I still don't get why wagons aren't more popular here, it's like the younger generation are still haunted by wood paneled wagons!
But that argument doesn't work from a demographic perspective. They heyday of the wood-paneled wagon barge was, what, 1975? By the mid-80s the wagon was replaced by Chryco's minivans as the nouveau family hauler. The folks that should be in the sweet spot of the wagon demographic now - those raising younger families - were probably schlepped around in minivans, not wagons. (Which might explain the irrational hatred for minivans - ahem, Fob!)
My theory on why wagons aren't more popular:
1) Exhibit A: a reasonably-priced family wagon simply isn't available (there's lots of hatches, but no wagons). There's the Golf Wagon - and that's it. No mainstream midsize wagons, period. The Elantra Touring was a quasi-wagon - and then Hyundai brings over a true hatchback instead for the next generation. The old Focus Wagon was hugely popular in Canada, but Ford refuses to bring in the latest gen wagon. Hard to say that wagons "aren't popular", when a mainstream consumer can only buy one from VW - not from GM, Ford, Nissan, Toyota, Honda, Subaru, Mazda, Hyundai, Kia, Fiatsler, etc. It's great that BMW, Audi, Mercedes, and Volvo offer wagons in some form or another - but that doesn't help the $30K vehicle crowd.
2. Exhibit B: The compact CUV has taken over the role of the wagon. People seem to want (I didn't say need...) AWD and a higher seating position. Sure, a CUV doesn't have the same driving dynamics as a comparable wagon - but let's be honest, the vast majority of consumers care far more about AWD/higher seating than they do driving dynamics. Subaru has 3 bloody CUVs on their lot (Outback, Forester, Crosstrek) and one hatch - yet they killed the beloved Legacy wagon for NA. And their sales have set records in NA for how many years in a row?
3. Related to A&B, the profit margin for CUVs appears to be higher than for cars/wagons. If you need wagon-esque carrying capacity - MNFRs are eager to push you into a CUV for a few grand more than the comparable sedan wagon would be (though this doesn't seem the case for the luxury brands, where their CUV is cheaper than the comparable wagon? Maybe economies of scale on the CUVs?)