According to a new report, the real estate boom in Ontario and British Columbia has been a boon for housing-related jobs, but a home-price correction won’t trigger a major bust for the labour markets in those provinces.
In its study released earlier this week, DBRS said that the hot housing markets in B.C. and Ontario boosted job growth over the last 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.
However, DBRS analyst Michael Heydt cautioned that multiple risks to household wealth, consumer appetite, and investment remain.
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.
National economy buoyed by strong housing segment, among other developments
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