As of November 6 2024, Donald John Trump was declared the 47th president of the United States of America, making history as the second president of the United States to serve 2 non-consecutive terms after Grover Cleveland in 1897. After a win in Wisconsin, the Republican party’s electoral votes were pushed above 270, which allowed them to declare victory over the Democrat party, and Kamala Harris. However, with Trump’s victory comes changes to the economy and real estate market in North America. For instance, right after Trump’s election on November 6, various American stock exchanges and their stocks, including Elon Musk’s Tesla, banks, and Bitcoin, are increasing in price significantly in the morning after the election. Tesla’s stocks increased more than 15% overnight, while Bitcoin increased more than 8%. On the other hand, inflation rates are becoming a concern after Trump announced his plan to raise tariffs by 10% across all global trading partners, a move that could potentially increase inflation by more than 1%. The question is: How will this election affect the economies of neighbouring countries, particularly Canada, and what does it mean for their real estate markets?&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Trump is notorious for aggressively in seeking interest rate cuts from the Federal Reserve. Due to his administrative laws, he has power to cause change in the economic landscape drastically. As Trump pushes for a faster growing economy, there is a higher chance that he will seek to keep interest rates lower to encourage longer and more investments and spending. Due to how interconnected the US and Canadian economies are, usually when the US federation cuts interest rates, Canada is quick to follow. This allows for lower mortgage payments around the country which could lead to more activity in the real estate market. Lower interest rates however are usually foreshadowing housing demand especially for first-time buyers and investors. This will most likely cause a continued increase in housing prices in population dense areas such as the GTA and Vancouver.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Another key point to monitor is the potential increase in immigrants in Canada. As the Time Magazine states, Trump’s plan can serve to deport millions of people living in America and continue to tighten immigration laws. Because of this, American emigrants and potential immigrants from other countries may turn to Canada as an alternative area to immigrate to. The issue that arises from this is the continued demand for housing in these Canadian cities. An increase in immigrants will increase the housing demand, and for cities such as Toronto and Vancouver already experiencing a shortage of housing across neighbourhoods, this can add even more strain on the market. This may also engage foreign investors into the Canadian market as more immigrants start to move in, but there is no direct correlation that will suggest this is happening.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the other hand, there are also possibilities on how Trump’s election will be able to benefit the Canadian economy and housing market. For instance, there would be a higher chance of more American investments in Canadian real estate. Trump is known for favouring decreases in corporate taxes, in this case they could be down to 15% or less as well as lowering the tax on capital gains. These plans allow greater wealth and income around middle- and upper-class individuals in America. Due to the fact that Canada’s real estate market is usually politically stable and relatively safe to invest in, many wealthier individuals in the US could turn to Canada’s housing assets to invest in. As this starts to move and affect the finances in Canada’s housing industry, it has a higher chance of promoting growth in the real estate market as well. This is because it allows more money to flow into Canada’s real estate corporations and industry and when demand for properties increases, it allows a boost in the market. To add, with more funds in Canada’s real estate market, it can boost the financial support needed to develop Canadian infrastructure and further housing and can even reduce some of the pressure on housing affordability. This may even create more job opportunities in real estate which benefits the economy as a whole.&nbsp;While the re-election of Donald J. Trump may not necessarily directly positively or negatively affect the Canadian real estate market in particular, it is important to note that the close relations between the two countries often leads to mirroring of America’s policies and economic changes onto the Canadian economy. Through Trump’s various laws and decisions, his policies could create an array of effects through economic, political, and social methods that will most likely influence the Canadian housing market. In the present time however, these are all possibilities and require longer speculation and Canada’s real estate market would likely experience both growth and challenges, particularly in high-demand urban areas due to the election.&nbsp;

What President Trump’s Election Means for the Real Estate Market in Canada

Trump’s win boosts interest in Canadian real estate as US economic policies shift, sparking potential demand and investment uptick in Toronto and Vancouver.

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