Gap between rich and poor widens: StatsCan
Last Updated: Wednesday, December 13, 2006 | 10:57 AM ET
CBC News
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Rising home values are behind much of the widening gap between Canada's wealthier citizens and its poorest, Statistics Canada said Wednesday.
Those with a net worth that places them in the top 20 per cent saw their wealth grow by 19 per cent between 1999 and 2005, while those in the bottom 20 per cent gained no ground at all.
The median net worth of the country's top fifth came to $551,000 last year. It was $465,000 in 1999 and $336,000 in 1984.
The surging price of housing explains much of the increase. Most of those (95 per cent) in the top 20 per cent bracket owned a home, and the median value of that home grew by $75,000 between 1999 and 2005. Only six per cent of those in the lowest wealth group owned a home.
Statistics Canada said the median net worth of the poorest group has stagnated over the past two decades. "The value of their assets never exceeded the value of their debts during the 1984 to 2005 period," the agency said.
Of the total household wealth in Canada in 2005, the top 20 per cent possessed 75 per cent of it.
"When compared to the degree of inequality for income, it is clear that wealth is much more highly concentrated among a smaller proportion of the population," TD Bank chief economist Don Drummond wrote in an analysis.
"What is even a greater concern is that there is a significant portion of the population with little wealth or who carry more debt than assets, resulting in negative net worth."
Last week, Statistics Canada's Survey of Financial Security showed that Canadian families dramatically increased their net worth between 1999 and 2005, but also took on more debt too.
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