Canadians under 35 have been building wealth faster than any other age group in recent years, yet economists warn that these gains may not be sustainable. Since the pandemic began, younger households have effectively doubled their net worth, driven largely by increases in financial assets, rising property values, and inheritances from older generations. Government support programs during the COVID-19 lockdowns, such as emergency benefits, also played a key role in helping young Canadians bolster their savings.

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Interestingly, this age group has also seen a decline in mortgage debt, unlike older Canadians. Many who purchased homes during the pandemic benefited from low interest rates and surging property prices, while others avoided entering the housing market, sidestepping new mortgage obligations altogether. As a result, younger households enjoyed both asset growth and reduced liabilities.

However, the rapid wealth accumulation comes with a significant caveat. Disposable income for Canadians under 35 has grown at a slower pace than for any other age group over the past four years, barely keeping up with inflation. This disconnect between wealth and income suggests that the financial security of younger Canadians is vulnerable, especially as pandemic-era government support fades and housing and stock markets stabilize.

Economic shocks tend to hit younger workers first, particularly those employed in sectors such as retail, hospitality, and service industries. Many recent graduates have struggled to secure employment, contributing to a decline in the overall employment rate for under-35 Canadians. These trends signal that the pandemic-driven wealth gains could be at risk if income growth remains stagnant.

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In recent quarters, signs of slowing wealth accumulation among young households have begun to appear, highlighting the fragility of these financial gains. While forecasts for the labor market suggest potential recovery, the imbalance between rising wealth and flat incomes raises questions about long-term financial resilience for Canada’s younger generation.

Monitoring this trend will be critical, as the ability of young Canadians to maintain and grow their wealth depends on improvements in income, employment stability, and continued access to investment opportunities. The early gains from government support and market trends were substantial, but sustaining these advantages will require structural changes in employment and income growth for the country’s youngest earners.