Income growth is tepid, according to new data from Canada’s national statistics agency. Statistics Canada (Stat Can) data shows the median after-tax income of families and unattached individuals was nearly flat in 2018. That’s not incredibly surprising, however drilling down there’s some interesting details. Most notable to us – the pricey real estate markets of Toronto and Vancouver are seeing strong declines in income.
Canadian After-Tax Incomes “Virtually Unchanged”
Canadian households are seeing a few extra bucks in their pocket, but not enough to move the needle. The median after-tax income of Canadian families and unattached individuals reached $61,400 in 2018. This is a 0.82% increase compared to the year before, which Stat Can called “virtually unchanged.” The increase is substantially lower than the one seen in 2017 – the highest since 2001. It’s been a long time since the country saw an increase that large, and it’s probably going to be a while until the next one.
Canadian Median After-Tax Income Change
The percent change of income in median after-tax income of families and unattached individuals for 2018.
Source: Stat Can, Better Dwelling.
The two provinces on the polar end of the growth stat are PEI and BC. PEI made the biggest increase to a median after-tax income of $57,100 in 2018, up 4.39% from a year before. BC made the biggest drop to $62,000, down 2.36% from a year before.
Toronto Incomes Are Dropping, While The Rest of Ontario Rises
Toronto’s median after-tax income is declining, bucking Ontario’s trend. Toronto’s median after tax income fell to $68,600 in 2018, down 2.97% from a year before. Not the case for the province, which saw the median rise to $66,200, up 3.28% from a year before. Toronto made the biggest increase in over 30 years in 2018, which softens the roll back. Ontario’s increase is a little lower than 2017’s increase, which was the highest since 1999.
Toronto Median After-Tax Income Change
The percent change of income in median after-tax income of families and unattached individuals for Toronto, and the Province of Ontario.
Source: Stat Can, Better Dwelling.
Vancouver Incomes Drop Almost 2x The Provincial Median
Incomes in Vancouver are dropping nearly twice as fast as all of BC. Vancouver’s median after-tax income fell to $64,000 in 2018, down 4.48% from a year before. The province of BC as a whole saw the median fall to $62,000, down 2.36% from a year before. Both Vancouver, and the province made the biggest decline since the Great Recession.
Vancouver Median After-Tax Income Change
The percent change of income in median after-tax income of families and unattached individuals for Vancouver, and the Province of British Columbia.
Source: Stat Can, Better Dwelling.
Montreal Incomes Rise Faster Than The National Increase
Montreal incomes are rising fast, while the province as a whole is a little faster than the national rise. Montreal’s median after-tax income reached $54,900 in 2018, up 3.58% from a year before. The province of Quebec as a whole reached $53,200, up 0.95% from a year before. Montreal’s median income increased at the highest rate since 2012. The province as a whole saw the weakest movement since 2015.
Montreal Median After-Tax Income Change
The percent change of income in median after-tax income of families and unattached individuals for Montreal, and the Province of Quebec.
Source: Stat Can, Better Dwelling.
Household incomes made very little movement from a year before, on a national level. Drilling down we see more interesting movements – especially in large real estate markets. Toronto and Vancouver both saw further detachment of incomes to home prices. Montreal, home to some of the fastest income growth in the country, is seeing real estate prices rise together.
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The magic of Vancouver’s money laundering.
How much of that income spike in 2017 was because everyone was buying and selling condo pre-sales? 😂
Working for free is the new minimum wage in Toronto. Thousands of university and college graduates are conned into working as unpaid interns, and then laid off after 6 months of working for free. They do not even get a “job” reference for a paid position. What a scam to go into tens of thousands of dollars in debt to work for free.
that’s such a bs analysis? no where you mentioned that this includes senior household, lone parent household, non-economic family unit etc…
if you actually want to be genuine with your readers. why not mention that the two-person family has AN AFTER TAX INCOME OVER 100K. that’s the median.
these are the people actually buying stuff
Ah yes, your analysis based on an assumption of median incomes on Stat Can’s data that doesn’t break it down into that demographic ms really on point.
You know you’re not proving anyone wrong? You’re just making the rest of our industry seem like we don’t know what we’re talking about.
????? I am simply stating a figure from stats can release.
median income for two income family household is over 100k after tax. am pretty happy to see this country doing better and better
This site is the opposite of greaterfool. Catering to the housing bear crowd. I visit both because its entertaining.
Not surprising. Record breaking mass immigration is suppressing wages.
Young Canadians sacrificed to prop up the Boomers’ real estate values.