Canada is facing a worsening housing crisis. Home prices have exploded, with 45 per cent of Canadians saying they are deeply worried about finding affordable housing.
The country needs to build an additional 3.5 million homes by 2030 to achieve housing affordability. However, housing supply is lagging well behind that target even as demand continues to rise, driven largely by population growth and immigration.
Into this crisis have come new costs. In March 2025, the United States imposed 25 per cent tariffs on Canadian steel and aluminum imports. Canada immediately hit back with its own 25 per cent duties on U.S. steel and aluminum, affecting roughly $12.6 billion of steel and $3 billion of aluminum goods.
In practical terms, that means higher costs for key building materials like steel beams, aluminum cladding, appliances and machinery.
Industry groups say these duties will drive up the price of new construction and further erode affordability. In a market already strained, adding tariff charges is like pouring salt on an open wound: it makes every new home more expensive to build and to buy.
