A recent CIBC review ranks Canada’s fastest growing economies by city. Called the Canadian Metropolitan Activity Index, it measures Gross Domestic Product (GDP) of Canada’s biggest cities. The rankings are based on the average of nine weighted variables. This includes population growth, employment growth, housing starts and re-sales, non-residential building permits and bankruptcy rates. At the top of the list is Toronto followed by Calgary, Regina, Winnipeg and Saskatoon. These economies are growing faster than the rest of the nation for a number of reasons.
Factors for Growth
For example, according to the report, Toronto has benefited from a recovery in the manufacturing sector, helped by the positive spin-off of the improvement in U.S. auto demand. Calgary and Regina are both seeing strong population growth and a healthy labour market, and both enjoy the lowest unemployment in the country.
Here are the top 10 cities according the survey:
Do you live in one of these cities? Here’s what could be in store for you this year.
Higher Home Prices
For example, if you live in one of the top two communities, you have already seen home prices skyrocket. The average cost of a home in Toronto is $485,328 and in Calgary it’s $413,921, far above the national average of $356,687. As these cities’ economies grow so will the demand on housing and that could push prices up even higher.
Greater Job Creation
Greater economic activity means more jobs. As business grows in Canada’s fastest growing cities they are able to produce more, boost their profits and eventually hire more people. The 25 communities listed in this CIBC survey could present options for out-of-work Canadians looking to find employment. A healthy labour market is a common trend among most of the top rated cities in this survey.
Better Public Services
A city with a thriving economy can afford to spend more money on public services and transit. This means better access for everyone living across the city and a city that is easier to get around in. These factors can lead help the economy continue to grow and attract even more business.