Latest Economic Downturn Takes a Hit on Calgary’s Average Household Income
Back in 2010, Avenue Magazine’s May edition reported that there were 215.8 millionaires in Calgary for every 100,000 people.
At the time, this was the highest concentration in Canada. Toronto came in a distant second at 97.7 millionaires per 100,000 people. But things have changed drastically since then.
In 2013, the number of millionaires per capita in Calgary dropped to 157.6 per 100,000, and with the economic turmoil that has followed since 2014, we can expect that number to have dropped even further.
While Toronto also dropped to 84.1 millionaires per 100,000 in 2013, the percentage comparison between itself and Calgary’s losses was much less. But what about average household incomes?
Canada’s “Millionaire” City
More recently, a report released by Environics Analytics has found Vancouver to be our nation’s “millionaire city” with the highest average household net worth across Canada, ousting Toronto in 2016 for the top spot.
So just how high is Vancouver’s average household net worth? At $1.023 million, this figure has increased substantially over the past year (July 2015 – August 2016) by 7 percent to sit $50,000 higher than Toronto and $120,000 higher than Calgary. Research points towards Vancouver’s soaring housing prices as the main contributor to its growth.
Calgary sits in fourth place on this list for 2016, but anyone who is familiar with the economic hardships the province is currently experiencing would most likely not second guess it. On a positive note, however, Alberta does have less low income families than other Canadian provinces.
Currently our province has the highest unemployment rate ever seen with scarce job opportunities for a variety of reasons, one of the main ones being low prices for raw petroleum.
A few average household net worth estimates for some of Canada’s most populous cities:
- #1 – Vancouver – $1.023 million
- #2 – Toronto – $962,993
- #3 – Victoria – $912,362
- #4 – Calgary – $898,240
Canada as a Whole
Canada’s average household net worth grew 4.3 percent over the past year (July 2016 – August 2015) to $680,098.
At more than $200,000 higher than the national average, Calgary isn’t doing so bad you could say, but we have a long way to go to reclaim what has been lost alongside low energy prices.
Maybe in several years when energy prices are high and things are booming, we will climb our way back to the top with 200+ millionaires per 100,000. Let’s hope that things turn around soon!
See more relevant articles concerning Calgary, Alberta and Western Canadian Economics today.
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