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Business leaders say housing biggest risk to economy: survey

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Business leaders see the housing crisis as the biggest risk to the economy, a new survey from KPMG Canada shows.

A new housing development is constructed just outside the edge of the Duffins Rouge Agricultural Preserve, part of Ontario's Greenbelt , on Monday, May 15, 2023. Business leaders see the housing crisis as the biggest risk to the economy, according to a survey from KPMG Canada. THE CANADIAN PRESS/Chris Young

“What we're seeing in the survey is that the businesses are needing to pay more to enable their workers to absorb these higher costs of living,” said Caroline Charest, an economist and Montreal-based partner at KPMG. “It leaves household balance sheets more vulnerable, in particular, in a period of economic slowdown. So it creates areas of vulnerability in the economy.”

“How can we work bringing all stakeholders, that being governments, not-for-profit organizations and the community and the private sector together, to find solutions to develop new models to deliver housing,” said Charest.The federal government has been working to roll out more funding supports for other levels of government, and introduced measures like a GST rebate for rental housing construction, but it only has limited direct control on the file.

The survey of companies was conducted in February using Sago's Methodify online research platform. Respondents were business owners or executive-level decision makers.

 

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