Toronto has been ranked numero uno in CIBC’s Canadian Metropolitan Economic Activity Index partially due to its booming real estate sector.
The Index, which released its third quarter 2011 report last week, measures various economic growth factors and ranks 25 Canadian metropolitan areas based on several macroeconomic variables.
Toronto topped the list, scoring a 23 in the third quarter of 2011. Edmonton followed with a score of 20 while the top five was rounded off by Kitchener, Halifax, and Vancouver.
Real estate was an important economic driver for Toronto, according to CIBC Deputy Chief Economist Benjamin Tal, writing in his latest Metro Monitor Report.
“At only 1.4%, the apartment vacancy rate (in Toronto) is currently at a 10-year low, while non-residential construction activity has already reached pre-recession levels,” he said.
Population growth and job figures are higher than the national average and the city’s index ranking is at its highest level in more than a decade.
Meanwhile in Vancouver, the effects of a slowing real estate market were beginning to show despite ongoing population and job growth.
Nine areas are measured for the rankings: population growth, employment growth, unemployment rate, full-time share in total employment, personal bankruptcy rate, business bankruptcy rate, housing starts, MLS housing resales and non-residential building permits.
Toronto didn’t hit number one in any of the categories, but had the strongest figures overall.
See the full rankings list right here!