Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Ontario Unemployment Hits Recession Levels, Driven By Excess Labour: BMO
Ontario’s unemployment rate hit 7.9% in May, nearly a point above the national average—a rare level outside of a recession. What’s unusual is the province hasn’t been losing jobs; it’s been adding them at a brisk pace, just not fast enough to keep up with its surging population growth. With job creation now slowing, this presents a serious challenge for the province in the months ahead.
Canadian Households Back To Racking Up Debt Faster Than Income
Canadian households are back to borrowing faster than their income is growing, following a brief period of deleveraging. The household debt-to-income ratio rose 0.4 points to 174% in Q1 2025, meaning households owe $1.74 for every $1 of after-tax income. Rate cuts provided sharp but temporary relief—and are now fueling borrowing more than easing debt repayment.
Canadian Government Purge? Public Sector Loses 21k Jobs In A Month
Canada’s public sector experienced an abrupt decline, shedding 0.5% (-21.3k jobs) in May. The drop was due in part to the federal government’s cuts, which marked the first annual reduction in a decade and occurred at twice the expected rate. Though the cuts sound aggressive, nearly 1 in 4 employees still work in the public sector, most at lower levels of government.
Canadian Real Estate Development Plans Fell Sharply
Despite policymakers ramping up taxpayer-funded incentives, real estate development plans are fading. The total value of building permits fell 14% to $11.7 billion in April, led by residential declines—especially in cities like Vancouver (-20% y/y). Non-residential permits also dropped 13%, suggesting the slowdown isn’t just about home prices, but a broader sign of economic weakness.
Canadian Real Estate Prices Rose 7x Faster Than Wages Since 1981
Canada’s housing affordability crisis continues to deepen. Real household incomes in Canada rose 24% between 1981 and 2024, according to a new report from Statistics Canada. Meanwhile, real home prices have increased a staggering 163.5% over the same period—about seven times the pace of income growth.
Canadian Rents Are Back To Rising After A Brief Decline
Canadian renters got minor relief, but it may be short-lived. The average asking rent was 3.3% lower than last year, but remains over 21% higher than 2020. Despite the minor correction, prices have already begun to show some acceleration, with the past 3 months posting gains.
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