If you’ve been worried about the recent tariffs the Trump administration has placed on Canadian imports—and how they might impact the U.S. (and Canadian) economies—you’re not alone. At Faris Capital Partners, we’ve heard from many Canadian investors who are questioning whether to stay invested in the United States. Some are even thinking about selling their properties or avoiding the U.S. altogether. In uncertain times, it’s tempting to pack up and leave, especially when politicians seem more focused on point-scoring than problem-solving.

Here’s the reassuring news: Despite the ups and downs created by policy decisions, U.S. multifamily real estate—particularly Class B and C apartment buildings—remains one of the safest, most reliable investments around. Below, we’ll dive into why.

Rising Costs, Rising Rents

One of the main impacts of these new tariffs is increased material costs for everything from lumber to steel. This drives up the overall expense of constructing new single-family homes or building brand-new luxury apartments. Historically, higher housing prices have led to higher rents—and the data backs this up. As home values rise, rents follow, providing a strong underpinning for existing apartment owners.

Source: Areavibes.com

Consider the chart comparing U.S. home values to average rents over the last two decades: as home prices trend upward, rents—though sometimes lagging—tend to climb at a steady pace. This dynamic often becomes even stronger in periods of rising construction costs. Essentially, the harder it is to build new supply, the more valuable existing housing stock becomes.

The Class B and C Advantage

When you look at rising materials costs, you might wonder, “How does that help older properties?” The answer is simple: we can renovate Class B and C apartments at a far lower cost than brand-new construction. As prices for key building materials keep going up, developers of new properties must charge significantly higher rents to turn a profit.

But upgraded B and C properties can offer renters “like-new” amenities and finishes at a more affordable rate, striking a perfect balance between quality and cost. That means a broad, stable tenant base—people who want nice housing but can’t or don’t want to pay for brand-new luxury apartments.

Us vs. Them: Politicians vs. Everyday Investors

Let’s get real. Much of this current turmoil stems from political decisions that everyday Americans and Canadians have little say in. It’s the “us versus them” dynamic: we, the individual investors, are looking for ways to grow wealth responsibly and adapt to global events—while politicians often create policy uncertainty. The good news? Smart investing can thrive even in this environment because as policies shift, real estate fundamentals remain rooted in genuine demand for housing.

Steady Demand for Rental Housing

Apartment value-add investing involves acquiring underperforming or outdated apartment communities, then renovating or repositioning them to increase both rental income and overall property value. Once upgrades are made—ranging from modernizing individual units to improving communal amenities—the property can often command higher rents, thereby boosting investor returns. In both the U.S. and Canada, it’s not just single-family home buyers who feel the pinch—renters do too. And with U.S. home prices historically outpacing median incomes, many people are choosing or forced to rent, driving consistent demand for well-kept, reasonably priced apartments. This persistent demand offers a hedge against the unpredictability of political moves and economic swings.

The “Why Now” Factor

A lot of Canadian investors are understandably uneasy right now. But when it comes to real estate—especially apartments—the best deals often appear during periods of uncertainty. The rationale is clear:

1. Fewer competitors might be in the market, allowing you to lock in better terms.

2. Long-term fundamentals in multifamily remain strong, as people always need somewhere to live.

3. Tariffs and rising materials costs can translate to higher replacement costs, giving existing apartments a competitive edge.

Book a No-Obligation Call With Faris Capital Partners

If you’re on the fence about U.S. real estate, let’s chat—no strings attached. At Faris Capital Partners, our goal is to help Canadian (and American) investors make sense of the chaos and find stable, long-term opportunities. If you want to discuss how Class B and C properties can offer a safe harbor amid the turbulence, we’re here to help.

👉 Book a Call Here

Let’s face it: politicians may keep stirring the pot, but that doesn’t mean you have to sit on the sidelines. Together, we can rise above the noise, invest wisely, and create lasting value even during times of turmoil.