TORONTO, ON - WealthScapes 2010, the latest edition of Environics Analytics' comprehensive financial database measuring the assets, liabilities and wealth of Canadians, reveals that Vancouver has retained its net worth, Toronto is the second wealthiest city, and Calgary remains king of cash and debt.
The financial and investment statistics in the study include average net worth, income distribution, disposable and discretionary income, savings by type, investments by type (stocks, bonds, GICs and mutual funds), RRSP components of investments, mortgages, loans, lines of credit and credit card accounts. It also offers historical data from the previous year.
Findings WealthScapes 2010 include:
VANCOUVER - Between 2008 and 2009, Vancouver kept its title as the city with the highest net worth in Canada ($572,988). But it was also the worst performing in terms of growth among large Canadian cities (pop. 200,000+). Its net worth grew at a rate (3.1%) one-third less than the 4.6% national average. Other city data: 11.3% increase in savings; 15.2% increase in conservative bank deposits; real estate values declined 0.6%; and household debt increased by 6.4% to $158,372, a level second only to Calgary.
TORONTO: The real estate holdings of Torontonians increased by 2.3%, making the city's average household net worth $531,621 compared to Calgary's (last year's #2 city) $526,534.
CALGARY: Calgary has the highest amount of liquid assets per household--$344,989 (Toronto and Vancouver both have 17% less), as well as the highest level of debt per household, $184,850. The city has the lowest proportion of savings held in bank deposits and bonds: 29.4% of all liquid assets. Its citizens also have the greatest fondness for risk as illustrated by a 13.7% rise in investments.
QUEBEC CITY: With an average household net worth of $212,078, Quebec City traditionally ranks as the least affluent of Canada's ten largest cities. However, its net worth grew by 10.3% between 2008 and 2009, a rate that was faster than any other major city and ahead of the 4.6% national average. 2009 saw a real estate boom in the city, with real estate values jumping 7.9%.
OTTAWA: The nation's capital overtook Edmonton to become the eighth wealthiest city among those with more than 200,000 people, in part due to a rise in housing prices.
PROVINCIAL RANKINGS: British Columbia still ranks as the wealthiest province, with an average net worth of $489,812. Alberta households have the number two spot with their average net worth of $415,712. Ontario is ranked third with an average net worth of $403,194 (3% below Alberta's).
PUTTING FINANCIAL HOUSES IN ORDER: While Canadian households tend to be debt-averse, in the years leading up to the 2008 slowdown, they increased their debt load by 10.2% annually. However, in 2009, thanks in part to historically low interest rates, Canadian households increased their debt load a modest 5.7%. Ontario and Nova Scotia in particular started reigning in their debt loads, with modest increases of 4.8% and 4.6% respectively.
INVESTMENT RESPONSE TO DOWNTURN - Not Much: Despite the 2008 market collapse, WealthScapes 2010 data show that Canadians didn't change their investment strategies dramatically. Saskatchewan and Newfoundland households chose to save a little more than other provinces (increases in liquid assets of 11.9% and 7.4% respectively). Alberta households continued to favour riskier investment vehicles such as stocks and mutual funds (69% of their portfolios) while Newfoundlanders saved more conservatively, with 55.9% of their portfolios holding relatively safe bank desposits and bonds. Ontario households increasingly placed their savings in traditionally safe short- and medium-term bank deposits, up 7.8% to $90,312 per household--the highest holdings in Canada.
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