Statistics Canada’s numbers reveal residential real estate investment growth in Q2 2019 was one of the few sectors to boost GDP this past quarter. That’s of interest because studies show residential investment is strongly linked to the business cycle. The higher a country’s dependence on residential investment, the more it influences its business cycle. Part of the reason is due to the nature of residential real estate investments compared to other forms of investment. The stock market is volatile; Ups and downs often occur daily. Residential real estate is almost a far more stable long-term investment by comparison due to capital gains.
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References:
http://www.mississauga4sale.com/Housing-Paper-Real-Estate-Prices-VS-GDP.htm
https://www.worldatlas.com/articles/countries-with-the-highest-home-ownership-rates.html
https://betterdwelling.com/canadas-gdp-gets-a-boost-by-deepening-reliance-on-real-estate
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