From homeowners to renters? US tariffs’ potential impact on Canadian housing

• U.S. tariffs threaten to exacerbate Canada's already strained housing market, raising concerns about future affordability.
• Potential government interventions may include policy changes such as interest rate cuts or opening markets to foreign buyers.

The looming threat of U.S. tariffs is casting a shadow over Canada's already strained housing market. With affordability concerns at an all-time high and interest rates in flux, industry experts are watching for potential ripple effects throughout the overall economy.

We spoke to Jaclyn Rabin, real estate broker for Keller Williams Prestige and owner of Jaclyn Rabin Immobilier Inc., to understand the potential impact of these economic changes on the housing market.

Tariffs pressure: The implementation of new tariffs could trigger a cascade of economic challenges affecting homeownership. A lot of people are nervous about what's to come in the economy, especially with tariffs that may or may not be implicated,” Rabin begins. She follows up with a potential outlook, “If these tariffs come in, everything becomes more expensive. Eventually, people could be losing jobs, and the economy could get hit pretty hard. People also may not be able to afford their properties."

Housing market response: The potential economic downturn could force sweeping changes in housing choices for homeowners. "This could also go sideways where people can't afford to pay their mortgage. We could see more bank repossessions... people may choose to sell and move into a rental rather than taking on another expensive mortgage," says Rabin.

Government action: The situation would require significant policy intervention to stop a cascade of negative effects should tariffs take place. "The government's going to have to do something to try and boost that. Are they going to drop interest rates? Are they going to open it up to foreign buyers? I hope they do. It does make an impact on the market, especially in Montreal and in Quebec," Rabin observes.

Affordability crisis: Rabin mentions that the lack of affordable housing is a “tough pill to swallow” for first time buyers especially. Citing a common theme that many buyers have to rely on family money to get on the property ladder she adds, "It's almost impossible for people to enter the market unless they're receiving a gift from their parents or grandparents. That's really the only way. It's like the boomers passing the torch.”

Future outlook: The need for affordable housing solutions becomes more pressing as market pressures mount. "It's kind of sad to see, so I hope that the new government would be able to implement some more affordable housing opportunities for those looking to enter the market," concludes Rabin.