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Business leaders see housing crisis as biggest risk to Canadian economy, survey shows

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A survey from KPMG Canada found 94% of respondents agreed that high housing costs and a lack of supply are the top risk, and that housing should be a main focus in the upcoming federal budget

A housing development is built outside the edge of the Duffins Rouge Agricultural Preserve, part of Ontario's Greenbelt, on May 15, 2023.Business leaders see the housing crisis as the biggest risk to the economy, a new survey from KPMG Canada shows.

“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.

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