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.
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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.
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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.
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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.
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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.
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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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