In an economy beset by exponentially rising debt, rising interest rates are a ticking time bomb. Higher rates force the marginal borrower to forgo purchases, while the marginal entrepreneur is forced into insolvency. This is particularly true for the Canadian real estate market, and it’s noteworthy that even the leftist media is starting to pick up on this.
Take a look at this housing development in Kitchener Ontario.…The project got city approval in 2020 and the first tower was supposed to be moving ready by 2024 but that didn’t happen. Instead only one of the four towers was started and it wasn’t finished. This project is one of more than 200 housing developments that went insolvent just in the last year alone that rate of insolvency is nearly 50% higher than the 10-year average.


