Canada finds itself perched on the edge of a substantial housing bubble, sustained by an open immigration policy straining the nation’s infrastructure. As the housing market remains inflated, experts warn of an imminent Minsky Moment, signaling potential economic instability. The situation is exacerbated by alarming statistics on household debt, which has surged past the country’s GDP and holds the highest percentage among G7 nations.
Recent data from October 2023 reveals that Canadian household debt has reached unprecedented levels, soaring to $2.90 trillion, a staggering 62% increase in the past decade. The main driver behind this surge is mortgage debt, which has skyrocketed from $1.18 trillion to $2.16 trillion, marking an 82% rise over the same period. With these concerning figures, Canada faces the challenge of addressing the mounting pressure on its housing market and the potential fallout from an overheated economy. The looming Minsky Moment serves as a stark reminder of the need for careful economic management in the face of growing financial risks.
Canada is sitting on top of a massive housing bubble kept inflated by an open immigration policy that is straining every form of infrastructure in the country.
Canada’s Minsky Moment is not far away. t.co/HGQwX9YEDv
— AnilVohra1962 🇬🇧🇨🇦🇺🇸 (@AnilVohra1962) January 9, 2024
🚨 POWER OF SALE OF THE DAY 🚨
"Total Decimation in Trinity-Bellwoods" 😱
📍Toronto, ON 🇨🇦
In 2020, investors bought this home in Trinity-Bellwoods for $2M and sunk hundreds of thousands into it. They listed at a fanciful $5.4M at the beginning of this year.
No takers 🚫,… pic.twitter.com/KNMXvLUQa2
— Shazi (@ShaziGoalie) January 9, 2024
Substantially more than in the US 😬 pic.twitter.com/DQl2gg8B5r
— Pierre (@PHfloor) January 9, 2024
Toronto saw the 2nd-largest increase in construction costs in the world since 2020: pic.twitter.com/b8VxHHtV7R
— Daniel Foch (@daniel_foch) January 8, 2024