Thunder Bay's Housing Market and Economic Activity
Dr. Camillo Lento & Dr. Mehdi Arzandeh (Faculty of Business Administration)
Housing is a critical component of the economy, serving both as an indicator and a driver of economic growth. Understanding the relationship between housing and economic activity can help policymakers assess the economic health of Thunder Bay and formulate effective policies to stimulate further economic growth. In addition, policymakers should consider the housing market when making economic forecasts to help identify periods of economic overheating, potential recessions, and opportunities for stimulating growth. Effective policy measures can help stabilize the housing market and, by extension, broader economic activity.
The relationship between housing and GDP is complex and multifaceted, with each influencing the other through various channels. Housing is a barometer of economic conditions and a growth driver through its direct contributions to investment, consumer spending, and employment.
Housing has been a focus for policymakers in Thunder Bay. For example, the City of Thunder Bay recently released a Housing Land Needs Study ("HLN Study") that explores avenues for developing a sufficient and diverse housing supply over the next 20 years. The HLN Study forecasts population growth, assesses current housing supply and demand, and analyzes land availability for future development, incorporating feedback from residents and housing providers.
The purpose of our study is to complement the HLN Study by providing additional insights into Thunder Bay's housing market as it relates to economic activity and other CMAs across Ontario and Canada.
