For many people looking to break into the housing market and purchase their first property, condos represent the best and most affordable means of doing so. They can act as the gateway purchase paving the way via equity for one’s future dream home while simultaneously acting as one’s retirement savings plan.
Condos are typically a less expensive alternative to housing and are in desirable locations. Their accessibility may change however, as the increase in tariffs imposed on steel slowly make their way into the Canadian market.
President Trump increased the tariffs on steel and the result has been an increase of 40 percent in US steel prices. The price of materials in the US has increased and manufacturers and contractors are starting to pay the price here in Canada.
The increased costs are mostly affecting steel, but are felt also in aluminium and softwood lumber. If the upward price trend in the US continues, global steel prices will also intensify and the effects will be felt the industry over. Car manufacturers will suffer, as will those in the construction industry with the consumer will paying the price.
Experts estimate that if things continue, future owners can expect to see an increase in condo prices of up to $10 000 in an effort to compensate for increased material costs. This is further complicated by the fact that Ottawa has added its own additional duty fees on imports of steel and aluminum coming from the US, and consumers will start to pay for this as well.