TORONTO — Canadian communities whose economies are particularly exposed to U.S. tariffs are experiencing noticeable declines in home prices, with several Ontario cities recording some of the sharpest drops in the country.
According to the latest RPS-Wahi House Price Index from real estate platform Wahi and property valuation service Real Property Solutions, Canadian home values declined three per cent nationally in July compared with the same month last year. The decline is broadly consistent with the annual depreciation recorded throughout 2026, suggesting the country’s housing market remains relatively weak.
RPS-Wahi economist Ryan McLaughlin described the Canadian housing market as largely “stuck in neutral,” with economic uncertainty affecting buyer confidence. Although home values in some of Canada’s most expensive markets have fallen considerably from their pandemic-era peaks, affordability remains a significant challenge for many prospective buyers.
The effects appear particularly pronounced in communities whose local economies depend heavily on trade with the United States.
As Canada-U.S. trade tensions began intensifying in early 2025, Wahi started tracking home prices in 19 Canadian communities considered especially vulnerable to U.S. tariffs. The markets were identified using the Canadian Chamber of Commerce’s Tariff Exposure Index.
At the beginning of 2025, all 19 of those tariff-sensitive housing markets were experiencing annualized price increases. By July 2026, however, 12 were reporting year-over-year price declines.
Ontario’s Brantford and Barrie recorded the largest decreases, with home prices falling approximately 10 per cent from a year earlier. Abbotsford, British Columbia, followed with a decline of about nine per cent.
The results are significant because communities such as Brantford and Barrie have economies with considerable exposure to cross-border trade with the United States. Tariffs and uncertainty surrounding future trade conditions can affect employers, investment decisions and consumer confidence, which in turn may influence housing demand.
Wahi cautioned, however, against attributing falling home prices entirely to tariffs. Housing markets are influenced by numerous factors, including interest rates, employment conditions, population growth, affordability, available housing supply and consumer confidence. As a result, it is difficult to determine precisely how much of the current weakness is directly related to U.S. trade measures.
Nevertheless, the changing performance of tariff-exposed communities suggests that trade uncertainty may be contributing to weaker housing conditions in at least some Canadian markets.
The slowdown is also evident across many of Canada’s largest metropolitan areas. Prices are declining or remaining relatively flat in most of the 13 major metropolitan markets examined regularly by RPS-Wahi.
Southern Ontario continues to experience some of the country’s most substantial housing-market weakness. Toronto home prices were down approximately eight per cent year over year in July, while Hamilton recorded a decline of about seven per cent.
British Columbia is experiencing similar pressure. Home prices in Victoria declined approximately six per cent from a year earlier, while Vancouver prices were down around four per cent.
The figures indicate that some of Canada’s traditionally most expensive housing markets continue to undergo a significant adjustment following the dramatic price increases recorded during the pandemic.
Quebec, however, is moving in the opposite direction.
Quebec City recorded an approximately 11 per cent year-over-year increase in home prices in July, making it one of Canada’s strongest-performing major markets. Montreal prices increased about six per cent over the same period.
The contrast highlights the increasingly uneven nature of Canada’s housing market. While expensive markets in Ontario and British Columbia are experiencing declining values, some relatively more affordable markets continue to attract enough demand to support price growth.
According to Wahi, Canada’s strongest housing markets generally combine comparatively affordable home prices with healthy employment prospects. These conditions can sustain buyer demand even when economic uncertainty is affecting other parts of the country.
The latest figures also demonstrate how closely housing conditions can be connected to the broader economy. Communities heavily dependent on manufacturing, exports and cross-border commerce may be particularly vulnerable when businesses face uncertainty over tariffs and future access to the U.S. market.
For homeowners, declining prices can reduce accumulated housing equity, particularly for people who purchased near the peak of the market. For prospective buyers, lower prices may create opportunities, although affordability remains constrained by borrowing costs, household expenses and uncertainty about employment and the economy.
With Canada-U.S. trade tensions continuing and several major Canadian industries facing significant American tariffs, housing-market performance in trade-dependent communities will be closely watched in the months ahead.
The July figures suggest Canada’s housing market is increasingly divided: some Ontario and British Columbia communities are experiencing substantial price corrections, while markets such as Quebec City and Montreal continue to record strong growth despite the broader economic uncertainty.