Canada's Residential Construction Industry: Industrial Outlook Summer 2007

The Conference Board of Canada, 9 pages, August 8, 2007
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The Canadian Industrial Outlook Service includes detailed five-year forecasts in 16 key Canadian industries. The report examines the short- and medium-term economic and profitability outlooks for these industries.

Document Highlights

  • Interest Rates—Tighter monetary policy designed to control inflation has translated into higher mortgage rates. Combined with rising home prices, this is reducing affordability.
  • Disposable Income—Strong disposable income growth, coupled with unemployment at a 33-year low, should partly offset the effects of rising prices and interest rates and help sustain capital expenditures.
  • Demographics—Demographic trends suggest some softening in Canadian housing demand. An aging population and persistent low fertility rates are limiting the pace of household formation and are expected to limit capital expenditures on residential construction.

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