Canada's review of the Canada-US-Mexico Agreement (CUSMA) impacts housing costs, construction, and mortgage risk due to heavy reliance on US trade, especially in lumber, steel, and aluminum. Despite low effective tariffs, US sectoral tariffs on these materials raise costs and affect affordability. Trade tensions and geopolitical uncertainty dampen housing market recovery hopes. Concessions on tariffs may lead to cooperation, while domestic projects and policy changes support moderate economic growth.

British Columbia's housing market faces a 30-year high in unsold new-home inventory, especially apartments, due to weak pre-sales and project delays. This mirrors post-2008 trends, risking future undersupply and a potential 27% rise in inflation-adjusted home prices by 2032. To improve affordability, policies should boost demand—such as expanding GST exemptions—and support supply by reducing development costs and enabling tax-advantaged municipal bonds.

British Columbia's 2025 residential home sales hit a decade low, with a 5.6% drop to 70,255 units and an 8.3% decline in sales dollar volume to $67 billion. The Lower Mainland and Vancouver Island saw significant sales decreases, while the Okanagan and Kootenays experienced over 8% growth. Average home prices fell 2.9% provincewide to $953,345, with price drops less severe than sales declines.

Housing prices in BC remain high and ownership is unaffordable for many, though rents are easing in some areas due to increased rental supply. Previous booms driven by speculation and foreign investment have distorted prices. Current policies aim to boost supply, but non-market housing is lacking. Proposals to lift restrictions may favor developers, while more public investment is needed to address homelessness.