It turns out, we have yet another thing to brag about to our friends south of the border.
Canadian millennials are twice as wealthy as American ones (despite the high amount of ‘mericans you see on “Rich Kids of Instagram”).
A new study from TD Bank looked at Canadians and Americans born between 1980 and 2000 and found things were considerably better economically in our home and native land.
TD economists Beata Caranci and Diana Petramala found that Canadian millennials have twice the net worth of their US counterparts, enjoy a significantly lower unemployment rate, and are much likelier to own their own home. Shockingly, given our ever-rising and increasingly unattainable housing costs in cities like Toronto and Vancouver, more than 50 per cent of Canadian millennials own their own home.
Believe it or not, this is actually a near record rate, and a higher rate than our parents enjoyed a generation ago, according to the study.
On the other side of the border, only 36 per cent of millennials in the US under the age of 35 were homeowners. This figure fell below the long-term average of 40 to 43 per cent after the housing bust of the last decade.
That means Canadian millennials have a net worth that’s actually more than double that of our American counterparts — an average of C$155,400 for Canadians, compared to US$75,500 for Americans. That figure is also double what Canadian millennials’ parents were worth a generation ago, according to the study.
There is, however, a bit of a “but.”
The Canadian millennials’ higher net worth is largely a result of high house prices. Meaning, with that high net worth comes a large mortgage dept. Subsequently, the study says that Canadian millennials are “more vulnerable in the event of a home price correction.”
Granted, the average Canadian millennial had a mortgage balance of $210,000 (CAD) in 2013, compared to an average balance in the US of $142,000 (USD). The silver lining, though, is that the rising housing prices have made millennials’ parents wealthier, allowing them to help out their kids a little more (should their kids be so fortunate).
Finally – not surprisingly given the sky-high tuition costs in the US – the study found that Canadian millennials have much less student debt, with an average of $16,400 (CAD) in 2013, compared to $27,000 (USD) in the States.
So, yeah, despite the constant bombardment of money-drenched American millennials like the Kardashians (who just won’t go away), we Canadians are actually doing just fine.