Time for your cheat sheet on this week’s top stories.
Canadian Real Estate
Canada’s Fake GDP Growth: Fictitious Rents Add More Than Oil
Fictitious rents are driving Canada’s recent GDP growth surprise, even more than energy prices. Nearly 25% of GDP growth in Q1 2026 came from imputed rent, compared to 15.1% from oil and gas contributions. In plain English? That’s the theoretical rent value that homeowners would pay themselves if they rented their own homes. This metric has received a significant lift from the rent boom, artificially inflating GDP through an accounting trick.
Canada’s Job Market Is Booming If You Ignore Population Revisions
The Canadian economy shocked by adding 75,000 jobs in July, trimming unemployment to its lowest level in two years at 6.4%. That skepticism you’re feeling isn’t totally unfounded, as the unadjusted data told a different story. While seasonally adjusted data showed gains, the unadjusted data revealed a sharp drop of 127,700 jobs, and a rising unemployment rate. Upcoming population revisions are also projected to worsen the data.
Toronto Real Estate
Toronto Real Estate Prices Wipe Out 2026 Gains, Drop To 5-Year Low
The price of a typical home across Greater Toronto slipped to $934,600 in July, 27% below its March 2022 highs. Home sales also pulled back from already weak levels, a trend compounded by near-record inventory. Home prices are now the “cheapest” since January 2021, and we’re using the term “cheapest” loosely here.
Toronto Business Closures Hit Highest Level Since 2020 Lockdowns
Canada’s largest city continues to face eroding economic conditions that extend beyond its real estate woes. Toronto CMA saw the highest number of April business openings in at least 11 years, reporting 10,870 new businesses. However, it recorded the second-highest number of business closures for the month, trailing only the start of the 2020 pandemic. The city’s entrepreneurial spirit may be alive and well, but so is its rough economic environment. As a result, that energy isn’t producing growth but just churn—and a lot of crushed dreams and squandered capital.
