Fact Sheet Calgary Wealth - Calgary Economic Development

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2015. In 2015, Calgary had the highest number of millionaires in Canada (persons reporting personal income ..... The med
Fact Sheet Calgary Wealth C A LG A R Y C E N S U S M E T R O P O L I TA N A R E A ( C M A ) 2017 E D I T I O N R E S E A R C H & S T R AT E G Y P U B L I S H E D : F E B R U A RY 2 0 1 8

From personal income to investments, Calgary is Canada’s leader in earnings and financial management. This fact sheet provides analysis of wealth distribution across Canada. Topics include: millionaires, personal income per capita, wages and salaries, household income, financial security and calculated financial assets (CFA).

The number of Calgary millionaires has steadily increased since 2009, with 3,230 millionaires in 2015. In 2015, Calgary had the highest number of millionaires in Canada (persons reporting personal income of $1 Million+), on a per capita basis, at 225.3 per 100,000 population. Calgary’s 10-year total growth (2006-2015) in millionaires per capita is 42.9 per cent.

Millionaires

In 2015, Calgary millionaires reported a median income of $1,568,280, placing third among Canada’s major Census Metropolitan Areas (CMAs).

Data for millionaires in Canada is derived from income reports of tax filers, with 2015 the most recent available.

Number of Millionaires Calgary CMA 3,230

3,500

3,000

2,000 2012

2,480

2,140

1,960

1,795

1,715

2011

870

1,000

1,165

1,500

500

2,385

1,780

2,000

2,480

2,260

2,500

2015

2014

2013

2010

2009

2008

2007

2006

2005

2004

2003

0

Data released on a 2 year lag to current year. Source: Statistics Canada, 2015, Per 100,000 Population

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Millionaires Per Capita

250

225.3

200 176.9 158.1

150 115.5

107.9

100

84.1 61.0

64.6

89.5

64.7 65.5

53.6

50 21.5 20.5

0

Vancouver

Edmonton

Calgary

2013 Millionaires Per Capita (per 100,000 population)

Toronto

27.8

Ottawa

32.9

38.8

45.7

Montreal

56.3 40.7 42.8

Canada

2014 Millionaires Per Capita (per 100,000 population)

2015 Millionaires Per Capita (per 100,000 population) Data released on a 2 year lag to current year. Source: Statistics Canada, 2015, Per 100,000 Population

Number of Millionaires 10-Year Growth (2006-2015) 100% 86.9%

90% 80% 70% 60%

51.6% 50%

42.9%

40% 30% 20%

35.2%

34.5% 24.8%

21.3%

10% 0%

Vancouver

Edmonton

Calgary

Toronto

Ottawa

Montreal

Canada

Data released on a 2 year lag to current year. Source: Statistics Canada, 2015, Per 100,000 Population

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Millionaires Median Income (2015) $1,700,000 $1,661,780 $1,650,000 $1,627,960

$1,600,000 $1,568,280 $1,550,000

$1,551,590

$1,543,710

$1,542,640

$1,498,170

$1,500,000

$1,450,000

$1,400,000

Vancouver

Edmonton

Calgary

Toronto

Ottawa

Montreal

Canada

Data released on a 2 year lag to current year. Source: Statistics Canada, 2015, Per 100,000 Population

Millionaires Observation Counts Trend 7,000

6,000

5,000

4,000

3,000

2,000

1,000

Vancouver

Edmonton

Calgary

Toronto

Ottawa

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

0

Montreal

Data released on a 2 year lag to current year. Source: Statistics Canada, 2015, Per 100,000 Population

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Personal Income Per Capita Personal income is the sum of all revenue (wages, dividends, self-employment, etc.) received in a year. In 2017, Calgary had the highest personal income per capita of Canada’s major Census Metropolitan Areas at $64,098 and has maintained this ranking for well over a decade. Calgary’s 2017 growth rate in personal income per capita was 1.9 per cent. Calgary’s total annual growth in personal income per capita over the past 10 years is 17.2 per cent (2013-2017).

Skilled workforce. Calgary has the highest labour force participation rate and labour productivity of major cities in Canada. Calgary is ranked in the top 10 most attractive cities in the world for workers. Calgary has the highest percentage of women in the workforce of major cities in Canada. The Conference Board of Canada, 2017; Statistics Canada, 2017 Harvard Business Review, 2016; Census 2016, Statistics Canada;

Personal Income per Capita Calgary CMA $90,000 $80,000

$65,942

$67,162 2019F

$64,098 2017

2018F

$62,920

$63,380 2015

2016

$61,802

$59,968

$58,053

$55,372

$52,321

$50,706

$40,000

$54,679

$50,000

$52,719

$60,000

2014

$70,000

$30,000 $20,000 $10,000

2013

2012

2011

2010

2009

2008

2007

$0

Source: Conference Board of Canada, 2017

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Personal Income per Capita

6.5%

$70,000

5.5%

$64,098 $60,000

4.5% 3.7%

$50,000

$54,756 $51,760 $48,594

$48,074

$44,842 $40,000

$49,797

2.5%

2.5% 1.2%

1.9%

1.6%

$30,000

3.5%

2.8%

2.5%

$44,134

1.7%

2.6%

1.9%

1.5%

1.2%

1.0%

0.8%

0.5%

0.6%

-0.5%

$20,000

-0.7%

$10,000

$0

$47,546

-1.5% -1.8%

-2.9%

-2.5% -2.7%

Vancouver Edmonton

Calgary

Regina

Saskatoon Winnipeg

2017 Personal Income per Capita

Toronto

2017 Growth Rate

Ottawa

-3.5%

Montreal

2016 Growth Rate Source: Conference Board of Canada, 2017

25%

Personal Income per Capita Historical Growth Rates 23.7%

22.9%

21.9% 19.8%

20%

18.6% 17.2%

15%

17.9%

17.5%

17.2%

13.9% 11.6%

11.2% 10% 7.5%

6.9% 5%

5.1%

4.2% 1.6%

0%

Vancouver Edmonton

Calgary

Regina

5-Year Total Growth Rate (2013-2017)

1.4%

Saskatoon

Winnipeg

Toronto

Ottawa

Montreal

10-Year Total Growth Rate (2008-2017) Source: Conference Board of Canada, 2017

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Wages and Salaries Highly educated and diverse population.

Calgary represented the highest wages and salaries per employee in the country, at $75,268 in 2017, up 1.2 per cent from the previous year. Wages and salaries for the Calgary CMA is forecast to be $77,436 in 2018.

Calgary had the highest proportion of STEM graduates of major Canadian cities in 2016, with 17.7 per cent of graduates 25 to 64 with STEM degrees.

Calgary employees have consistently been the most compensated for the past decade of major Canadian cities and boast the highest total growth in earnings (21.4 per cent) for the 2008 to 2017 period. Calgary wages and salaries experienced moderate growth of 8.4 per cent in the past five years (2013 to 2017).

Calgary is a global city and one of the most ethnically diverse cities in Canada, with 33.7 per cent of the population visible minority. Census 2016, Statistics Canada

Average Wages and Salaries Calgary CMA $100,000 $90,000

$75,268 2017

$77,436

$74,381 2016

$71,723 2015

$69,465

$66,457

$63,999

$60,773

$73,037

$40,000

$58,119

$50,000

$60,117

$60,000

$61,984

$70,000

2014

$80,000

$30,000 $20,000 $10,000

2018F

2013

2012

2011

2010

2009

2008

2007

$0

Source: Conference Board of Canada, 2017

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Average Wages and Salaries for Select CMAs

$90,000 $80,000

5.0%

$75,268 3.5%

$70,000

3.1%

4.0%

3.7%

$65,222

2.7% 2.5%

$60,000

$54,141 $50,000

$47,030

$52,767 2.0%

$45,156

1.4%

$40,000

3.0%

2.0%

2.0%

1.0%

1.2%

0.9%

$30,000 0.0% $20,000 -1.1%

$0

Vancouver

-1.0%

-1.3%

$10,000

Edmonton

Calgary

Toronto

2017 Average Wages and Salaries per Employee

Ottawa

2017 Growth Rate

Montreal

-2.0%

2016 Growth Rate

Source: Conference Board of Canada, 2017

Average Wages and Salaries Growth Rates for Select CMAs 25% 21.4% 20% 17.8%

18.3%

17.8% 16.6%

15% 11.6%

11.0% 9.7%

10%

8.4% 6.5%

6.4% 4.4%

5%

0%

Vancouver

Edmonton

Calgary

5-Year Total Growth Rate (2013-2017)

Toronto

Ottawa

Montreal

10-Year Total Growth Rate (2008-2017) Source: Conference Board of Canada, 2017

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Household Income

Assets are comprised of private pensions, financial assets and non-financial assets such as real estate (principal residence and other real estate) and vehicles. The median total assets owned by Calgary families was $584,800 in 2016, up 17.5 per cent from the 2012 median value of $497,900.

According to Census 2016 results, the 2015 median total income for Calgary households was $99,583 and the 2015 median after-tax total income was $84,773. Calgary households have the highest median total income of major Canadian cities. Calgary has experienced median household income growth of 22.7 per cent since 2005 (Source: Household income in Canada, Key results from the 2016 Census, Statistics Canada).

Debt is comprised of mortgages, lines of credit, credit card debt and loans. The median total debt owed by Calgary families was $175,000 in 2016, up 21.1 per cent from the 2012 value of $144,500. Calgary families have among the highest median total value of debt owed of select major CMAs. Toronto families reported 71.5 per cent growth in total value of debt owed in 2016, the highest of select CMAs in Canada.

Financial Security The Survey of Financial Security provides a comprehensive picture of the financial health or net worth (assets less debts) of Canadians.

Exceptional quality of life.

The median net worth of Calgary families was $339,400 in 2016, up 17.2 per cent from the 2012 median value of $289,600 (the last time the Survey of Financial Security was conducted by Statistics Canada) and the second highest growth of select major CMAs in Canada.

Calgary has ranked among the top five most liveable cities in the world every year since 2009 because of our economy, safety, infrastructure, social programs and a healthy lifestyle. The Economist Intelligence Unit, 2017

$70,336

$61,348

$53,738

$61,790

$69,904

$82,053

$68,632

$78,373

$60,846

$60,000

$70,795

$71,621

$82,999

$84,447

$84,773

$72,372

$63,365

$80,000

$72,662

$100,000

$80,578

$94,447

$120,000

$99,583

Household Income

$40,000

$20,000

2015 Median Total Household Income

Canada

Montreal

Ottawa

Toronto

Winnipeg

Saskatoon

Regina

Calgary

Edmonton

Vancouver

$0

2015 Median After-Tax Household Income Data released on a 2 year lag to current year. Source: Census 2016, Statistics Canada

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Median Net Worth of Families $600,000

$365,100

$154,000

17.2%

8.8%

$295,100

10.4%

$257,200

25.0%

$170,000

$339,400

$277,100

$230,200

$289,600

$434,400

$300,000

$200,000

30.0%

$239,100

$400,000

$399,400

$500,000

35.0%

31.8%

14.7%

15.0% 10.0% 5.0%

$100,000

$0

20.0%

0.0% -3.7% Vancouver

Edmonton

2012 Median Net Worth

Calgary

Toronto

Montreal

2016 Median Net Worth

Canada

-5.0%

2012/2016 Growth Rate

Source: Survey of Financial Security, Statistics Canada, 2016

Median Total Value of Assets Owned by Families 35.0%

12.4%

$440,200

$391,700

$308,600

25.0%

$287,600

17.5%

$400,000 $300,000

30.0%

$606,900

$584,800

27.8% $474,700

$500,000

$497,900

$424,400

$600,000

$477,000

$700,000

$657,000

$800,000

$613,000

$900,000

20.0%

15.0%

12.4% 10.0%

$200,000

7.3%

7.2%

5.0%

$100,000 $0

Vancouver

Edmonton

2012 Median Total Assets

Calgary

Toronto

2016 Median Total Assets

Montreal

Canada

0.0%

2012/2016 Total Assets Growth Rate Source: Survey of Financial Security, Statistics Canada, 2016

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

Median Total Value of Debt Owed by Families 80.0%

$149,000

70.0% 60.0%

21.1%

$50,000

$0

Vancouver

Edmonton

2012 Median Total Debt

Calgary

Toronto

2016 Median Total Debt

$63,400

26.5%

$43,400

36.9%

$80,600

50.0%

$86,900

$144,500

$126,000

71.5%

$31,700

23.3%

$99,600

$100,000

$87,600

$150,000

$108,000

$200,000

$175,000

$250,000

40.0% 30.0% 20.0%

27.1% 10.0%

Montreal

Canada

0.0%

2012/2016 Total Debt Growth Rate Source: Survey of Financial Security, Statistics Canada, 2016

Calculated Financial Assets Calculated financial assets are estimates of the principal amounts invested to generate the dividend and interest incomes reported on the tax file. The basis of the estimation is the interest and dividend income reported and average rates of return for interest and dividends. As at 2015, 41.4 per cent of Calgary families had CFA, resulting in 248,030 Calgary families generating an investment total of $330.2 Billion (an average of $1,331,402 per family with CFA). During this same period, Calgarian CFA families’ average investment ($1,331,402) exceeded the provincial ($1,115,681) and national ($631,745) averages.

Footnote Statistics Canada’s Calculated Financial Assets (CFA) data was created from the interest and dividend information contained in personal income tax returns of all family members. Ideally, net worth may be the desired measure. Whereas it is possible to estimate the principal amount invested in interest and dividend-bearing instruments, the CFA is by no means an estimate of net worth. This measure, in particular, excludes all non-financial assets – financial assets held in which the income is not taxable, such as Registered Retirement Savings Plans, and assets that do not generate annual income in the form of interest or dividends, such as non dividend-bearing stocks. The measure in no way estimates financial liabilities, or even takes liabilities into account. The CFA, however, is an estimate of some liquid assets – assets that might be of interest to a financial marketer.

Proportionately, by 2015, Calgary families with CFA had invested a higher percentage of total investments than the provincial and national average, across CFA investment ranges from $500,000 to $1,000,000+.

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Fact Sheet: Calgary Wealth, 2017 Edition Published: February 2018

$400,000

$631,745

$1,115,681 $543,611

$727,783

$395,639

$600,000

$485,865

$800,000

$661,740

$1,000,000

Saskatoon

$747,840.49

$1,200,000

$661,261

$1,051,589

$1,400,000

Regina

$1,600,000

$1,331,402

Average CFA per Family (2015)

$200,000

Canada

Alberta

Montreal

Ottawa

Toronto

Winnipeg

Calgary

Edmonton

Vancouver

$0

Data released on a 2 year lag to current year. Source: Statistics Canada, 2017

CFA Distribution by Investment Range (2015) 60%

50%

40%

30%

20%

10%

0%

$1 - $49,999

Vancouver

$50,000 $99,999

Edmonton

$100,000 $249,999 Calgary

$250,000 $499,999

Toronto

$500,000 $749,999

Ottawa

$750,000 $999,999

Montreal

Alberta

$1,000,000+ Canada

Data released on a 2 year lag to current year. Source: Families with CFA, Statistics Canada, 2017

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