Canada’s Economy Starts to Sputter as Housing Investment Plunges

[The_Foxer]

archive.ph

residential construction and investment plunged -- another signal that higher borrowing costs are cooling demand.

So the story here isn't that we're going to have a recession - everyone knew that was coming - but rather it's the slowdown in new home construction and business investment. Moreso the former.

We all know that high rents and expensive homes are a result of a lack of homes. And that the gov't intends to bring in record numbers of immigrants despite the fact we weren't building enough homes to begin with.

Well now there's going to be even FEWER homes. Housing starts are down considerably and that's likely to get worse over the next year at least - during which time our population will be growing at an even faster pace,

THe rent and housing price rates as the economy 'recovers' in 2024- 2025 should be legendary.

 

[IdRatherBeSkiing]

This is a bubble long overdue to have it's 'correction'.

 

[pgs]

So the story here isn't that we're going to have a recession - everyone knew that was coming - but rather it's the slowdown in new home construction and business investment. Moreso the former.

We all know that high rents and expensive homes are a result of a lack of homes. And that the gov't intends to bring in record numbers of immigrants despite the fact we weren't building enough homes to begin with.

Well now there's going to be even FEWER homes. Housing starts are down considerably and that's likely to get worse over the next year at least - during which time our population will be growing at an even faster pace,

THe rent and housing price rates as the economy 'recovers' in 2024- 2025 should be legendary.

Good that will keep house prices from falling out of the sky .

 

[The_Foxer]

This is a bubble long overdue to have it's 'correction'.

Well a bubble is generally when the price is over inflated substantially due to speculation with no underlying basis for the value. However - that's not really whats happening here. The lack of supply is actually a solid basis for the high value - things that are rare yet desired tend to be worth a lot of money.

Even the current 'correction' really isn't one - the actual costs of buying a new home are about the same as their height when you take interest rates and monthly payments into account. The only people who benefit are those with cash to buy outright.

If we don't start to build a lot of new homes the price and rent situation is going to go from horrible to insane.

 

[The_Foxer]

Good that will keep house prices from falling out of the sky .

True but it's just as likely to see them shoot to the moon.