This Week’s Top Stories: Canadians Spend The Most On Debt, and The Real Estate Bubble Is The 2nd Oldest


Time for your cheat sheet on this week’s top stories. 

Canadian Real Estate

Canadian Households Spend More Income On Debt Than Any Other G7 Country: BIS

Canadians devote much more income to debt payments than their G7 peers. Households in the country had an average debt service ratio (DSR) of 12.4% of income in Q4 2020. To contrast, the US was only at 7.6%, and the average for the G7 excluding Canada is 6.9% of income. Canadians even spend a larger share of income on debt payments than Americans in 2008.

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Canada’s Real Estate Bubble Is The Second Longest In The World: US Federal Reserve

Canada is now home to the second oldest real estate bubble in the world. Federal Reserve data shows the market first became exuberant 24 quarters ago. It hasn’t seen a significant correction since then, leading to further inefficiencies. Germany is the only other advanced economy with a longer running bubble. The country is one quarter older, but has only seen…

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