As Donald Trump prepares for his second term as president of the United States, Canada braces for potential impacts on its housing market and greater economy.
Among the most immediate concerns is Trump’s pledge to impose a 25% tariff on Canadian imports. Economists say that such tariffs could sharply reduce GDP, drive up unemployment and inflation, and force the Bank of Canada to raise interest rates. This cascade of effects could impact tenants' ability to pay rent in full or on time.
Trump’s fiscal policies could also indirectly raise Canadian bond yields, pushing fixed mortgage rates upward along with them. Mortgage strategist Robert McLister warns this would make borrowing more expensive, driving more demand toward rentals.
Nevertheless, Trump’s presidency might spur more Americans to move north – Royal LePage has already noted a rise in US-based searches for Canadian real estate (Ontario leads with 38% of searches). The weaker Canadian dollar makes rentals and homes even more attractive to US consumers. Property managers could benefit from the resulting increase in demand, especially in major cities.
Ultimately, only time will tell how deeply Trump's presidency will influence Canadians’ finances and housing options. For now, property managers can use this time to prepare for whatever comes next.
More housing policy headlines
Long list of rules pits Mississauga neighbours against townhouse board – CBC
How Ontario watered down a landmark housing law as new builds hit the brakes – Global News
Are Brampton landlords paying the price for tenants' mess? – PayProp blog
