In 2025, Donald Trump brought back some tough trade rules between the U.S. and Canada. We call these tariffs, taxes added to goods coming into the United States from Canada. This move aimed to support American businesses. But it’s also causing changes here, particularly in the Canadian real estate market.
So, what does this mean for home buyers, sellers, and builders in Canada? Let’s break it down in simple terms.
What Are Tariffs and Why Should We Care?
Tariffs are like tolls placed on products moving between countries. In this case, the U.S. added these tolls on materials like steel, aluminum, and lumber—stuff that’s often used in building homes.
If you’re wondering, “How does that affect me?”—well, when it costs more to buy these materials, it costs more to build houses. When houses cost more to build, they cost more to buy. That’s how the Canadian real estate world gets pulled into it.
Higher Costs for Builders
Imagine you’re a builder working on a new housing development. You need truckloads of wood, metal, and other things to put up even a single home. Now imagine the cost of all those supplies goes up because of these new Trump tariffs 2025. That builder has a choice—either eat the extra costs or pass them on to the buyer.
Most of the time, they pass it on. This means homes get more expensive. Sometimes, it gets so pricey that builders pause their projects. They might wait to see if costs come down or if the government steps in. When fewer homes get built, that hurts buyers.
Less Housing, More Competition
Right now, Canada is already dealing with a housing shortage in many cities. When builders construct fewer homes due to high costs, the number of places people can buy or rent goes down. That’s a big problem in places like Toronto, Vancouver, and Calgary, where people are already fighting over homes.
If demand stays the same or gets even higher, but the number of available homes drops, prices can go up fast. That’s not good news for people saving up for their first home or looking to move into something bigger.
Home Buyers Are Getting Squeezed
Let’s talk about buyers. If you’re planning to buy a house in 2025, you might find that prices are steeper than you expected. A home that was within your budget last year might now be out of reach. It’s frustrating, especially when you’ve been saving, planning, and dreaming about owning a home.
Even if mortgage rates go down a little, higher home prices might cancel out any savings. That’s what makes this such a tricky time in the Canadian real estate market
Sellers Aren’t Sure What to Do
Sellers aren’t having the easiest time either. You might think that higher prices mean more profit, but it’s not always that simple. When buyers can’t afford homes, they wait. They hold off. And if fewer people are buying, sellers may have to lower their prices or sit on their listings for longer.
This uncertainty causes a slowdown. People hesitate to make big moves, and the market starts to cool.
Real Estate Agents and Builders Feel the Pressure
People who work in real estate, such as agents and developers, are paying close attention to this situation. Builders want to keep projects going but hate the rising costs. Real estate agents want to help people buy homes, but they know the prices are tough on families.
In the middle of all this, professionals like Realtor Haseeb are helping clients understand how things are changing. When times are confusing, having someone who knows the market well is a big help.
Not All Cities Are Hit the Same Way
The effect of Trump’s tariffs on Canada isn’t the same everywhere. In places with fewer new builds or where people rely more on local materials, the change might not be as big. In big cities or growing towns, where many developments rely on cross-border goods, the impact is stronger.
A person looking for a home in Halifax may notice fewer changes than someone searching in Mississauga.
What Can We Expect in the Future?
No one has a crystal ball, but if these tariffs stick around, we could see continued pressure on the real estate market. Builders might look for cheaper materials from other countries, but that takes time. Some governments may step in with housing programs or subsidies, but those take time, too.
In the short term, home prices may keep rising, especially if housing supply stays tight. This could make it harder for first-time buyers or families on a budget to get into the market.
What Should You Do as a Buyer or Seller?
If you’re looking to buy, don’t panic. But do your homework. Make sure you understand your budget and work with a real estate agent who knows the local market well.
If you’re selling, be realistic. Your home might be worth more than before, but that doesn’t always mean it will sell fast. Buyers are more cautious right now, and many are waiting for the right moment.
If you’re building, be ready for longer timelines and higher costs. Talk to your contractor about where materials are coming from and how to handle unexpected delays.
Final Thoughts
The Trump tariffs 2025 are not only shaking up trade but also changing how people build, buy, and sell homes across the country. From building supplies to home prices, everything is feeling the pinch.
But here’s the thing—Canada’s housing market has always found ways to bounce back. We’ve been through high interest rates, shortages, and economic slowdowns before. This is another challenge that buyers, sellers, and professionals will work through together.
If you’re thinking about making a move in the housing market, now more than ever, it helps to have a trusted guide. Realtor Haseeb can help you make smart choices. He keeps you ahead, even when things seem uncertain.
