As a Canadian real estate brokerage, Zown has been closely monitoring the evolving impact of U.S. President Donald Trump’s tariffs, reintroduced in early 2025, on Canada’s housing market. These tariffs, a 25% levy on Canadian exports like lumber and steel, alongside a 10% baseline on most global imports, have sent shockwaves through our economy, with real estate feeling the reverberations. From our offices in Toronto, Ottawa, and Halifax, we’re witnessing a complex interplay of challenges and opportunities reshaping the Canadian property landscape.

The tariffs hit Canada’s resource-heavy economy at its core. Lumber, a key export accounting for nearly a third of U.S. homebuilding materials, now faces steep duties, driving up U.S. construction costs by an estimated $4,900 per single-family home. This has slowed American housing starts, reducing demand for Canadian timber and rippling back to our forestry sector. The resulting economic pressure has weakened the Canadian dollar, which, as of April 2025, hovers around 1.45 CAD to USD. For Zown’s clients, this depreciation makes Canadian properties more attractive to foreign buyers, particularly from Asia and Europe, who see a bargain in our luxury condos and suburban homes. Listings in Toronto’s downtown core, for instance, have seen a 12% uptick in international inquiries since January.

However, the flip side is less rosy. Domestic buyers, our bread and butter, are under strain. Inflation has slid to 2.6%, reducing worry that the Bank of Canada may hike interest rates from their current 2.75%, but the jobs numbers are not good. This threatens affordability in a market already reeling from a 19% drop in sales volume year-over-year, as reported by the Canadian Real Estate Association. In Vancouver, where detached homes average $1.8 million, even a modest rate increase could push more first-time buyers out. Zown’s agents are seeing longer days-on-market for mid-range properties, with sellers in smaller cities like London or Halifax cutting prices by 5-8% to attract hesitant locals.

The construction sector, a vital cog in our market, is also faltering. With lumber costs rising domestically due to supply chain adjustments, new condo developments in Calgary have faced delays, and some builders are passing costs onto buyers, inflating pre-sale prices by 3-5%. This squeezes Zown’s developer clients, who rely on steady absorption rates to fund projects. Yet, it’s not all doom: the weaker dollar has spurred interest in secondary markets like Prince Edward Island, where vacation homes are drawing American retirees undeterred by cross-border tensions.

At Zown, we’re adapting to this tariff-driven reality. We’re doubling down on marketing to international investors, emphasizing Canada’s stability amid global uncertainty. For domestic clients, we’re urging pre-approvals to lock in rates and highlighting undervalued neighborhoods poised for growth. Trump’s tariffs have undeniably disrupted our market—cooling demand in some corners while heating it in others. As a alternative brokerage, we’re navigating this turbulence with data-driven strategies, confident that Canada’s real estate resilience will shine through.

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