Since Donald Trump took the presidency in the USA, tariffs have been impacting the global economy. The real estate industry is no exception, and the rise in property values and rentals we saw as of now is likely to see an even further hike owing to the changed tariffs. To get the most out of your property, hire an exceptional property management company like us, Sider Property Management. Contact us to learn more.
The tariff effect discussion has usually revolved around manufacturing and consumer goods. However, real estate is also experiencing the ripple effect as materials needed to build and renovate housing affect the whole construction business. From the rising costs of building materials to shifts in investor sentiment, these policy changes are influencing how properties are developed, maintained, and managed. The Canadian property market and property management trends are witnessing quite a shift these days.
Higher Construction and Renovation Costs
About 7% of residential construction materials and renovation materials are imported to the US from other countries. About three-quarters of wood products (for example, lumber used for framing) come from Canada. At the same time, iron, steel, and steel products are imported to Canada from nations like the United States, China, and South Korea.
The new tariff plan has triggered the trade war lately, and this makes it tough on all industries, making it tough for the property management companies in Toronto. Tariffs on items such as steel and electrical components have impacted the overall construction and renovation value. This scenario affects the budgets of property developers and owners, which causes delays in the project compilation, too.
Delayed Development: Rising Demand for Rentals
The newly launched tariffs have stirred the real estate space. Many of the projects that are under construction or are yet to be completed are facing delays or are being scaled back. The reduced pace of development creates increased demand for existing rental spaces. This scenario also increases property rents. Property management firms in Canada are witnessing a more competitive rental market than ever before. Thus, the impact of changes in tariffs on real estate and property management has been severe, yet gradual.
Changing Choices of Investors:
Over the last 6 months, Investors have started to amend their ways to secure their hard-earned money owing to the changing landscapes of the real estate space. Some of the investors have considered other sectors, such as equity or mutual funds, which are more liquid assets compared to real assets. However, those sectors are also heavily affected at the moment. Also, a few investors who were already into real estate started to pull back their resources lately. Real estate investment was considered safe and thriving as of now.
Local Partnership
In such an affected economy, having access to reliable and reasonably priced vendors has become a significant competitive advantage for property management companies in Canada. The market is gaining its strength from cultivating strong relationships with local suppliers and service providers who may be less susceptible to international tariff fluctuations. By working with vendors who can offer stable pricing and timely delivery of essential maintenance and repair services, managers can escape some of the tariff-related disruptions and continue to maintain high standards of property upkeep for their clients.
Here’s a visual breakdown of how the 2025 tariffs are reshaping the real estate and property management landscape:
The 2025 tariffs surely and strongly left an impact on the economic environment, especially on Canadian real estate and property management sectors. Largely, the situation has bright challenges; however, on the silver lining, it has come up with opportunities for companies that are agile, informed, and forward-thinking. Property management firms across Canada are required to work on their strategies in order to adapt to the shifting market while remaining relevant and profitable. From increased costs in construction and maintenance to shifting dynamics in foreign investment and supply chain planning, these changes have given different insights to the property managers.
By staying informed about these evolving economic factors and proactively adjusting their operational approaches, Canadian property managers can continue to provide significant value to both property owners and tenants in this changing economic landscape. By understanding the broader implications of these tariffs, property management firms can better position themselves to protect assets, control costs, and seize emerging opportunities.
Ready to navigate the 2025 tariff challenges? Contact Sider Property Management today to optimize your property strategy!