The Ontario Home Builders’ Association (OHBA) is raising concerns over the Trump administration’s newly implemented tariffs, warning they could significantly impact Ontario’s struggling housing sector.
The tariffs impose a 25% tax on non-energy imports and 10% on energy imports from Canada. The OHBA says these measures will drive up construction costs, delay new housing projects, and create uncertainty for investors. Housing starts in Ontario were already down 16% in 2024, and some municipalities, like Guelph and Brantford, saw declines of more than 60%.
“I spoke to a builder recently who sold only two houses in all of 2024,” said OHBA CEO Scott Andison. “The market is already in bad shape, and these tariffs could make it even worse.”
The association warns that higher costs and economic uncertainty could push some developments into receivership, while others may be converted into rentals rather than sold. Builders are already hesitant to launch new projects, and with rising material prices, that hesitation may only grow.
OHBA says it will continue working with the provincial government to limit the impact of the tariffs. However, the association warns that unless economic conditions improve, Ontario’s housing sector could face a prolonged downturn.
Written by: J. Goden