In case you haven't noticed, Montreal is in the middle of a building boom. New, glassy towers continue to rise and fill the downtown skyline. The current construction mostly consists of ultra-luxurious condos for the rich, but the towers are also driving up costs across the downtown area.
New condos are already out-of-reach for the average Canadian, but it looks like condo prices will soon rise even more, and we have only Trump to blame.
The looming trade war between the United States and Canada will definitely have an adverse effect on the prices of day-to-day products like toilet paper and coffee. But now prospective homebuyers may also have to wait even longer to make a long-term investment.
The rising cost of steel is the main factor behind the increased costs. Tariffs on both sides of the border, initiated by Trump, have made the building material more expensive by cutting imports and limiting supply. With construction booming across Canada, demand for steel is particularly high.
That construction is sure to slow if steel becomes too expensive for developers to make returns on their investments. But growing demand for new condos will only exacerbate the situation.
In sum, Trump's steel tariffs will create a domino-effect of rising condo prices. Canadians better buy sooner rather than later.