Rents falling fast in tariff-hit cities, home insurance hacks and the Home of the Week: Canadian real estate news for the week of Sept. 25

This week: The cities where tariffs are driving rents down faster and a bulk discount you’re not getting on condos. Plus, how to keep your home insurance as low as possible, and one property worth a look.

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Trade war

The tariff-exposed cities where rents are falling fastest

It’s not just the housing market taking a hit from the Canada-U.S. trade war. Average rents in the 10 cities most exposed to Trump’s tariffs have dropped three per cent since January 2025, four times faster than in the 10 least vulnerable communities, according to new data from Rentals.ca and Urbanation. And as Salmaan Farooqui reports, rental markets probably haven’t bottomed out yet, as job losses and trade war uncertainty have renters cutting back or staying put.

But not every part of Canada – or even Ontario – is feeling the strain equally. Saint John, New Brunswick, topped the list of tariff-exposed cities, as determined by the Canadian Chamber of Commerce, and half of the top 10 are cities in Ontario, including the one that saw the biggest drop in rents of any city in Canada. They all share a similar heavy reliance on auto manufacturing, steel or industrial exports to the U.S., industries Trump is targeting with his tariffs.

So how exposed is your city, and have rents fallen quickly there? Read Salmaan’s piece to see how the trade war is affecting the rental market near you.

Market moves

A bulk condo purchase reveals the steep discounts large investors are getting

You need a Costco membership to get in the door, but in the beleaguered condo market, there’s a bulk discount that’s even more exclusive. Backed by the Ontario government’s Building Ontario Fund, investment firm High Art Capital has snagged 43 unsold condo units in midtown Toronto for just $22.3-million, a sum well below the market rate. The plan is to turn the units in the Line 5 complex into rentals, with about a quarter rented for below-market rates and prioritized for health care workers who are members of the Service Employees International Union.

We know many large investors have been taking advantage of the downturn to buy-up unsold units, and getting discounts regular house-hunters could only dream of. But this is one of the only such purchases to be revealed publicly, and as Rachelle Younglai reports, that’s on purpose. “Developers generally do not want to bring attention to the fact that their building had or has unsold units, and bulk buyers don’t want other investors to know what kind of discount they’ve received because they’re competing for the lowest prices,” Rachelle told me. “Both parties likely do not want individual buyers to know that bulk buyers have received a discount.”

But even though it’s far from ideal for developers, Line 5’s developer Westdale Properties says the sale ensures people live in the units rather than leaving them empty until a buyer eventually comes around. Read the full story and what it says about the condo market in Toronto.

This week’s lowest fixed and variable mortgage rates in Canada

Rates shown are the lowest available for each term/type and category (insured vs. uninsured) as of market close on Thursday, Sept. 24.

Premium problems

The storm missed your house, but your home insurance is still going up

If you think your home insurance will stay relatively the same because you’ve never had a claim, think again. John Shmuel was shocked to see a 20-per-cent increase in the mail earlier this year, and he’s not alone. Rates have risen about 45 per cent between December, 2019, and the end of 2025, and as John writes, rising extreme weather and climate disasters are driving the surge.

You’re paying for the record damage inflicted by floods, wildfires and ice storms across Canada, even if your city was spared, because insurance pools premiums and doesn’t price your home in isolation. It relies on a quiet year in one region to offset a bad ones elsewhere, and lately, many parts of Canada have had multiple bad years straight.

But there are still things you can do to minimize the increases, from bundling your home and auto-insurance to doing preventative upgrades on your home. Read his column for advice on how to get a discount and what to keep in mind when it comes time to renew.

Design corner

Can AI help you design a space? Yes – and no

Is there a room in your home that you know needs a little something, but you aren’t quite sure what? Many homeowners are turning to artificial intelligence to suggest design ideas for their space and render images of possible transformations. But as Gayle MacDonald reports, AI’s design recommendations often create unrealistic expectations.

Designers say while AI can be a good starting point to visualize possibilities and narrow down the styles people like, it often misses the mark on budgets and practical human considerations. For example, the image above may look like a dream bedroom, but a closer look at the AI rendering shows some real problems, including no outlets in sight and ceiling light that could be a hazard for anyone of average height or taller. So if you’re thinking of using AI to get a little inspiration for your next renovation, read experts’ advice on the best ways to use it and the pitfalls to avoid.

Home of the Week

A mini home holds hidden gems

94 Spring St., Parrsboro, N.S. – Full gallery here

This tiny abode is proof good things come in small packages. Glenn Brown took downsizing to the next level after he and his former partner broke up and sold their big house in Nova Scotia. Wanting to stay in scenic Parrsboro, along the Bay of Fundy, the former corporate photographer designed a 350-square-foot home he says helped him streamline every aspect of his life.

The result is a cozy space that feels larger than it is thanks to light-coloured floors, deep plum walls and tall ceilings that slope up to 12-feet high on one side. Brown had to pare down his possessions to match the home, but found ways to make the ones worth keeping serve a new purpose. A Mennonite armoire divides the main living and the bedroom area and serves as the focal point for the place, while the rich purple hue reminds him of his grandmother’s kitchen, serving as the perfect backdrop for his collection of photographs.

And though the space is small, fun details and bespoke features leave plenty to surprise and delight. The kitchen’s custom-made copper sink perfectly fits the bowl of Brown’s stand-mixer, his largest implement. And in the bathroom, which Brown says is even a bit big, a cobalt-blue glass sink and marble-topped vanity are a pop of luxury. “I wanted to have a little gem here and there,” he said.