Trump’s Tariffs & Canadian Real Estate: What Buyers and Sellers Should Know

With U.S. election headlines heating up and talk of renewed tariffs on Canadian goods, many are wondering: How will Trump’s tariffs affect Canada’s real estate market this time around? Whether you’re planning to buy, sell, or invest, understanding the ripple effects of tariffs—especially on building materials like lumber and steel—can make a big difference in your strategy.

How Tariffs Impact Canadian Real Estate

Tariffs on materials like lumber, steel, and aluminum can drive up the cost of building new homes and renovating existing ones. For example, the last round of U.S. tariffs sent lumber prices soaring, adding tens of thousands of dollars to the cost of a typical new build. Builders sometimes pass these costs on to buyers, which can push home prices higher and slow down new construction projects.

Ripple Effects on the Market

• New Builds: Higher costs can mean fewer new homes on the market, making competition fiercer for existing inventory.
• Renovations: Homeowners may delay or scale back renovation plans if material prices spike, affecting contractors and the broader renovation economy.
• Resale Market: With fewer new homes and renovations, demand can shift to resale properties, sometimes driving up prices in that segment as well.

What Buyers and Sellers Should Do

• Buyers: If you’re eyeing a new build, consider locking in prices early or exploring resale options to avoid potential cost hikes.
• Sellers: If tariffs drive up new home prices, your existing home may become more attractive. Highlight recent upgrades and energy efficiency to stand out.
• Renovators: Get multiple quotes and lock in contracts where possible. Flexibility with materials can also help manage costs.

Looking Ahead

Tariffs aren’t forever, but their effects can linger. Staying informed and adaptable is key. If you’re unsure how these changes might impact your real estate goals, reach out for tailored advice—it’s always better to be proactive than reactive in a shifting market.