Vancouver Island’s Housing Crisis Deepens as Tariffs Affect Materials
Vancouver Island’s housing market is facing a growing concern as tariffs on U.S. building materials begin to make their mark on construction costs. With housing supply and affordability already at the forefront of local challenges, the recent counter-tariffs imposed by Canada on U.S. imports are adding new pressure to an already struggling industry.
Trade War Fallout: Building Materials Hit Hard
Joshua Farquharson, general manager of Windsor Plywood Victoria, highlighted the immediate effects of the tariffs. “We’ve had tariffs now on three orders, and there’s more coming down the pipeline,” he said. While his stores have managed to source many products from Canadian suppliers, some materials, particularly hardwood species and specialized glues, remain dependent on U.S. suppliers, leaving few options for local alternatives.
Rising Construction Costs: A Concern for Developers
The tariff-induced uncertainty is raising concerns across the development community. Georgia Desjardins, vice-president of development at Seacliff Properties, echoed these concerns, noting that increasing construction costs could lead to higher home prices and potentially cause delays in critical projects. “We are closely monitoring the situation and will review how these tariffs impact the final home prices,” Desjardins said. Seacliff Properties is currently working on a large-scale development in Colwood, where 2,850 homes are slated for construction over the next 15 years, though the exact impact of tariffs remains uncertain.
Housing Crisis Deepens: A Broader Economic Challenge
The effects of the tariffs compound the region’s ongoing housing affordability crisis. Casey Edge, executive director of the Victoria Residential Builders Association, pointed out the steep decline in housing starts in Greater Victoria, down by about 33 percent year-to-date according to CMHC data. “The housing crisis is not only driven by tariffs but also by the additional costs from municipal development fees, provincial taxes, and federal GST,” Edge explained.
The Road Ahead: Tariffs Add to the Strain
As tariffs continue to impact the cost of construction materials, the pathway to affordable housing in Vancouver Island looks increasingly challenging. The combined effects of tariffs, supply chain disruptions, and rising local taxes have made building homes more expensive than ever. Local developers are left grappling with how to balance these costs while still providing affordable housing for residents.
Stay tuned to Maple News Wire for more updates on the Vancouver Island housing market and the impact of ongoing tariffs.
