Here is an interesting tidbit of information fresh out of the Globe and Mail. The Canadian cities with the highest increase in household net worth are our mid size cities, including Quebec City, Halifax, Hamilton and Saskatoon.
The above mention medium sized urban areas experienced an increase of almost ten per cent last year. Also a reason to consider packing your bags and moving out of your giant city (or small town) is that debt loads are recorded as being well managed and personal investments are growing in these mid-sized cities.
So if you do happen to live in Toronto or Vancouver, how did your city fair? Well, household net worth up is but at a rate that is well below the national average. With that said, however, how much room for growth can Vancouver really have if it already holds the title of the Canadian city with the highest net worth?
Turning our attention to Calgary, we will find that although their average income is very high, almost $25,000 higher than other Canadian cities, it is offset by the even higher average level of household debt which is also almost $25,000 higher than Vancouver, and much higher than other cities. This can be attributed to the spending behaviours of Calgarians last year. Their behaviour was very much in line with what would normally be found in an economic upswing, which was definitely not what we were facing last year. Canadians on the whole, however, were cautious about their investments.
Of course, looking at national averages is much different than looking at individual situations. Where does your household net worth land on your comfort level scale? Depending on your income vs. debt, it may be time to consider a home equity loan or debt consolidation as opposed to high interest loans or credit card rates. Talk to an expert to ensure you are living, or on your way to living, the highest quality of financial life.
