A new report says the real estate boom in Ontario and British Columbia has been a boon for housing-related jobs, but a home-price correction won't trigger a major bust for the labour markets in those provinces.
DBRS says in a report today that the hot housing markets in B.C. and Ontario boosted job growth over the last decade in sectors such as construction, home-related retail and real estate by 28 per cent – faster than other parts of Canada.
The ratings agency says if house prices fall dramatically, other sectors of the economy should be able to absorb those jobs thanks to strong economic growth and steady population gains.
But, DBRS analyst Michael Heydt says risks to household wealth, consumer appetite and investment remain.
Still, Heydt says the pace of related job growth in Ontario and B.C. was not as rapid as what U.S. states saw between 1996 and 2006 leading up to the financial crisis.