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The Average Canadian is Now Richer than the Average American

Watch out, Americans: Your thrifty, socialist neighbors to the north have stealthily become richer than you.

Over the past five years, the average net worth of Canadian households has exceeded that of American households.  So for the the first time in history, Canadians are wealthier than Americans — by more than $40,000, on average. In 2011, the average net worth of a Canadian household was $363,202, compared to $319,970 in the U.S., according to Environics Analytics WealthScapes data published in the Globe and Mail. (‘Average net worth’ measures the total combined value of a household’s liquid and real estate assets, minus debt.)

The figure takes into account the relative weakness of the U.S. economy right now, as well as the recent strength of the Canadian dollar, which is now almost on par with the U.S. dollar, the Globe and Mail points out. These figures also ignore public-sector debt, which accounts for a higher proportion of GDP in the U.S than in Canada. And according to the latest jobs numbers, Canada’s unemployment rate fell to 7.2%, while the United States’ remained stagnant at 8.2%.

The major reasons for Canada’s economic triumph over its neighbor to the south, it seems, are rooted in the 2008 recession that rocked the United States’ economy and collapsed its housing market. American house prices plunged, and now Canadian real estate holds more value. And that’s not even taking into account the recent spike in Justin Bieber-inspired tourism.

Source: Time.com

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4 thoughts on “The Average Canadian is Now Richer than the Average American

  1. Allan Ashby says:

    This is one statistic that doesn't say as much as it seems to.
    The vast majority of people have their homes as their primary form of 'wealth.'' A bust in the mortgage industry would of necessity lower that wealth — especially compared to a country that didn't have one.

  2. I agree, Allan. My primary form of wealth is my townhouse and that isnt much…lol

  3. …and why did Canada NOT have a "bust in the mortgage industry"?? Intelligent government regulation.

  4. Ed Warburton says:

    average means nothing. Median is what tells the story. If my neighbor has a net worth of 900K and I have a net worth of 100k, our average net worth is 500K. a worthless number as neither of us has a net worth of 500k.

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