Housing is as much as 20% of the economy
What do you do when the value of your house doubles? For some, it changes nothing but for others its a reason to spend, renovate or even take a home equity loan.
Bloomberg writes today that some estimates put direct contributions from residential investment at 20% of the economy. And that ignores secondary effects.
This chart shows how large a factor that residential investment is in Canada's economy, it's more than double the US.
"The question is just how will the economy look as that ceases to contribute quite so forcefully," said Eric Lascelles, chief economist at RBC Global Asset Management told Bloomberg. "All bubbles come to an end. I think it could be an interesting year or two ahead."
