Renovating in uncertain times: what tariffs really mean for homeowners
U.S. imposed tariffs. They’re on everyone’s mind. The degree and scale are upending the global economy, creating tremendous uncertainty, and assumptions.
Of course, the tariffs, and threat of more to come, are impacting the home renovation industry, but it’s not what you may think.
Anyone concerned about certainty, particularly job security, is understandably holding off on any major investments right now, including a home renovation. Perhaps surprisingly, tariffs have had minimal effect on our supply chains.
Most building materials used in our projects do not come from the States. They come from Canada. Yes, Canada. Our lumber, drywall, insulation, and many of our flooring options are all sourced here. The majority of our high-performance building materials (e.g. tapes and membranes) are imported from Europe, as are many of the high efficiency windows. Most tiles in our industry are sourced from either Asia or Europe. We see most kitchen appliances and certain HVAC systems, toilets and finishes coming from the States, although many non-U.S. alternatives are available.
If you want to support the Buy Canada movement, a home build or renovation offers a ready-made opportunity to do so!
Building costs are unlikely to increase, nor will they drop significantly. Too often people tell me that they will wait until the prices start to drop. They typically don’t during downturns.
As many people are holding off on starting a home renovation due to the economic uncertainty, some contractors are doing all they can to win contracts. If a bid sounds like it’s too good to be true – it is. As I stressed in my last article, avoid low bids from contractors. They are designed to lure you in but they more often than not end up costing you more in the long run due to expensive change orders.
If you are in a position to start a home renovation, go with a trusted contractor, someone who is insured and bonded and who will supply you with a thorough and accurate budget estimate. If you are nervous about the economy but have your heart set on a renovation, I recommend a phased in approach. Focus first on renovations that offer a better return on investment – such as kitchens and bathrooms.
There is some silver lining in the dark cloud. Interest rates have been dropping since the fall and may continue to do so to spur economic growth, including home renovations. The government will likely continue to offer rebates to incentivize home energy retrofits. That’s another reason to keep your renovation above board. To qualify for incentives and HST rebates, you will need to work with a contractor who charges HST and provides proper invoices.
As we try to weather this economic storm, sound knowledge is golden. That knowledge comes from trusted sources. This is particularly true when it comes to home builds and renovations. It’s also nice to know that when it comes to this industry it’s easy to Buy Canadian. Elbows up!
By Chris Phillips, Founder and President of Greening Homes Ltd. Chris is an expert contributor of Neighbours of High Park Magazine. This article will appear in the June 2025 issue.
The photo features one our our recent projects, which included a kitchen renovation. Photo by Craig A. Williams.