Canadian Households Have Higher Net Worths Than Their American Neighbors
According to recently released data from Environics Analytics Wealthscapes (via the Globe and Mail), Canadian households are, on average, richer than their American counterparts.
Environics Analytics Wealthscapes estimates that the average Canadian household had a total net worth of $363,202 in 2011, while the average American household had a total net worth of $319,970.
According to the Globe and Mail, this is the first time that Canadian households have ever had larger net worths than their neighbors to the south.
The big flip-flop in net worths has mostly come as a result of the economic crisis that ended up shattering the US real estate market. Canada has much more conservative mortgage rules, and this prevented the country from sustaining the beating that their neighbors to the south had to endure.
As a matter of fact, Canada's real estate market has blossomed since the onset of the global financial crisis - so much so that the Canadian government has taken steps to cool down an overheated real estate market in the country. A strong resource industry has helped to shield Canada from many of the troubles that are currently plaguing other countries throughout the world, including the United States.
The Globe and Mail notes that the average Canadian household has almost four times as much equity in their real estate when compared to their American counterparts.
The Globe and Mail also notes that the average American household is still ahead of their Canadian counterparts when it comes to total liquid assets on hand.
The big question is - will this net worth trend continue into the future, or will the Canadian real estate market finally cool off and/or the US real estate market finally stabilize and start moving higher?
Source: The Globe and Mail
Filed under: General Knowledge