High home prices send 35-to-44 age cohort to top spot for debt
Article by Tara Perkins, Globe and Mail, August 7, 2014
“Canadians who were aged 35 to 44 in 2012 have racked up more debt, relative to their net worth, than their peers did in the past.
That’s one of the findings in a new Royal Bank of Canada report about rising leverage, which dug through Statistics Canada data from 1999 and 2012 (the years for which data on debt, broken down by age group, were available).
Not only is this particular age cohort more levered than people in that age range had been in 1999, it is more levered than any other age group is at the moment. And that makes this group more vulnerable to any economic shocks, especially in the housing market.
“Their debt load is more onerous than what we’ve seen in the past,” Paul Ferley, an economist at RBC, said in an interview. “It certainly highlights the greater risk for that age group.”
Home prices are the main reason that they’re so indebted.”
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