined.

British Columbia and Alberta posted the smallest increases in net worth by far, with gains of 2.8 per cent and 2.5 per cent respectively, according to a survey by WealthScapes 2010, a division of Environics Analytics.

Ontario did slightly better with a gain of 4.7 per cent, but still lagged provinces like Quebec (6.2 per cent), Saskatchewan (6.5 per cent) and Newfoundland and Labrador (9.7 per cent).

B.C. still ranks as Canada’s wealthiest province, with an average net worth of $489,812 compared with a national average of $351,282. Alberta came in second, with $415,712, while Ontario followed close behind at $403,194.

Vancouver clung to its No. 1 spot as the city with the highest household net worth in Canada, with an average of $572,988. However, its net worth also grew at a rate of only 3.1 per cent, compared with a national average of 4.6 per cent. This is largely due to the city’s declining real estate values, which fell 0.6 per cent in 2009.

Vancouverites also increased their debt by 6.4 per cent to $158,372 last year, a level second only to Calgary, at $184,850.

Nationally, households increased their debtload by 5.7 per cent.

Toronto, meanwhile, knocked Calgary out of second place thanks to a strong housing market. In 2009, Calgary’s real estate market fell 3.7 per cent while Toronto’s gained 2.3 per cent. Toronto’s average household net worth now stands at $531,621 compared to Calgary’s $526,534.

Quebec City posted the biggest gain of Canada’s 10 largest cities, with net worth rising 10.3 per cent to $212,078 last year. This was due in large part to a housing boom in the city, which saw real estate values jump 7.9 per cent in 2009, compared to a national average of 1.8 per cent.

Residents of Saskatchewan and Newfoundland were the best savers last year, with an increase in liquid assets of 11.9 per cent and 7.4 per cent, respectively. Albertans were the riskiest investors, putting 69 per cent of their portfolios in stocks and mutual funds, while Newfoundlanders had 55.9 per cent of their savings in the relative safety of bank deposits and bonds.

“Clearly, as the global economic situation continues to stabilize, Canadians will have a sizable cache of funds to reinvest in longer term savings vehicles – or simply go on a shopping spree,” the report said.