Mapping the Urban Debtscape: The Geography of Household Debt in Canadian Cities

Abstract

Vulnerability resulting from debt is part and parcel of the risk society and a salient characteristic of current neoliberal times under financialized global capitalism. Rising indebtedness increases the susceptibility of homeowners to housing and labor market restructuring, and if the degree of leverage is very high, can threaten the solvency, living standards, and social stability of local communities. However, very little is understood regarding how levels of household indebtedness are spatially distributed within or across cities, and how private debt maps onto the geography of race, class, housing, urban form, and other social variables, especially outside of the United States. It remains unknown whether and how higher and unsustainable levels of indebtedness might be associated with urban growth, decline, suburbanization, gentrification, immigration, racialization, and/or greying. This article examines the spatial distribution of household debt in Canadian cities at multiple scales of analysis. It analyzes how levels of household debt relate to a number of key socio-demographic and housing variables from the census, including those related to changes occurring over the 2000s. It simultaneously models the geography of debt at the metropolitan and neighborhood scales using multi-level hierarchical linear modeling methods, and in doing so, it identifies some key drivers and correlates of household debt and the scales at which they operate. The article concludes by discussing the implications of the empirical findings for understanding the role of the emerging urban debtscape in the restructuring of the social geography of the city.