IT’S A SMALL WORLD
As a proud Canadian, the global village suddenly feels very small when a tyrant (oops, outside voice) from another country can suddenly, and without provocation, throw another country into turmoil. Oh no wait, isn’t that what Putin has been doing for several years now to Ukraine?! The only difference seems to be physical war versus economic warfare.
It seems like everyone is talking about the impending tariffs on February 1, 2025: grocery store, dog walking park, various job sites and suppliers, …. Many of our neighbors in the USA are also experiencing chaos at the hands of President Trump. If we ever wondered if one person can make a difference in this world, Trump and Putin are both shocking evidence that yes, it is possible. Now the world (and especially Canada) needs to find some strong and intelligent positive leadership—and fast!!
What are the implications for builders and real estate investors?
- Everyone still needs a roof over their head. This weekend it will be back to real winter in the Calgary area, so shelter is especially important again.
- We don’t believe anyone knows where the puck is going—not even the Americans. We doubt that even President Trump can fully predict the ripple effects of his decisions—on his own people and economy, never mind on the Canadian economy. The full effects are unlikely to become clearer for months, possibly years.
- Many people and businesses will be frozen in fear and uncertainty, which could cause more people to rent for longer. We’re already hearing stories of panicked lay-offs.
- Emotions are running high, and probably about to get hotter (more dramatic). There will be a significant challenge for anyone to remain rational when surrounded by various levels of hysteria (and dare we add a plethora of misinformation to the boiling pot?!)
- It isn’t fair. That is true. One of our concerns is that many people will look for someone or something to blame. Landlords, builders and developers will continue to be an easy target. Property management is likely to require extensive written communication, and epic levels of diplomacy, with some Landlord Tenant Board intervention when necessary.
Looking forward, we see a path of hard work ahead. That’s OK. Albertans have ample resilience after our recent recession, followed by Covid. We’re ready to roll up our sleeves again! Our biggest challenge will be adapting to all the changes without being drawn into the negativity whirpool. This too shall pass. Godspeed to all the valiant entrepreneurs out there, navigating the storms ahead.
