In early 2025, former U.S. President Donald Trump initiated a wave of aggressive tariffs targeting Canadian goods. These measures included a 25% levy on most imports and a 10% duty on energy products, justified under national security concerns—specifically referencing drug and immigration threats from the border.
This bold move revived trade war fears and placed immediate strain on Canada's economic relationship with its biggest trading partner. With Canada being deeply interlinked with U.S. trade, the housing sector—a pillar of its domestic economy—found itself in the crossfire.
Canada’s economy is deeply entwined with that of its southern neighbor, the United States. With nearly 75% of Canadian exports heading to the U.S., any disruption in trade policy from Washington can create a domino effect across Canada’s economic sectors—including housing, construction, manufacturing, and energy.
This vulnerability has been made especially clear in 2025, following former President Donald Trump’s reintroduction of sweeping tariffs on Canadian goods. While trade tensions between the two countries aren’t new, the scale and breadth of the current measures surpass previous rounds—such as the 2018 tariffs on steel and aluminum. Back then, Canada absorbed economic shocks but rebounded relatively quickly. This time, the scope is wider, and the long-term consequences appear more entrenched.
In 2018, the U.S. justified tariffs under national security concerns. A similar rationale underpins the 2025 tariffs, but now they include critical sectors such as auto parts, steel, lumber, and even energy exports. The Canadian Construction Association (CCA) stated that “these needless tariffs will decrease productivity, harm economic growth and put critical projects and countless construction jobs at risk—on both sides of the border” (source).
This isn’t just political rhetoric; it’s backed by hard data. RBC Economics called the tariffs "Canada’s largest trade shock in nearly a century" (source). That’s not surprising given the Canadian economy’s structure, where many industries rely on the smooth flow of goods and services across the border.
A key sector affected is housing. Construction costs are climbing due to tariffs on building materials like aluminum, copper, and lumber. As Global News reported, prices for some materials have risen by more than 18% since the tariffs were enacted.
Builders are slowing or halting projects. Smaller firms are particularly affected, as they lack the capital reserves to buffer against escalating supply costs. “There’s a real fear that small developers could get wiped out,” warned Paul de Jong, president of the Progressive Contractors Association of Canada (source).
To counteract inflationary pressure and a cooling economy, the Bank of Canada has cut interest rates several times, dropping the benchmark to 2.75% by April 2025. However, according to a Wall Street Journal report, economists are increasingly skeptical of the effectiveness of this strategy given the broader geopolitical instability.
Moreover, a sharp decline in consumer sentiment is being observed. As the Canadian Chamber of Commerce pointed out in its March briefing, “Businesses and consumers alike are delaying investment and spending decisions until there’s greater clarity on trade relations” (source).
To summarize, Canada’s heavy reliance on U.S. trade leaves it exposed during policy shifts, and the 2025 tariffs are proving far more disruptive than those in 2018. With rising costs, cooling investment, and geopolitical uncertainty looming, Canada’s economic resilience is being put to the test.
The first quarter of 2025 has proven to be a critical stress test for Canada's housing market, revealing how vulnerable it is to external economic shocks—particularly from its trade-dependent relationship with the United States. After Trump's reimposed tariffs in January 2025, a chilling effect has rippled through real estate markets nationwide.
According to the Canadian Real Estate Association (CREA), home sales in March fell by 4.8%, marking the slowest March since 2009. The Home Price Index was down 1% month-over-month, and average national prices dropped 3.7% year-over-year. CREA's senior economist, Shaun Cathcart, said: “This marks the weakest March for housing since 2009, with buyers stepping back amid trade tensions” (source).
The repercussions are uneven across provinces. Ontario and British Columbia, where affordability has been a longstanding issue, are seeing the sharpest pullbacks. Home prices in Vancouver declined by 6% from the previous year, while Toronto witnessed a 4.5% drop. Alberta, heavily reliant on energy exports, is doubly affected by both tariffs on oil and housing demand softening.
Quebec, on the other hand, shows relative stability. Thanks to a more diversified economy and less dependency on U.S. manufacturing inputs, the province’s housing prices have seen only minor corrections—about 1.2% year-over-year, according to La Presse.
The construction sector is under significant strain. Developers are halting or scaling back projects due to higher input costs. Maclean’s Magazine reported: “Construction companies are halting projects mid-way due to skyrocketing input costs,” noting that many builders are opting to delay rather than risk budget overruns (source).
The rental market is also bearing the brunt. As maintenance and supply costs surge, landlords are transferring these increases to tenants. According to Rentsync, “Rents have begun climbing faster than incomes in cities like Vancouver and Toronto”—a trend likely to worsen if the tariffs persist.
Consumer confidence has also taken a hit. Many prospective buyers are opting to “wait and see” rather than commit to a long-term mortgage amid fears of job losses or economic downturns. A national survey by Equifax Canada in April 2025 found that mortgage applications fell by 9.2% year-over-year, with the biggest declines seen in high-tariff provinces like Ontario and Alberta.
Adding to the uncertainty is the role of interest rates. While the Bank of Canada has lowered rates to make borrowing more attractive, the move hasn't had the desired effect. As WSJ notes, “the rate cuts have yet to translate into increased buyer activity due to overarching economic fears.”
In short, the 2025 tariffs have triggered a rapid cooling of Canada’s housing market. With declining home prices, construction slowdowns, surging rents, and waning buyer confidence, the sector faces an uphill battle. The path forward hinges on trade negotiations, domestic policy support, and restoring consumer trust.
The impact of the 2025 U.S. tariffs on Canada's housing market has been uneven across provinces, reflecting the diverse economic landscapes and dependencies of each region. While some areas have experienced significant downturns, others have shown relative resilience.
Ontario and British Columbia, Canada's most populous provinces, have seen pronounced effects due to their heavy reliance on international trade and higher housing costs. In Ontario, particularly the Greater Toronto Area, home sales dropped by 5.2% in March 2025 compared to February, with average prices declining by 4.1% year-over-year. British Columbia faced a similar trend, with Vancouver's housing market experiencing a 6.3% decrease in sales and a 5.5% drop in average prices during the same period. These declines are attributed to increased construction costs and buyer uncertainty stemming from the tariffs.
Alberta, with its economy closely tied to the energy sector, has faced a dual challenge. The province not only grapples with the direct impact of tariffs on oil exports but also with the resulting job losses and reduced consumer confidence. Calgary's housing market saw a 4.8% decline in sales and a 3.9% decrease in average home prices in March 2025.
In contrast, Quebec has demonstrated relative stability. Montreal's housing market reported a modest 1.7% drop in sales and a 1.2% decrease in average prices. Economists attribute this resilience to Quebec's diversified economy and less exposure to sectors directly affected by the tariffs.
Atlantic Canada, encompassing provinces like Nova Scotia and New Brunswick, has also shown moderate impacts. Halifax experienced a 2.5% decline in home sales, while average prices dipped by 1.8%. The region's smaller economies and reliance on domestic markets have provided some insulation against the broader economic turbulence.
Prairie provinces, including Saskatchewan and Manitoba, have faced challenges due to their agricultural exports being subject to U.S. tariffs. Winnipeg's housing market saw a 3.2% decrease in sales, with average prices falling by 2.4%. The agricultural sector's struggles have translated into reduced income and spending power, affecting housing demand.
Northern territories, while less populated, have not been immune. Yukon and Northwest Territories reported slight declines in housing activity, primarily due to reduced government spending and investment in infrastructure projects affected by increased material costs.
Overall, the 2025 tariffs have introduced significant volatility in Canada's housing markets, with the extent of impact varying based on regional economic structures and dependencies. Provinces with diversified economies and less reliance on affected export sectors have fared better, while those heavily dependent on trade with the U.S. have experienced more substantial downturns.
The construction and development sectors in Canada have been significantly disrupted by the 2025 U.S. tariffs, leading to increased costs, project delays, and a reevaluation of future investments.
Material Costs Surge: The tariffs have led to a notable increase in the prices of essential building materials. Steel and aluminum, critical for various construction projects, have seen price hikes of 15% and 12%, respectively. Lumber prices have also risen by 10%, exacerbating the already high costs in the housing sector. These increases have strained budgets and forced developers to reconsider project viability.
Project Delays and Cancellations: The surge in material costs has led to delays in ongoing projects and the postponement or cancellation of planned developments. Smaller construction firms, operating on tighter margins, are particularly vulnerable. Many have reported halting projects mid-way due to budget overruns and uncertainty about future costs.
Labor Market Impact: The construction industry's labor market has also been affected. With projects delayed or canceled, employment opportunities have diminished. This has led to layoffs and reduced hiring, impacting workers and contributing to broader economic concerns.
Shift in Development Focus: Developers are adapting by shifting focus to projects less sensitive to material costs or those with higher profit margins. There is a noticeable trend toward luxury developments and renovations, which can better absorb increased costs. Affordable housing projects, already under pressure, are facing further setbacks.
Government Response: In response to the sector's challenges, the Canadian government has introduced measures aimed at mitigating the impact. These include subsidies for domestic material production and incentives for projects that prioritize local sourcing. However, industry leaders argue that these measures are insufficient to counteract the broader economic pressures.
Long-Term Outlook: The construction and development sectors are bracing for prolonged challenges. The uncertainty surrounding trade policies and material costs is expected to persist, influencing investment decisions and project planning. Stakeholders are calling for more robust policy interventions and a strategic approach to ensure the sector's resilience.
In summary, the 2025 U.S. tariffs have disrupted Canada's construction and development sectors, leading to increased costs, project delays, and a cautious investment climate. Addressing these challenges requires coordinated efforts between industry stakeholders and government entities to stabilize the sector and support economic growth.
The 2025 U.S.-Canada trade tensions have significantly impacted Canada's rental housing market, particularly in urban centers like Vancouver and Toronto. The imposition of tariffs has led to increased costs for building materials and maintenance supplies, which landlords are now passing onto tenants. As a result, rents have begun climbing faster than incomes, exacerbating affordability issues for many Canadians.
According to Rentsync, "rents have begun climbing faster than incomes in cities like Vancouver and Toronto," highlighting the strain on renters due to rising operational expenses for property owners. These expenses include higher costs for U.S.-made appliances, construction materials, and key maintenance supplies, all affected by the tariffs. This situation creates a perfect storm of uncertainty, with landlords facing tighter budgets and renters struggling to keep up with escalating rents. Rentsync Home
Furthermore, the tariffs have indirectly impacted energy-related costs. Imported U.S. infrastructure components, such as transformers and transmission equipment, have become more expensive, potentially increasing long-term electricity distribution costs. This could lead to higher heating costs in certain rental markets, adding another layer of financial pressure on tenants. Rentsync Home
In response to these challenges, some provinces have implemented rent control measures. For instance, British Columbia has set a 2025 rent increase limit of 3%. However, these measures may not be sufficient to offset the rising costs faced by landlords, potentially leading to reduced investment in rental properties and further tightening of the rental market.WikipediaGovernment of British Columbia
The situation is particularly dire for younger Canadians and newcomers, who are disproportionately affected by the lack of affordable housing. With rents outpacing income growth, many are finding it increasingly difficult to secure suitable accommodations. This trend threatens to exacerbate existing social inequalities and hinder economic mobility for vulnerable populations.
The reintroduction of U.S. tariffs in 2025 has significantly eroded consumer confidence in Canada, particularly within the housing market. Prospective homebuyers are increasingly hesitant to invest in long-term mortgages, citing concerns over job security and potential interest rate fluctuations. This sentiment shift is evident in the reduced attendance at open houses and a decline in mortgage applications across major Canadian banks.
The Canadian Real Estate Association (CREA) reported that home sales in March 2025 fell by 4.8% from February, marking the weakest March since 2009. The national Home Price Index declined by 1% month-over-month and 2.1% year-over-year, with the average selling price down 3.7% compared to the previous year. CREA's senior economist, Shaun Cathcart, attributed the decline largely to uncertainty over tariffs, particularly from the U.S., noting that the broader economic impact is now becoming a growing concern.
The Bank of Canada's interest rate strategy has also influenced consumer confidence. After seven consecutive rate cuts totaling 2.25 percentage points since June, the central bank's benchmark interest rate stands at 2.75%. Economists are leaning slightly toward the Bank of Canada keeping its benchmark interest rate unchanged at 2.75% this Wednesday, influenced by uncertainty surrounding President Trump's trade policies and their inflationary impact. WSJ
Despite these rate cuts, the anticipated boost in consumer spending and investment has not materialized as expected. The pervasive uncertainty created by continuously changing U.S. tariff threats is restraining consumers’ spending intentions and businesses’ plans to hire and invest. This environment of caution and reduced economic activity further dampens consumer confidence. TD Stories
In conclusion, the 2025 tariffs have significantly undermined consumer confidence in Canada, particularly within the housing market. The combination of economic uncertainty, job insecurity, and fluctuating interest rates has led to a cautious approach among prospective homebuyers. Addressing these concerns will require coordinated efforts to stabilize trade relations and implement policies that restore consumer trust in the economy.
In 2025, the Bank of Canada (BoC) faces a complex economic landscape shaped by U.S. tariffs, inflationary pressures, and a cautious housing market. After seven consecutive rate cuts totaling 2.25 percentage points since June 2024, the BoC's benchmark interest rate stands at 2.75%. This aggressive monetary easing aimed to counteract the economic strain from U.S. trade policies. However, the central bank now finds itself at a crossroads, balancing the need for economic stimulus against the risk of fueling inflation.
Recent data indicates that Canada's annual inflation rate unexpectedly slowed to 2.3% in March 2025, down from 2.6% in February, primarily due to lower gasoline and travel tour prices. This decline raised speculation about a potential interest rate cut by the BoC. However, core inflation measures, particularly CPI-median at 2.9% and CPI-trim at 2.8%, remained persistently high, posing a dilemma for policymakers. Economists are divided, balancing concerns over sticky core inflation with weakening economic sentiment due to U.S. tariffs and fragile growth prospects. Yahoo Finance
The BoC's decision-making is further complicated by the unpredictable nature of U.S. trade policies. Economists anticipate at least two more rate cuts in 2025, though a majority expect the BoC to hold rates steady at its April 16 meeting. U.S. President Donald Trump's recent 90-day pause on new reciprocal tariffs, excluding China, has done little to alleviate concerns. Tariffs on Canadian autos, steel, and aluminum remain, and the U.S. has increased tariffs on Chinese goods to 125 percent. Canada, with approximately 80 percent of its exports destined for the U.S., is particularly vulnerable to these trade policies. Wealth Professional
The BoC's Governor, Tiff Macklem, has emphasized the need for caution, stating that the central bank would be "less forward-looking than normal until the situation is clearer," warning that it could be forced to act more quickly "when things crystallize." Bank of Canada
In the housing market, the BoC's rate cuts have had limited impact. Despite lower mortgage rates, homebuyers remain hesitant due to economic uncertainty. As Clay Jarvis, a mortgage expert at NerdWallet Canada, noted, "Home buyers have had access to both shrinking rates and rising inventory this year, but many are lacking the confidence to go through with a purchase." Global News
In summary, the BoC's interest rate strategy in 2025 reflects a delicate balancing act. The central bank must navigate the dual challenges of supporting economic growth amid trade tensions while preventing inflation from exceeding its target range. As the situation evolves, the BoC's policy decisions will continue to be closely watched by markets, businesses, and consumers alike.
The 2018 tariffs imposed by the Trump administration primarily targeted specific sectors, notably steel and aluminum, with a 25% duty. While these measures did cause disruptions, their scope was relatively limited, and the Canadian housing market managed a swift recovery. Home sales experienced a temporary dip but rebounded within a year as trade tensions eased and global economic conditions stabilized.
In contrast, the 2025 tariffs are more expansive and entrenched. They encompass a broader range of goods, including autos and various consumer products, leading to widespread economic uncertainty. The Canadian Real Estate Association (CREA) reported a 4.8% decline in home sales in March 2025 compared to February, marking the weakest March since 2009. The national average selling price also fell by 3.7% year-over-year.
The prolonged nature of the 2025 tariffs, coupled with their broader scope, suggests a more sustained impact on the Canadian housing market compared to the 2018 scenario. The current tariffs affect a wider array of industries, leading to increased costs for construction materials and consumer goods, thereby dampening consumer confidence and spending power.
Moreover, the political climate in 2025 indicates a more entrenched stance on trade policies, reducing the likelihood of a swift resolution. This prolonged uncertainty continues to weigh heavily on the housing market, with potential buyers adopting a wait-and-see approach, further suppressing demand and slowing market activity.
Foreign investment has long been a significant driver of Canada's real estate market, particularly in major urban centers like Toronto and Vancouver. However, the 2025 tariffs have introduced a new layer of complexity and risk for international investors.
Additionally, the tariffs have contributed to currency volatility, with the Canadian dollar experiencing fluctuations that add another layer of risk for foreign investors. The uncertainty surrounding future trade policies and economic stability further exacerbates these concerns, leading to a cautious approach among international investors.
The luxury housing segment, which heavily relies on international buyers, is particularly vulnerable. With higher costs and increased uncertainty, many potential foreign investors are reevaluating their investment strategies, leading to a slowdown in this segment of the market.
Furthermore, the perception of Canada as a stable and welcoming environment for foreign investment is being challenged by the ongoing trade tensions. This shift in perception could have long-term implications for the country's ability to attract and retain foreign capital in the real estate sector.
The Canadian housing market is facing a period of heightened uncertainty due to the 2025 tariffs. Experts predict a further 5-7% decline in housing prices nationally if the tariffs persist throughout the year. The Canadian Real Estate Association (CREA) has downgraded its 2025 forecast, projecting only minimal growth in property transactions compared to 2024. Reuters
The increased costs of construction materials and consumer goods, coupled with reduced consumer confidence, are expected to continue suppressing demand in the housing market. This could lead to a prolonged period of stagnation or decline in housing prices, particularly in markets that are heavily reliant on foreign investment or have high exposure to the affected industries.
However, if trade negotiations progress and monetary policy remains accommodative, there is potential for a rebound in 2026. Lower interest rates could stimulate demand, and a resolution to trade tensions could restore investor confidence, leading to a recovery in housing prices and market activity.
Nonetheless, the path to recovery is fraught with uncertainty, and stakeholders in the housing market must remain vigilant and adaptable to navigate the evolving economic landscape.
Leading economic institutions have provided insights into the potential impacts of the 2025 tariffs on Canada's economy and housing market. TD Economics predicts that Canada's economy could tip into a shallow recession this year, mitigated in part by government support. The impact of tariffs on business and consumer sentiment is expected to be a significant driver of lower growth. BNNTD Economics - Canada
Scotiabank's chief economist suggests that while the Canadian economy should perform better overall than it did last year, the ongoing trade tensions and higher prices could act as a drag on growth. Scotiabank Global Site
These economic forecasts indicate that the housing market will continue to face headwinds in the short term. Reduced consumer spending power, increased costs, and heightened uncertainty are likely to suppress demand and slow market activity.
However, the long-term outlook remains cautiously optimistic, contingent upon the resolution of trade disputes and the effectiveness of government interventions to support the economy and housing market.
n response to the 2025 tariffs, the Canadian government has implemented several measures aimed at mitigating the impact on businesses and the economy. These include the remission of some countermeasure tariffs and the introduction of new support for Canadian businesses affected by the tariff dispute. Canada.ca
Prime Minister Mark Carney has also announced plans to negotiate a "new economic and security relationship" with the United States, following President Trump's decision to pause tariffs for multiple nations—excluding Canada. Connect2Canada+2New York Post+2apnews.com+2
Additionally, the government has established a CA$2 billion "strategic response fund" to support affected workers, particularly in the automanufacturing and construction sectors. This fund aims to provide retraining opportunities, wage subsidies, and support for local infrastructure projects to stimulate regional economies.
While these initiatives demonstrate the government’s commitment to economic stabilization, experts argue that such measures may only offer temporary relief. The core issue remains unresolved—Canada's trade access to the United States under fair terms. Unless the tariff situation is rolled back or renegotiated effectively, the longer-term structural pressures on the housing market will persist.
Analysts also point out that while fiscal stimulus can cushion the blow, it may not offset the decline in foreign investment confidence, nor can it significantly lower inflated building costs due to tariff-induced material shortages. This places continued pressure on housing affordability, especially in cities with already overheated property markets.
Provincially, governments in Ontario and British Columbia have begun advocating for federal housing subsidies, hoping to shield low- and middle-income buyers from the brunt of affordability challenges. However, such efforts are still in their infancy and require federal coordination to be impactful at scale.
In conclusion, Canada’s policy response is both reactive and strategic, targeting the immediate economic fallout while trying to position the country favorably in upcoming negotiations. However, until U.S. trade policy changes, the housing market is likely to remain in a state of limbo—vulnerable to both domestic and cross-border economic shifts.
For first-time homebuyers in Canada, 2025 presents a uniquely challenging environment. Despite interest rates being lowered to stimulate borrowing, affordability remains elusive due to rising home construction costs, persistent inflation, and economic uncertainty stemming from trade tensions with the United States.
The average price of a detached home in Canada’s urban centers remains well beyond what the average income can support—even with the Bank of Canada’s seven rate cuts, which brought the overnight rate down to 2.75%. WSJ article on Bank of Canada rate policy
First-time buyers are typically more sensitive to interest rates and economic trends. A survey conducted by RBC in April 2025 revealed that 68% of potential first-time buyers have delayed their home purchase due to "economic instability and inflationary fears.” This delay stems not only from affordability issues but also from fear of making a poor investment in a volatile market.
Moreover, home construction delays have worsened supply constraints. Builders are postponing projects due to rising material costs caused by U.S. tariffs on lumber, steel, and aluminum. Fewer homes are entering the market, particularly in the mid-range segment, which first-time buyers typically target. This has created a seller’s market in some regions, even amidst declining overall sales, making it difficult for newcomers to negotiate favorable deals.
Down payment requirements also remain a significant barrier. In high-demand regions such as Vancouver or Toronto, buyers still need upwards of CA$100,000 for a minimum down payment, even after slight market corrections. For many Canadians, especially younger individuals burdened with student loans and high living expenses, this target remains out of reach.
In addition to financial strain, psychological barriers are growing. The notion of homeownership as a “safe long-term investment” is being questioned more frequently in 2025 than at any time in the past decade. A cultural shift is beginning to emerge, where younger Canadians are increasingly open to renting longer-term or exploring alternative living arrangements such as co-ownership or moving to smaller cities.
In summary, 2025 is an uphill battle for first-time homebuyers. Despite lower interest rates, higher construction costs, diminished housing supply, and broader economic uncertainty are creating formidable obstacles. Only comprehensive fiscal support, stabilized U.S.-Canada trade relations, and increased housing supply can restore confidence and opportunity for this group.
The 2025 U.S. tariffs have hit Canadian builders especially hard, both large-scale developers and small construction firms. Their operational costs have soared due to steep price increases in imported construction materials such as steel, aluminum, copper, and appliances—all essential for building new homes and condos.
According to a recent industry report by the Canadian Construction Association (CCA), material costs have increased by an average of 17% since January 2025. For smaller builders, this rise is devastating. Many rely on tight margins and cannot absorb these increases without passing costs onto buyers or stalling projects altogether. CCA Construction Outlook Report
Consequently, numerous small and mid-sized developers are scaling back operations. Residential construction permits declined 12% in Q1 2025 compared to the previous quarter, with the majority of the pullback occurring in suburban developments and affordable housing projects—key sources of growth for smaller companies.
Even among large developers, caution is the prevailing mood. They are increasingly pivoting toward high-margin, luxury builds where they can recoup elevated costs more easily. This shift further sidelines the affordable housing segment, deepening the supply crisis for middle-class Canadians.
Some companies are exploring modular and prefabricated construction to counter rising costs. These techniques require less on-site labor and can sometimes reduce reliance on U.S.-sourced materials. However, transitioning to new construction models requires time, investment, and skilled labor—which are also in short supply.
Another concerning trend is the decline in labor availability. As the broader economy weakens, tradespeople are opting for more secure employment in commercial infrastructure or energy sectors supported by government stimulus. This exacerbates delays and heightens labor costs for residential projects.
To cope, developers are increasingly lobbying the federal government for tariff exemptions on certain materials and more direct subsidies. In response, Ottawa has introduced a CA$600 million “Builder Support Initiative,” offering low-interest loans to developers of affordable housing. But as of April 2025, uptake remains slow due to bureaucratic delays and eligibility confusion.
Small builders, in particular, are calling for more localized support, such as municipal tax breaks and quicker permit approvals. Urban planners warn that without such targeted aid, Canada may face a long-term decline in housing starts—especially outside major metro centers.
In essence, the developer and builder response to the 2025 tariffs has been a mixture of retrenchment, innovation, and advocacy. Until trade tensions ease and costs stabilize, however, the home construction sector will likely continue to operate in survival mode, exacerbating Canada’s housing supply woes.
Buyers: Consider fixed-rate mortgages and wait for potential market dips.
Sellers: Adjust price expectations based on regional data.
Investors: Diversify portfolios to include non-real estate sectors.
Q1: Will home prices in Canada crash in 2025?
Unlikely to crash, but a 5-7% correction is expected.
Q2: Are construction delays due to tariffs?
Yes, higher input costs and material shortages are a direct result.
Q3: How are renters affected?
Rents are rising due to increased landlord expenses.
Q4: Can interest rate cuts help?
Only partially; they don’t offset construction or trade costs.
Q5: Is now a good time to buy?
For long-term buyers, yes—especially if prices dip and rates stay low.
Q6: What sectors are least affected?
Multi-family housing and rentals in mid-size cities show more resilience.
Trump’s 2025 tariffs have rattled the foundations of Canada’s housing market, affecting pricing, development, and buyer sentiment. While policymakers and the Bank of Canada are working to stabilize the economy, ongoing trade tensions pose significant risks.
Buyers, investors, and policymakers must navigate these challenges with caution, relying on credible information and flexible strategies.
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