Equities Surpass Real Estate as Canadians' Wealth Shifts

Household wealth in Canada and the US has hit record highs, but the composition of that wealth is changing. In both countries, equities or stock market investments have surpassed real estate as the largest component of household assets.

In the US, equities now make up 35% of total household wealth, surpassing real estate's share for the first time. In Canada, equities account for 32% of household wealth, a six percentage point increase from 2010.

For Canadian households, real estate remains the biggest share of wealth, but it is losing ground. Real estate peaked at 52% in 2012 but has steadily declined to 46% as home prices fell.

The changing composition of household wealth affects consumer spending and the economy through the 'wealth effect'. When portfolios swell, people spend more and save less, which can boost economic growth.