How will the tariffs affect the Canadian housing market?

by tanya_martins_2 | February 19, 2025 1:42 pm

[1]

With the announcement of the Trump administration’s 25 per cent tariffs on Canadian steel and aluminum[2], the Ontario Home Builders’ Association (OHBA) has expressed concerns about how the new tariffs will negatively impact housing in Ontario.

The potential for economic slowdown due to the tariffs may most impact the housing sector as Canada is the largest exporter of steel and aluminum to the United States.

Per OHBA’s report[3], increasing construction material costs would lead to increased construction costs overall and, therefore, an increase in the price of new homes for potential purchasers. This would only compound the effects of decreased investment in housing, a sector already struggling to keep up with rising costs due to inflation.

This economic slowdown will likely lead to decreased investment in residential real estate and fewer housing starts. Additionally, it could slow down the progress of increasing the housing supply and improving affordability for Ontarians.

According to the report, given the importance of steel and aluminum to the trading relationship with the U.S., the new tariffs will likely weaken the Canadian dollar, further increasing construction costs in Ontario.

Source URL: https://www.constructioncanada.net/how-will-the-tariffs-affect-the-canadian-housing-market/

---