the rennie landscape KEY INSIGHTS - SPRING 2021
rates ROCK-BOTTOM INTEREST RATES HAVE BEGUN TO RISE, though they are expected to remain below pre-pandemic levels for the next couple of years (at least). The Bank of Canada continues to back- stop interest rates through its bond market participation and decision to keep the overnight rate at its effective lower bound of 0.25% into 2023. economy EMPLOYMENT IS GETTING CLOSER TO ITS PRE-PANDEMIC LEVEL in Metro Vancouver, with the region’s unemployment rate falling to almost half of what it was one year ago. Though young workers in the food, accommodation, and retail sectors continue to bear the brunt of the downturn, labour market conditions for this group have improved markedly in recent months. Employment has, to be sure, taken a self-inflicted hit due to our suppression of economic activity, but dramatic fiscal and monetary policy responses have supported many households and businesses through the worst months of the pandemic. With the jobs landscape having now improved markedly, household savings having accumulated at an unprecedented pace, and interest rates remaining low, our region’s housing market has both been shielded from the worst of the pandemic and supported through it, with the outlook for our economy being more positive today than at any point in the past year. Below is a summary of the highlights from this edition of the rennie landscape. This pocket guide presents a summary of key insights associated with the spring 2021 edition of the rennie landscape, a report focused on unpacking the myriad factors directly and indirectly influencing Metro Vancouver’s housing market. After a year like no other in living memory, where numerous economic and housing market data points were quite literally off the charts, it has been a useful exercise to take stock of how our world has evolved since February 2020.
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