The average household net worth of Canadians has topped $400,000, having risen 5.8 per cent during the year ending December 31, 2012, according to the WealthScapes 2013 financial database released by Environics Analytics.

This year the average Canadian household is richer than the average American household by $19,066, or 5 per cent. This gap has, however, “narrowed considerably” over the past year, the firm said.

While many Canadians still face “higher-than-normal” unemployment, the firm believes the figures are a sign of recovery since the 2008 economic downturn. Stock portfolios are growing, the value of real estate is increasing and household debt has ticked up “only modestly,” it said.

Vancouver, Calgary and Toronto still the wealthiest cities

Particularly striking is how close Canada’s three wealthiest cities are in terms of household net worth - all within 7.2 per cent of each other, the firm said. Distinguishing them from other cities in Canada is the fact that, according to the data, the average household in these three cities has about a half-million dollars’ worth of real estate holdings.

With $662,600 per household, Vancouver is the city with the highest net worth, while Calgary, with the most debt of any major city, ranks second in net worth with $620,607 per household.

Toronto, with $617,846 in net worth, is Canada’s most populous city and experienced a 5 per cent decline in consumer (non-mortgage) debt, which the firm noted was the largest drop of any major city. The city also logged a 6.3 per cent rise in savings per household.

Toronto reported the third highest growth in net worth among big cities, increasing 9.4 per cent. This, the firm said, is down to three factors: a gain in liquid assets (up 7.7 per cent), strong real estate growth (up 8.2 per cent) and low debt growth (only 2.9 per cent).

“It takes a lot for the largest city in the country to rapidly increase in net worth, so that’s big news for Toronto,” said Peter Miron, a senior research associate at Environics Analytics and lead developer of WealthScapes 2013. “And Hamilton is experiencing a renaissance. It used to be a tough steel town but it is increasingly becoming known as a city of cafes and art galleries.”

Other notable findings

In terms of growth rates, Regina experienced the greatest increase in net worth during the last year, jumping 11.2 per cent to $391,826. This was fueled by strong growth in real estate holdings among cities (10.6 per cent increase to $317,029) and a fast rise in liquid assets - 10.3 per cent to $206,416 - behind Saskatoon and Halifax.

Meanwhile, Montreal and Ottawa “failed to make the wealthiest list for different reasons;” Montreal’s net worth grew at a slightly below-average 4.7 per cent (to $315,957), primarily due to households taking on more debt. Liquid assets and real estate values both grew at average levels.

In Ottawa-Gatineau, net worth grew at a slightly above-average level of 6 per cent to $393,556, driven by a low 1 per cent rise in debt. However, this was set back by a below-average increase in liquid assets of 3.1 per cent to $199,329.

“Nevertheless, both cities stand close to national averages in terms of their financial fortunes,” the firm said.

Quebec City, with an average household net worth of $250,058, traditionally ranks as the least affluent of Canada’s ten largest cities – an observation consistent with the latest data. It posted the largest rise in household debt of any major city (7.6 per cent to $80,830), as household savings declined 2.3 per cent to $58,169. Net worth grew at a below-average 4.6 per cent.

The data on Canadian net worth was calculated by combining the total value of liquid and real estate assets minus debt.