The number of condominium towers under construction in Canada — as well as the number of workers constructing them — remain at record high levels.
With a few exceptions, prices have only risen since then. Fast forward to Slok’s most recent report, and the economist is still majorly concerned about Canadians, our real estate market and how much debt we’re collectively taking on.
“Canada is in serious trouble,” a line reads above a slide in Slok’s presentation deck.
MORE: Here’s what’s keeping Canada’s central bankers up at night
Deutsche Bank has updated and republished a series of charts that showcase Slok’s concerns. Here’s four of them:
Debt to income
The amount of debt among Canadian households has rocketed past incomes, reaching a record in the third quarter. That compares to receding debt levels among American borrowers. The so-called debt-to-income ratio is 162.6 per cent, meaning for every dollar in income earned, we collectively owe more than $1.62.
That’s a far more over-leveraged position than U.S. households found themselves in when the last recession hit, according to the Deutsche Bank chart below.
MORE: Canadians pile on more debt as U.S. households pay it down