I’m working on a neat series looking at the historical percentage of GDP derived from residential construction in different provinces and connecting that to the change in the percentage of the workforce employed in construction over time. It might give us some hints on how a potential housing correction might weigh on economic and job growth. Stay tuned for that.
In the meantime, I’m going to throw out two charts I’ve created in the hopes that some of our astute readers might make some connections for me. Tell me what these graphs say to you, and what are the potential implications…if any? These are all derived from Stats Canada data.
Exhibit 1: Inflation adjusted investment in residential structures in Canada.
Exhibit 2: Cumulative change in real house prices and CPI deflated mortgage debt
I’ll take a break doing the analysis for tonight and instead turn it over to my readers. Have at ‘er.
Also note that the website on the graphs is…
This is my new website. It is running and functional, but there are a few bugs to work out. All content should be ported over within a couple weeks. Check it out! It is pretty snazzy if I do say so myself.