The problem is : housing IS Toronto's economy.  Today, housing is the single biggest component of the economy, whether it is mortgage brokering, furnishings, construction, renovations, materials, or repairs. Toronto rid itself of basic value added industries like manufacturing and raw material processing. There is no other primary or secondary industries pumping money into the economy. Any pull back in house values comes from the primary security for 60% of all people. That will have ripple effects all through the economy as people spend less, earn less, and invest less. Will falling housing values be reflected in falling property taxes? Of course not.  As the housing industry sheds employees, where will they work? There is no other industry capable of  absorbing them all.