As global economic tensions ebb and flow, tariffs are once again making headlines — but what do they mean for local markets, especially real estate in a dynamic city like Calgary?

While the word "tariff" might conjure images of international trade disputes, these economic tools can trickle down in surprising ways — influencing material costs, construction timelines, and even home prices. Here’s how they might impact Calgary’s housing market in 2025 and what buyers and sellers should know.

🔍 What Are Tariffs — and Why Should Calgary Homeowners Care?

Tariffs are taxes or duties imposed on imported goods. For example, if Canada imposes tariffs on imported lumber, steel, or electrical components — or if countries Canada trades with do the same — the prices of these goods rise.

In real estate, construction and renovation are particularly sensitive to these changes, since they rely heavily on imported materials. The cost to build or improve a home can rise, which may influence housing supply, new home prices, and resale value.

🏗️ How Tariffs Are Affecting the Market Right Now

While Canada doesn’t currently have broad new tariffs in place in Q1 2025, uncertainty around trade relations with the U.S. and Asia — particularly in sectors like steel, concrete, and lumber — has caused supplier pricing to increase by 3.1% year-over-year, according to Statistics Canada.

Alberta-specific insights:

• The average construction cost for a new single-family home in Calgary has risen 5.8% since April 2024, driven mainly by increased material costs and longer delivery times.

• New home starts in Calgary dropped by 2.7% in Q1 2025, according to CMHC, partially due to elevated input costs.

• Benchmark home price in Calgary: $571,300 (as of March 2025, CREB) — still up 6.2% year-over-year, indicating market resilience despite inflationary pressures.

While these increases may sound concerning, they point to a more nuanced reality — Calgary’s market remains fundamentally strong, thanks to steady in-migration, job growth in tech and energy, and ongoing affordability relative to markets like Vancouver and Toronto.

👥 Advice for Buyers: Be Strategic, Not Spooked

While rising construction costs may deter some builders, this can create unique opportunities in the resale market. Here’s what buyers should consider:

✔️ Look for value in well-maintained existing homes.

With new builds facing price pressures, resale properties with recent renovations offer excellent value — especially if upgrades were completed before material costs surged.

✔️ Get pre-approved — and locked in.

Interest rates are expected to ease slightly by mid-2025 (per BMO Economics), so now is a great time to secure a mortgage rate before they dip or spike again due to global market fluctuations.

✔️ Work with a local expert.

Tariff impacts are subtle and often reflected in listing prices and time-on-market trends. A local REALTOR® can help you identify smart buys in a shifting landscape.

💼 Advice for Sellers: Use Upgrades and Timing to Your Advantage

If you’re thinking of selling in 2025, you’re still in a seller-favorable market — especially in Calgary’s desirable neighbourhoods like Pump Hill, Altadore, or Mahogany.

✔️ Highlight recent renovations.

With the rising cost of materials, homes with modern kitchens, updated roofing, and energy-efficient windows are in high demand. Market these as “cost-saving features” for buyers who don’t want to renovate.

✔️ Price competitively but confidently.

The benchmark home price in Calgary is still up over 6% year-over-year, but buyers are watching their budgets. Pricing strategically can generate competitive offers.

✔️ Leverage curb appeal and outdoor spaces.

With higher costs to install decks, fences, or landscaping, move-in-ready exteriors are a major plus. This is a great year to emphasize your home’s lifestyle features.

📈 The Outlook: Still Bright for Calgary

Despite pressures from tariffs and global inflation, Calgary’s real estate market remains one of the strongest and most stable in Canada.

The city’s balanced growth, relative affordability, and diversified economy are creating a market that’s resilient yet full of opportunity. And while tariffs may influence materials and construction in the short term, smart buyers and sellers can navigate this with confidence and creativity.

✨ Final Thought

Tariffs may impact materials — but they don’t have to derail your real estate goals. Whether you're buying your dream home or selling a beloved one, Calgary offers a wealth of opportunity. With the right strategy and guidance, 2025 could be your best move yet.

If you would like more information on how this could affect your properties value, please contact me below. 

Stuart Bartwicki

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