The pandemic has changed the forces of economic activity in Canada, with residential investment making up a greater share of output than business investment for the first time last year in records dating back to the 1960s. Residential investment accounted for about 10% of total output at the end of the first quarter of 2021, eclipsing business investment’s share of 7.5% of output.
Covid-19 lockdowns prompted an exodus of Canadians from apartments and condos in city centres to homes with more space, typically further from urban areas. Low interest rates, combined with demand for larger living spaces, boosted prices and sales. With those subsiding from elevated levels, economists and policymakers have expressed concern around the financial and economic implications of a potential plunge in the market. #SANDI HALPERN # REAL ESTATE MARKET #ECONOMY #PANDEMIC