Canadian Household Net Worth Surges to Highest Gain Since Early 2024 Amid Market Rally

Canadian households saw their net worth grow by 3.2% in the final quarter of 2024, the most significant quarterly increase since the first quarter of 2024, according to data compiled from national financial surveys and asset valuation reports. The surge was fueled by a rebound in financial markets, with the S&P/TSX Composite Index gaining 11.7% over the period, and continued strength in residential real estate, where home prices rose an average of 5.4% year-over-year in major urban centers. The rise in household wealth was underpinned by a 14.3% increase in portfolio values, particularly in equities and mutual funds, as investors returned to risk assets following a period of volatility in the prior year. Fixed-income holdings also contributed, with yield adjustments supporting bond valuations. Meanwhile, the value of residential property, a key component of household assets, rose by $198 billion during the quarter, accounting for nearly 60% of the total net worth increase. This uptick in net worth has broad implications for consumer spending and economic confidence. With household wealth now approaching $14.8 trillion, the aggregate financial buffer has strengthened, potentially supporting sustained demand in retail, housing, and durable goods sectors. Financial institutions are noting a corresponding rise in loan applications and investment product inquiries, indicating a shift toward wealth deployment. The gains are concentrated in provinces with higher property values, including British Columbia and Ontario, where real estate appreciation accounted for over 70% of the regional net worth growth. In contrast, Prairie provinces saw more modest increases, reflecting slower housing market dynamics and lower equity exposure.