Simpson’s presentation showed that the optimism surrounding the arrival of the Carney government is already beginning to fade. Canadians sense that a recession, or at the very least a significant economic slowdown, is approaching. They are adjusting their behaviour, such as delaying large purchases. For the new home market, where buyers were already cautious, they are continuing to stay on the sidelines – and this represents a serious issue. When people retreat from major purchases like homes, the impacts ripple across the entire construction ecosystem. Fewer sales mean fewer starts in the years ahead. Fewer starts means fewer jobs – and less supply. This, in turn, ripples through the broader economy, with fewer appliances and home furnishings getting sold, less demand for garage doors and windows, less sod, fewer decks and fewer new fences, and on and on. Canada cannot afford a prolonged pause in housing activity at a time when supply is already dangerously behind, and the economy is already weak from a global trade war.