Please choose between the following three options for navigation.
Is Canada heading for a housing crash? Record-high household debt and ever-rising home prices point in that direction. This report looks at the real story behind the headlines. What we found might surprise you.
Get your downloadable electronic copy.
News headlines often point to a looming housing crash in Canada — a believable story given the U.S. financial crisis fresh in our memory, the ballooning house prices in some of Canada’s largest cities and record high household debt levels among Canadians.
The real story behind the headlines shows that the issue is more complex than statistics might show. Household debt and elevated home prices are not enough on their own to generate an economic crisis. In fact, a U.S.-style housing crash is highly unlikely in Canada for several reasons:
We must be clear that Canada is not without its own unique risks. There remains the ever-present risk of a hidden credit quality problem, made possible by the rise of lesser regulated non-bank mortgage lenders and mortgage aggregators.
However, the largest risk to Canada’s housing market remains the possibility of a cyclical downturn caused by rising interest rates or a potential shock to unemployment. When looking at the 2008-09 financial crisis in the U.S., Canada has very few of the ingredients that would turn a cyclical downturn in housing into a full-blown crisis, suggesting that a lack of affordability may be a permanent fixture in Canada’s largest urban centres.
January 27, 2020
In a world of emerging technologies, changing demographics, and new geopolitical pressures, what role should the Canadian accounting profession play? Learn how you can help CPA Canada's ambitious Foresight initiative to future-proof our profession.
January 10, 2020
Attend this year's American Accounting Association (AAA)'s 2020 Management Accounting Section Midyear Meeting. This two-day event includes a research conference, IMA doctoral colloquium and more.
February 10, 2020
Financial sustainability and digital disruption are influencing the future of NFPs. Be equipped to lead through complex change by attending Canada’s premiere event for not-for-profit leaders.