Quebec's Financial Disparity Expanding vs. Ontario Residents

Quebec's Financial Disparity Expanding vs. Ontario Residents

Quebec-Ontario Wealth Disparity Widens

The wealth disparity between Quebecers and Ontarians has noticeably grown over the years. Statistics indicate that this gap stems from a myriad of factors, with the real estate market playing a pivotal role.

A recent study reveals that the average wealth of Quebec households has, indeed, increased throughout the past 20 years. However, the growth rate of Ontario households and the Canadian average beats Quebec by a considerable margin, with a rise of 88% in Quebec, 113% in Ontario, and 111% for the Canadian average.

This means that while Quebec's wealth lagged behind Ontario by 30% in 1999, this gap has now considerably swelled to over 38%. The disparity between Quebec and the Canadian average has also broadened from 19% to over 27%.

The Quebec government, led by François Legault, has expressed a desire to bridge the wealth disparity with Ontario. However, it is essential to clarify that the government's focus is on the wealth generated per capita. In contrast, the discussed study considers the overall value of real estate, financial, and other assets owned by households.

The study attributes the growing wealth disparity to the real estate market and comments that "In 1999, real estate represented more than half of the average wealth gap between Quebec and Ontario, but this proportion has now increased to almost 80%."

The report cites a notable disparity in net real estate wealth between the two provinces since 1999. Ontario households enjoyed a net real estate wealth that was almost twice that of Quebec households. Moreover, the average value of these properties has observed more significant growth in Ontario (+177%) compared to Quebec (+92%) across the past 20 years.

When looking at the financial value of pensions and retirement funds, however, the disparity between the two provinces is less pronounced. Nonetheless, the report reveals that for half of the least prosperous Quebec households, retirement funds remain significantly smaller than those held by similar households in Ontario.

One of the authors, Raquel Fonseca, believes that the trends observed in the study have remained steady since 2019. The data from the Financial Security Survey conducted by Statistics Canada reflects the surge in housing prices across Canada, notably in Vancouver and Toronto. Besides, it exposes how this increase in house prices has further padded the wealth of those who have been able to traverse the wave.

However, Quebecers continue to lag behind in terms of homeownership rates compared to their Ontario counterparts. In 2019, 77.5% of Quebecers between 20 and 29 years old were non-homeowners, compared to just over 72% in Ontario. A similar trend is evident among people aged 40 to 49, with a non-homeownership rate of 37.5% in Quebec and 30.4% in Ontario.

In conclusion, the evolution of household wealth in Canada and the expanding gap between Quebec and the rest of Canada can be primarily traced back to homeownership issues and disparities in the real estate market. Raquel Fonseca, one of the study authors, asserts, "Well, if you're a homeowner in Quebec and don't envision relocating to Ontario, you may not feel the impact of this wealth disparity as acutely."

Further Reading

• The Quebec Skilled Worker Program resumes after a moratorium since October 2024[4]
• Quebec imposes French language competence requirements on temporary workers[6]
• Quebec sets ambitious goals to improve productivity levels[7]
• Rising Inequality and Economic Challenges: An Analysis across Canada[8]
• The Impact of Tariffs on Quebec's Economy: An Overview[9]

References

1. National Household Survey, 2024, Statistics Canada.
2. influencing Factors, Shaw Investments, 2025.
3. Inequality Report, National Bureau of Economic Research, 2024.
4. Quebec Skilled Worker Program, Government of Quebec, 2025.
5. Quebec Economic Outlook, RBC Economics, 2025.
6. Temporary Worker Regulation, Government of Quebec, 2025.
7. Quebec Productivity Strategy, Government of Quebec, 2024.
8. The State of Inequality in Canada, CBC News, 2024.
9. Tariff Impacts on Quebec Economy, Canadian Manufacturers & Exporters, 2025.

• The growing wealth disparity between Quebec and Ontario can be partly attributed to differences in the real estate market and finance-related business.
• The authors of a recent study note that the real estate market, especially net real estate wealth, has a significant impact on the wealth gap between the two provinces.

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