How U.S. tariffs could affect renters in Canada
With the U.S. announcing plans to impose 25 percent tariffs on Canada on Tuesday, the effects on housing in Canada could look different for tenants, homeowners, and landlords.
Tariffs could have a big impact on buyer sentiment. Economic uncertainty could lead potential homebuyers to become more cautious and less willing to take on large debts, slowing Canada’s housing market even further.
On the other hand, asking rents are declining across the nation. According to a recent report by Rentals.ca, rents in Canada have fallen by nearly $100.
“The average asking rent for all residential properties in Canada was $2,100 in January, declining 4.4 per cent compared to a year ago to reach an 18-month low,” reads the report.
Compared to last year, notoriously expensive cities like Vancouver and Toronto saw the average price of rent drop by 5 per cent and 8 per cent, respectively.
However, as economic uncertainty looms, so do worries about housing becoming more difficult and unaffordable.
Daily Hive spoke to experts about what Canadian tenants shopping for other rentals or hoping to move to their first rented home can expect.
Tariffs’ impact on the rental market in Canada
Elena Berd/Shutterstock
According to Lisa Hannam, editor-in-chief at MoneySense, upcoming tariffs could indirectly affect the rental market in Canada due to their economic impact, such as job loss and lower rental supply.
“It is possible that tariffs can impact rent and make it more expensive or even cheaper,” she said.
Mike Heddle, broker and team leader at Royal LePage State Realty, points out that tenant demand has been relatively low due to affordability issues and low consumer confidence caused by inflation.
“We’re in a period where we’ve seen consumer confidence decline over the last four or five months where many Canadians are just uncertain, and I think the lingering effect of imposing the factor of tariffs continues to create confusion in the marketplace,” he said.
However, tenants still face more uncertainties, even with the impact of tariffs and low consumer confidence.
In 2025, the rent increase in Ontario is capped at 2.5 per cent, while in BC, landlords can increase rent by 3 per cent. As a result, Victor Tran, a mortgage and real estate expert at Ratesdotca, warns tenants to always be prepared.
“It’s a good idea for tenants to always prepare for a rent increase, as many landlords are facing higher costs, including property taxes, mortgage payments, insurance costs, and maintenance and utility fees, which are often passed down to tenants,” he said.
Good time to shop for a new rental?
Paula VV/Shutterstock
Lower rents provide favourable conditions for tenants looking to find the best deals, so is now the best time to move?
Heddle said it’s a great time to be a tenant because “the market is a little bit softer.”
“It’s a great time to get out and take a look,” he advised. “If you’re a first-time tenant leaving university or leaving home, you’ve got some choice and some selection because there seems to be a little bit of inventory for current tenants.”
But there are some things to watch out for.
Heddle pointed out that most of the drop was in high-end rentals exceeding an average monthly rent of $3,000.
“It was the entry-level price points that continue to see rent rise,” he observed.
But even with the economic uncertainty that tariffs create, Hannam noted that people don’t choose to move due to the economy.
“It’s more about their personal situations, such as job, job location, family and so on,” she said. “Plus, moving is costly, not just for rent but the other things that go along with it, such as movers, mail forwarding, truck rental, and more.”
Landlords vs. tenants
GBJSTOCK/Shutterstock
Are you looking for the best rate? If you’ve been a model tenant, now might be the best time to speak with your landlord in hopes of a bargain.
“If you can negotiate with your landlord, it’s always a good time to negotiate. If you’re a good renter, keep the place clean, pay on time, a long-standing tenant, and so on, you may have the ability to talk with your landlord,” suggested Hannam.
The likelihood of a landlord lowering rent also depends on their experience.
Heddle stated that novice investors might be more willing to negotiate favourable rents, while more experienced landlords might be more inclined to weather this current market.
However, Heddle urges tenants to be careful due to legislation and laws that prevent tenants and landlords from renegotiating rent.
“Consult with your local municipal laws or the landlord and tenant act to ensure that you know what your rights are,” he said.
Are you concerned about how the tariffs between the U.S. and Canada will affect your life, housing, and employment? Share your thoughts and observations with us at trending@dailyhive.com.
This article was originally published on February 12. It has since been updated.