The average Canadian household’s net worth surpassed $1 million in 2025, marking a 37% increase from 2019. However, regional disparities reveal that some households remain financially fragile despite the headline wealth gains.
Regional Differences in Financial Resilience
“Household balance sheets often look reassuring in the aggregate, and in 2025, Canada’s headline numbers delivered,” said Maria Solovieva, an economist at TD Economics, in a report on June 9. “However, important regional differences reveal nuances in the level of financial resilience.”
Household net worth in British Columbia, Ontario, and Alberta reached $1.34 million, $1.27 million, and $1.02 million, respectively. Yet, from a vulnerability perspective, Ontario stands out as the most leveraged province, given its highest household-debt-to-disposable-income ratio.
Debt Ratios and Income Growth
Debt ratios in B.C. and Alberta have fallen significantly since the pandemic, and declines occurred in all provinces except Prince Edward Island. “Higher (debt-to-income) ratios signal greater sensitivity to interest rates and less capacity to absorb shocks,” Solovieva noted.
Ontario’s financial vulnerability stems from weak income growth in 2025, which hindered debt reduction despite slower leverage growth due to higher interest rates and a slumping housing market. In the first quarter of 2026, Ontario wages grew just 0.8% from the previous quarter, the second-lowest after Quebec, compared to B.C.’s 2% increase, according to Statistics Canada.
Housing Market and Debt Dynamics
Before the pandemic, B.C. had the highest household-debt-to-income ratio among provinces, but slower borrowing in recent years has eased debt levels. In the West, lower home prices have helped contain debt growth, with Saskatchewan seeing the slowest price growth, while Alberta and Manitoba experienced growth “well below” the national average.
Financial Markets Drive Wealth Gains
Red-hot financial markets drove most household wealth gains in 2025, as real estate—the previous driver—slumped. Solovieva estimated average stock market gains of 8.8% to 10.3% last year, with some households using these windfalls to bridge income gaps. In Ontario, despite lagging disposable income gains, spending remained near the national average, supported by stock market returns close to the national average.
Conversely, P.E.I. and Alberta households saw decent wage gains but weaker financial asset gains in 2025, leading to lower spending relative to disposable income compared to the national average.
