Toronto Has the Highest Housing Bubble Risk in the World: Report

Toronto has the highest housing bubble risk among the world’s major cities, according to a new report.
The Union Bank of Switzerland’s (UBS) report [pdf] ranked Toronto at the top of its list with a “bubble index” of 2.24, followed by Frankfurt at 2.21 and Munich at 1.81.
Vancouver’s bubble index is 1.70, the sixth-highest among the 25 cities in the study.
Factors involving imbalances in the economy, such as excess lending or construction activity, are aspects that UBS considers when calculating its bubble index. The term bubble refers to the mispricing of an asset that is not proven until the bubble bursts and prices change….