Experts have indicated Canada will need to build millions more homes in the next 10 years to meet our growing needs. To the casual observer the problem is easy to solve: just build more homes. For those in the real estate development field, the problem is much more complicated than this.
If social distancing continues for several months, the cost to the economy and labour force would be sizeable.
That’s according to a new alternate scenario forecast from the Conference Board of Canada which looks at the impact of social distancing continuing until the end of August in both Canada and the United States.
It concludes that, rather than its baseline scenario of 0.3% growth in Canada’s real GDP this year, there would be a 1.1% contraction. Job losses would be more than 330,000 over the second and third quarters, and unemployment would rise to 7.7%.
“These are extraordinary times. Canadian leaders, business owners and households are facing unprecedented uncertainty, said Pedro Antunes, Chief Economist at The Conference Board of Canada. “If this scenario holds true, we can expect a deeper and longer-lasting hit to the Canadian economy. Still, governments have acted swiftly to mitigate health and economic impacts, once COVID-19 is contained, the economy will rebound.”
Assuming a consumer-led recession in the US, with real GDP also down 1.1%, the diminished demand from Canada’s most important trading partner means real exports of goods and services would decline by 2.1% in 2020.
In a scenario in which #SocialDistancing measures continue into August, the economy sheds over 330,000 jobs over the 2nd and 3rd quarters of 2020, boosting the unemployment rate to 7.7%. Read our latest forecast for free here: https://t.co/vxtua7QCq4#COVIDー19 #cdnecon #cdnpoli pic.twitter.com/noh451aWhe — The Conference Board of Canada (@ConfBoardofCda) March 23, 2020
In a scenario in which #SocialDistancing measures continue into August, the economy sheds over 330,000 jobs over the 2nd and 3rd quarters of 2020, boosting the unemployment rate to 7.7%. Read our latest forecast for free here: https://t.co/vxtua7QCq4#COVIDー19 #cdnecon #cdnpoli pic.twitter.com/noh451aWhe
While there has been a deceleration in new home sales, we must keep the pedal to the metal and continue to train skilled trades workers for the future.
Many jurisdictions in the U.S. have been thinking outside the box to boost the housing supply. Here in Ontario, we’d be wise to follow suit.
This free summit will feature top experts in Canadian real estate who will share their knowledge on a broad range of topics. It will be presented on Sat. Jun. 18th from 12pm-3pm.
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Diversity, equity and inclusion, better known by the acronym DEI, are buzzwords that permeate the workplace these days.
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CREW has compiled a group of investment real estate agents that we think stand out for their quality service and dedication to the world of real estate investing.
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