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Housing Market Faces Tariff Hit
Tariffs are shaking up real estate, pushing home prices higher while big investors swoop in on rentals. Buckle up, the market’s shifting!
Today, we’re covering
🏘️ How Tariffs Could Impact Canada’s Housing Market
💁 Millennials Are Driving Canada’s Housing Market
💸 Condo Investors Exit, Institutions Take Over
🏙️ One in Four Toronto Condos Now Exempt from Rent Control
🤔 WTF of The Week
Read Time: 4 minutes
🏘️ How Tariffs Could Impact Canada’s Housing Market
U.S. tariffs on Canadian and Mexican goods are expected to drive up home prices in both countries due to higher material costs
Canada’s US import intensity for construction materials and labor is only 8.1%, equating to an estimated $33.1 billion in costs
About 40% of HVAC and mechanical equipment used in Canadian construction is imported from the US, making it one of the most affected sectors.
A 25% tariff on steel and aluminum (and Canada’s reciprocal tariffs) will drive up costs for boilers, chillers, and fabricated steel products used in real estate development.
Canada imports gypsum (drywall) and HVAC systems from the United States.
Why This Matters: The combination of tariffs, construction inflation, and government taxes could lead to project cancellations or price hikes for new developments. Rising construction costs could slow new home builds, increasing demand for resale properties and boosting their value. House flippers and developers will face higher renovation costs, cutting into profit margins. (source)
💁 Millennials Are Driving Canada’s Housing Market
Millennials are the largest homebuying group in Canada, with 56% aged 25-34 and 30% aged 35-44
Many millennials are now move-up buyers, shifting from condos to detached homes.
Equity from previous homes is helping some millennials afford single-family properties.
Affordability remains a major challenge, with high home prices and rising costs.