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Round and Round We Go

Caught in a Loop Hero
It’s mid-August so let me step away from the usual fun of leasing stats and job market stats to discuss something different. I’ve been noticing a number of situations where we seem stuck in a loop in terms of policy and the economy. 

What is the largest contributor to inflation? Why, it’s rising mortgage costs... which are caused by rising rates... which are caused by inflation. The point is even clearer with population growth and housing. We are at record high levels of population growth, and extreme unaffordability for housing. That’s not just my opinion – the Globe and Mail and even the Wall Street Journal have discussed housing/immigration conundrum. High immigration is straining housing... so we need to build more... but we lack the employees... so we need more immigration. The solution is the problem?

But what’s the alternative? Surely cutting rates isn’t going to help inflation? Canada’s birthrate is among the lowest in the world (30% below replacement level) so we can’t just remove immigration? Have we boxed ourselves in completely? Or are our preconceptions preventing us from seeing a way out?

Caught in a Loop Graph 1Caught in a Loop Graph 2

Key parts of the economy seem to be stuck in ”damned if you do, damned if you don’t” cycles, where the ”solution” seems to worsen the problem. 


Pour plus d’informations, veuillez contacter:

Adam Jacobs

Head of Research | Canada

Toronto Downtown

Colliers Canada's head of research, leading a cross-country team of 20 mapping, analytics and research professionals. Formerly head of Canada research at Cushman Wakefield and Director of Analytics at Oxford Properties. Featured in mainstream publications such as the Toronto Star, industry publications and podcasts. Specializing in the big picture and the fundamentals driving real estate - demographics, the macro environment and the global economy. 

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