Consumers Remain Highly Indebted—Although the debt-to-income ratio did slow momentarily early in 2017, it has resumed its upward climb. With interest rates already starting to rise, consumers will be paying more to finance their debt going forward. This will push down demand for housing and renovation activity.

Government Intervention—Foreign buyers taxes in Ontario and British Columbia have already put downward pressure on new housing construction. This is being compounded by the federal government’s new stress-test requirements that make it more difficult for Canadians to qualify for mortgages.

Uncertainty Continues to Rise—Business confidence is falling and risks to the economy are unusually high. At times like these, firms are reluctant to invest and consumers