Experts warn that trade tensions could drive up construction costs and deepen affordability challenges.
The Canadian housing market faces a new challenge as looming U.S. tariffs on Canadian goods threaten to increase the cost of essential building materials.
While U.S. President Donald Trump recently postponed a 25% tariff on Canadian imports for 30 days, experts caution that if these tariffs take effect, they could further destabilize an already struggling housing sector.
According to a report by real estate analysts at Wahi, the return of tariffs would trigger major job losses, increase the cost of essential goods, and intensify Canada’s ongoing affordability crisis.
Beyond the U.S. tariffs, Canada’s potential counter-tariffs could spark a full-scale trade war, leading to further economic strain.
The cost of importing construction materials—already stretched by supply chain disruptions—would rise significantly, further impacting home prices and slowing new housing developments.Does Canada Have Enough Domestic Supply?
One silver lining, according to Wahi’s report, is that Canada has an abundant supply of some key building materials, such as concrete and lumber. However, the Residential Construction Council of Ontario warns that despite these reserves, the industry still faces supply shortages and a pressing need for new suppliers.
With homebuilding already struggling to meet demand, increased material costs could push affordability further out of reach, making it even harder for Canadians to enter the housing market.
With just 30 days until Trump’s tariff decision deadline, Canadian policymakers and industry leaders face mounting pressure to secure stable supply chains and prevent further disruptions in the housing sector.
For homebuyers and builders alike, the next month could determine the future of Canada’s real estate market.