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I am astonished to learn that (2012 data) Canadian renters have nearly 20 times the net worth of US renters - about $120K (~$95K USD) vs ~5K. FWIW, Canadian homeowners are about 4 times as wealthy as US homeowners.
How did Canadian renters get so wealthy relative to US renters?
So this chart cited is showing household wealth, not individual, and I assume in Canadian dollars.
Australian figures, in Australian dollars which are pretty well equivalent to Canadian are:
Average wealth of renting households, $199 000
Average wealth of households with mortgages $981 O00
Average wealth of outright home owners $1,600,000
It seems that in Canada, and also in Australia there is a capital gains tax exemption on principle place of residence. I do not know if that is the case in the US. It obviously encourages investment in homes and has helped to push values in Sydney and Vancouver to be amongst the highest in the world. Here in Sydney an old house perhaps 6 miles out of the city centre, no parking and needing renovation will sell for upwards of $2 million.
I do not know whether this applies in either Canada or the US but here we have negative gearing, where losses from real estate investment properties can be used to offset other income. This has encouraged people to invest in rental properties. We also have a fifty percent exemption on capital gains tax for rental properties owned more than a year. Anything purchased pre to 1985 is capital gains tax free. We also do not have any inheritance nor gift tax. All of these things have encouraged investment in property.
Also, the figures quoted are all average, not median, which would be a lot lower.
My guess would be because of population density. I’ve seen statistics that suggest 90 percent of Canadians live within 100 miles of the American border, and in particular most of that in jammed into Vancouver (one of the most expensive cities in the world) and mirroring the American northeast corridor. I would imagine this pushes up prices.
My guess would be because of population density. I’ve seen statistics that suggest 90 percent of Canadians live within 100 miles of the American border, and in particular most of that in jammed into Vancouver (one of the most expensive cities in the world) and mirroring the American northeast corridor. I would imagine this pushes up prices.
And that makes Canadian renters wealthier than American renters how?
Vancouver is the LA/SF/NY/Seattle of Canada. Not to mention one of the most expensive cities to live in. Not too many minimum wage renters. Not to mention that it is 2018. Not to mention that it is household income.
I am astonished to learn that (2012 data) Canadian renters have nearly 20 times the net worth of US renters - about $120K (~$95K USD) vs ~5K. FWIW, Canadian homeowners are about 4 times as wealthy as US homeowners.
How did Canadian renters get so wealthy relative to US renters?
The number you quote is specifically for Vancouver and not all of Canada. In Vancouver real estate is VERY expensive and many people, despite having good incomes, still aren't in a position to buy or choose not to. Instead of spending their disposable income, they're saving it.
You can't take the numbers from a single city in Canada and one with good paying jobs to boot and interpret the resulting numbers as "Canadian renters are so much more wealthier than US renters". They (Canadian renters) may be as a whole, but this link doesn't say that.
The number you quote is specifically for Vancouver and not all of Canada. In Vancouver real estate is VERY expensive and many people, despite having good incomes, still aren't in a position to buy or choose not to. Instead of spending their disposable income, they're saving it.
You can't take the numbers from a single city in Canada and one with good paying jobs to boot and interpret the resulting numbers as "Canadian renters are so much more wealthier than US renters". They (Canadian renters) may be as a whole, but this link doesn't say that.
My sister's house in Vancouver is worth $3 million. If she sold it, they'd scrape it off the lot and replace it with a brand new house with the same square footage. Anybody who owns a house in Vancouver is wealthy on paper. Prices doubled in the last 3 or 4 years.
If you didn't buy years ago, you're shut out of the real estate market and have to rent unless you want a soul-crushing commute. So an awful lot of high income people are renting who would typically own homes in a more sane real estate market. It's not surprising at all that Vancouver has very high median household net worth for renters compared to most places in North America.
I am astonished to learn that (2012 data) Canadian renters have nearly 20 times the net worth of US renters - about $120K (~$95K USD) vs ~5K. FWIW, Canadian homeowners are about 4 times as wealthy as US homeowners.
How did Canadian renters get so wealthy relative to US renters?
because renting doesn't make people poor...
same reason why Germans and French prefer renting
if a renter is poor, they would be poor no matter their housing situation
if a renter is poor, they would be poor no matter their housing situation
Absolutely. This misconception of renters has always bugged me.
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