CanaData’s latest construction starts forecasts are set out in the tables that accompany this report. The current year will see non-residential building starts in Canada drop to about half the level that they reached two years ago in 2007, 45.5 million square feet versus 92.1 million. The credit crunch, reduced international travel, lower world trade and high unemployment are all factors holding back privately-funded construction projects at this time. What is perhaps most remarkable, however, is the fact that interest rates remain so low in Canada and throughout the industrialized world. In no way are interest rates inhibiting factors with respect to investment.

Asset price bubbles

The federal funds rate in the U.S., at only a tick or two …