Housing boom a boon for Canada’s poorest

Lower-income families benefited more than the richest households

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From the September/October 2015 issue of the magazine.

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Finally, some encouraging news for the little guy: while the latest StatsCan data shows the income gap between Canada’s poorest and richest widened slightly between 1999 and 2012, lower-income families benefited more from the housing boom. During that period, real estate’s share of total wealth rose to 57% from 46% for households in the bottom 20% income bracket, compared with just a six percentage point rise to 40% for those in the highest-earning quintile.

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Sources: Changes in wealth across the income distribution, 1999 to 2012, Statistics Canada; Canada’s Wealth Distribution Barely Moves, Moody’s Analytics Research, Adam Goldin.

 

2 comments on “Housing boom a boon for Canada’s poorest

  1. It’s an interesting take but misses one thing. When I bought my house I could afford the property tax. It’s nice that my house has increased in value but my property tax has doubled in the same period. I guarantee you that my salary has not. I will be selling next summer because I cannot afford to live in my neighbourhood anymore. I will make a profit, but what good will that do me when I can’t afford to actually own anymore?

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  2. Let me get this straight, you are celebrating the fact that poor people now have proportionately more of their assets in a highly non-liquid asset, instead if being able to distribute that to other asset classes that would lessen their risk?

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