Home-price correction won't hurt job markets

Other sectors of the economy are prime to absorb construction, home-related work lost in Ontario, B.C., according to DBRS report

Thestar.com
Sept. 13, 2017
By The Canadian Press

The real estate boom in Ontario and British Columbia has been a boon for housing-related jobs, a new report says, but a home-price correction won't trigger a major bust for the labour markets in those provinces.

DBRS said Tuesday that the hot housing markets in B.C. and Ontario boosted job growth over the past decade in sectors such as construction, home-related retail and real estate by 28 per cent - faster than other parts of Canada.

The ratings agency said if house prices fall dramatically, other sectors of the economy should be able to absorb those jobs thanks to strong economic growth and steady population gains.

Risks to household wealth, consumer appetite and investment remain, DBRS analyst Michael Heydt said.

Still, Heydt said, the pace of related job growth in Ontario and B.C. was not as rapid as what U.S. states saw between 1996 and 2006 leading up to the financial crisis.