The Bank of Canada’s forecasts for residential investment do not seem to account for the shift away from single-family to multi-family construction. That shift means it will take longer for construction to respond to the Bank’s previous interest rate hikes and the slump in home sales that started in 2018. Whereas the Bank thinks the downturn in construction is over, we think there is more to come.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services