Levered speculation in Canadian real estate fuelled the economic and asset price boom from 2008 to 2018, just as the tech sector drove the 1995 to 2000 expansion, and commodities, subprime debt and US home prices the 2003-07 expansion. These prior bubbles (and centuries more of them) ended in asset drops of 50 to 80% along with a surge in bankruptcies and capital shortfalls. This time is unlikely to be different.
Yesterday’s edition of CBC’s podcast Front Burner examines the prospects in ‘Too big to fail’: COVID-19 and Canadian real estate.
Here is a direct audio link.
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