The U.S. has imposed a 25% tariff on Canadian steel and a 10% tariff on aluminum, aiming to protect American manufacturers. While this targets U.S. industries, it has ripple effects on Vancouver’s real estate market, increasing construction costs and potentially driving up home prices.
Impact on Vancouver Real Estate
1. Higher Construction Costs- Developers face rising material costs, increasing pre-sale condo prices.
- Renovations and home upgrades become more expensive.
- Higher costs may cause project slowdowns, worsening Vancouver’s housing supply shortage.
- Increased competition for resale properties could push prices up.
- Steel and aluminum are key for roofing, windows, and elevators.
- Strata fees may increase, and special levies could become more common.
- Office buildings, warehouses, and retail spaces may face higher lease rates.
- Delays in new developments could affect business expansion.
What Buyers & Sellers Should Do
For Buyers:- Consider purchasing sooner before home prices may rise if construction costs increase.
- Focus on resale properties for better price stability.
- Secure mortgage approval to lock in financing before further market shifts.
- List now while demand remains high -buyers may rush to purchase before costs go up.
- Lock in renovation costs before materials get more expensive.