Construction sector expresses concern over how import tariffs are impacting the cost of building materials on Vancouver Island
Rewritten Article:
Housing woes on Vancouver Island are escalating, and a fresh challenge is looming over the construction sector - Canada's counter-tariffs on U.S. building materials, causing ripples throughout the development community.
Joshua Farquharson, Windsor Plywood Victoria's general manager, is starting to see the tariff fallout. "We've had tariffs on three orders," said Farquharson, "but I sense there's more on the horizon." Despite their efforts to source as many products domestically as possible amid pandemic-induced supply chain disruptions, his stores face limitations, especially for certain species of hardwood and specific glues.
Georgia Desjardins, vice-president of development at Seacliff Properties, concurs. "The potential for increasing construction costs is a big concern," she admitted, explaining that rising costs could drive up home prices and even stall some projects. The Beachlands, a 134-acre project spanning over 15 years in Colwood, could feel the tariff crunch. However, Desjardins remains uncertain about the extent of the impact on the ambitious project.
Casey Edge, Victoria Residential Builders Association representative, believes the British Columbian housing crisis continues, with record-high prices in Canada. Recent data indicates that the problem is worsening, with Greater Victoria seeing a 33% decline in housing starts year-to-date. Edge accuses all levels of government for the affordability issue, arguing that housing has become a revenue-generating machine instead of a basic need.
According to the enrichment data, tariffs weigh on the housing market by increasing material costs, such as 25% surcharges on steel beams and aluminum panels. This cost pass-through is likely to exacerbate Vancouver Island's already inflated home prices. The trade barriers may also favor large developers over small builders, altering the competitive landscape.
Without precise localized data, the exact financial impact of the tariffs remains uncertain, but the structural cost increases align with affordability challenges seen in similarly trade-exposed markets. This could price out first-time buyers and pose long-term risks like inflation spirals and reduced housing supply diversification.
- The tariffs on U.S. building materials in Canada might worsen the affordability issues in Colwood, as increases in material costs could lead to higher home prices.
- Joshua Farquharson, the general manager of Windsor Plywood Victoria, claims that the tariffs could negatively affect smaller builders, altering the competitive landscape in the construction sector.
- The prospect of increasing construction costs due to tariffs on sports equipment could negatively impact athletes in Colwood, as affordability constraints may reduce the availability of sports equipment and equipment-related projects.
