The housing boom is the largest contributor to Canada’s economy, but it rests on growing household debt. And now it appears it may have reached its limit.
Real wages have stagnated for a decade and debt has grown to historic levels. Canadian households now spend 15% of their disposable income on debt obligations. Debt service payments are at an all-time high. Just a couple hundred dollars away from insolvency, half of working-class families can’t rub two pennies together.