Canadians remain steady on homebuying despite US tariff concerns

Canadians appear largely undeterred by US trade tensions when it comes to purchasing homes, according to a recent Wahi survey.

The survey asked Canadians whether ongoing trade disputes with the United States have influenced their plans to buy a home within the next two years. Nearly half of respondents (46%) said they have no plans to purchase. Among those still considering a purchase, 79% reported that tariffs are not affecting their decision. Only 16% said they are somewhat or much less likely to buy due to strained relations, while 4% indicated the trade climate makes them more likely to purchase.

“Some homebuyers will definitely be more cautious than others, but in general it looks like Canadians aren’t going to let US foreign policy get in the way of their homebuying aspirations,” said Wahi economist Ryan McLaughlin.

Market activity supports this sentiment. The Toronto Regional Real Estate Board (TRREB) reported that last month marked the busiest July for home sales in the Greater Toronto Area since 2021.

However, the impact of tariffs is being felt in certain markets more dependent on export-based industries. McLaughlin noted that prices have recently declined in Hamilton, Belleville, and Oshawa, cities reliant on steel and manufacturing, citing May figures from the RPS-Wahi House Price Index.

Recent developments highlight why these sectors remain vulnerable. The Financial Post reported this month that while Canada is faring “pretty good” overall in US president Donald Trump’s tariff war, the steel industry has been hit hard by 50% US tariffs. Algoma Steel chief executive Michael Garcia described the impact as “devastating,” warning that the industry requires significant investment and modernisation if such measures continue.

Other analysts have questioned whether the housing market will see a sustained uptick in activity despite the recent jump in home sales. Higher interest rates and the continuing volatility of the condo market are keeping plenty of buyers on the sidelines in Toronto, broker Victor Tran suggested in a Canadian Mortgage Professional interview this week.

For now, industry observers suggest that while the trade war is shaping conditions in some sectors, Canadian housing demand appears resilient, with only localized pockets showing signs of stress tied to tariff-sensitive industries.

CMP

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