Household net worth up $1.2 trillion in 2024: StatCan

Canadian households enjoyed a 1.4% rise in net worth during the final quarter of 2024, according to data released today by Statistics Canada. Asset values, minus liabilities, climbed $236.3 billion.

The country went four for four last year, with increases in each quarter. By year-end, balance sheets were up $1.2 trillion relative to the end of 2023. The figure landed just shy of $17.5 trillion.

Financial assets held by Canadian households rose 2% to $10.8 trillion at the end of 2024. That’s the fifth consecutive end-of-quarter record. By comparison, Canada’s main stock index, the S&P/TSX composite delivered a 3% return in Q4. A weakening loonie added value to those holding investments outside the country.

Financial liabilities rose 1.2% or $35.8 billion in the fourth quarter.

Non-financial assets ended the year at $9.8 trillion, mostly as a result of rising real estate values. There was a 0.6% gain in the fourth quarter, following a slide the previous quarter.

Investment activity solid

Net investment in mutual fund shares hit $107.6 billion last year. That’s the highest number reported by Statistics Canada since 2021. The fourth quarter was particularly strong — mutual fund inflows reached $52.6 billion, more than twice the $24.1 billion recorded in during Q3.

The household saving rate slipped from a three-year high of 7.3% in the third quarter to 6.1% in the year’s final quarter. Spending increased 2.1% in the fourth quarter, against a 1.1% rise in disposable income.

After sliding 1.1% over the second and third quarters, the value of residential real estate holdings rebounded 0.6% in the fourth quarter to $8.4 trillion. The number of home resales in Q4 jumped 9.5% on a seasonally adjusted basis, relative to Q3. Total resale values ended the year 8.5% higher than 2023, primarily as a result of an uptick in closings.

Household credit market borrowing — again, seasonally adjusted — rose to $40 billion in the fourth quarter. Credit market debt, including consumer credit, mortgage and non-mortgage loans, was up 1.3% in the fourth quarter, reaching more than $3 trillion for the first time.

The household debt service ratio — total obligated payments of principal plus interest on credit market debt presented as a proportion of disposable income — ended 2024 at 14.4%. That’s down from 15.1% at the end of 2023. It was the largest annual decline reported by Statistics Canada since 2020.

Kevin Press

Kevin Press is editorial director for Advisor.ca. He has been writing about money since 1997. Reach him at kevin@newcom.ca.