Feb 18, 2025
c/o https://www.stagingstudio.com/

As home stagers, it is important to stay up-to-date on interior design trends. Of course, most of your staging inventory, especially case goods, should be neutral and as timeless as possible, but you will add in more trendy items into things like art and accessories.

Many stagers are now offering design services like short-term rental styling and this is where you can really lean more into design trends. Successful Airbnbs typically marry the local aesthetic with up-to-date design trends.

Since the furnishings in a vacation rental will get much more use than your staging furniture, Airbnbs will also likely need to refresh more often. That bachelor party that got a little too rowdy might knock a piece of art off the wall, and the guest that brought a misbehaved dog might leave spots on the rug. This inevitable turnover offers an opportunity to keep the Airbnb trendy.

These are the trends we are seeing and expecting to see more of in 2025.

Disclaimer: Some photos are AI-generated so they don’t capture the idea perfectly. But you get the point!

The Rise of Moody Reds and Vintage Library Vibes

Photos by Canva AI.

Deep, rich hues are making a comeback, and color drenching dark cherry red is leading the charge.

For a recent Airbnb design project for a tiny cabin, we were inspired by the Farrow & Ball color Brinjal. It is absolutely gorgeous and so trendy right now! But, short-term rentals are all about making the highest return on investment, so we opted for a less expensive dupe: Sherwin-Williams® Deep Maroon.

This bold color brings warmth and sophistication to the cabin, and guests have been loving the vintage library vibes. It has been booked every weekend since it first went on Airbnb a few months ago!

Book your stay at the western North Carolina vacation cabin here. The private hot tub is a perfect place to spot a baby bear stealing fruit from the peach tree!

And this is how we incorporated cherry-colored elements into a recent staging project. Notice only the chairs and pillows are the bold color. You don't want to go overboard with purchasing colors, but a few pops here and there can be a huge asset to your inventory.

Photo and staging by Staging Studio.

We got the chairs above from New Pacific Direct. (Note: Our coaching group members get New Pacific Direct's lowest pricing tier! Those chairs are only $189!)

Cherries Are the New Bows

Last year, our trends blog predicted that bows would be everywhere. And wow! Are they ever.

You will still see a lot of bows for much of the year, but cherries are quickly replacing them as the "it" motif. While you might expect them to first show up in kitchens, look for cherries in bedrooms too.

As a stager, you might incorporate a cherry-print pillow or some art. If you’re designing a short-term rental, use that as an opportunity to make a cherry bedroom! Airbnbs can be way more taste-specific and follow trends, so why not dive deep into that American-farmhouse style for one of your projects this year?

If you do, be sure to tag us in your photos @stagingstudio on Instagram. We would love to feature your design.

Photos by Canva AI.

Staging Tip: Pair dark cherry red with muted tones like brown or matte black to ground the design and avoid overwhelming the space.

Tassels, Texture, and Maximalism

Photo by Canva AI.

Tassels, layered textiles, and ornate details reminiscent of the Rococo period are trending. From grand couches and furniture to intricately detailed lampshades, designers are embracing playful, feminine maximalism. Think of it as replacing the Grand Millennial style with French Maximalism.

Photos by Maverick Studio Photography. Staging by Staging Studio.

Consider mixing vintage finds, like estate-sale tassel lamps or textured rugs, with modern pieces to achieve a curated, yet contemporary, look in your home staging and design projects.

Bench Seat Sofas and Canopy Beds

Furniture trends are shifting towards timeless comfort and elegance.

Bench seat sofas, known for their seamless, cushion-free design, are gaining popularity for their clean lines and modern feel. As is usual for newer styles, these bench-seat sofas are currently more expensive than multi-cushion dupes. It is important to balance the impact of those extra lines on the sofa with the added inventory expense. Will it make that much difference? Will people, other than designers, even notice?

Notice the picture below. We love the look of this Four Hands sofa we have in our inventory, but remember that when you pay more for your inventory, your margins either get slimmer or you have to charge more. Will your market bear the higher price?

Photo and staging by Staging Studio.

Meanwhile, canopy and four-poster beds are making a resurgence, offering a sense of grandeur and intimacy.

Canopy and poster beds are difficult to use in staging as they require more time to set up and they can be more visually imposing – NOT the effect you want! But for Airbnbs, canopy beds could be the perfect thing to add romance and interest to a room.

Photo and staging by Staging Studio.

Color and Pattern Drenching

Color drenching trended in 2024 and it isn’t going anywhere in 2025. Drenching is when walls, trim, and sometimes ceilings are painted in a single hue. It provides a cohesive, immersive experience that can make a room feel larger and more intentional.

Photo and design by Staging Studio.

Not only is color drenching still in, but pattern drenching is on the list too. In most cases, pattern drenching may be too taste-specific for staging, but consider it for making a statement in design and short-term rental projects.

Playful Maximalism

Fun is on trend! Think contrast trim, mix-and-match bold patterns, eclectic prints, and more color.

Photo by Canva AI.

At Las Vegas Market, we saw many neutral aesthetic games used as decor, like dice, tic-tac-toe, and stacking blocks. We bought some on Amazon and they’ve been a hit at our stages!

Photos and staging by Staging Studio.

Clustered Coffee Tables

Clustered and nested coffee tables are dominating luxury living room layouts, adding movement, scale, and visual interest.

Photo and staging by Staging Studio.

Nested coffee tables have been trending, but start thinking about it as a cluster of tables. The photo below (AI, so not perfect) is close to this idea. Take this and add another smaller table to join the bunch!

Photo by Canva AI

This trend aligns with playful maximalism, where design elements don't just serve a function, but also contribute to the room's overall artistry.

Other 2025 Design Trends to Watch

A few other trends we’re seeing are terracotta (did it ever really go away?), round stools (these are perfect for stagers because they’re easy to store in the warehouse!), and extra long lumbar pillows. Shag rugs are making a return, and the boucle trend isn't going anywhere this year.

These 2025 design trends encourage boldness, personality, and a mix of textures, colors, and eras. By integrating dark cherry red accents, incorporating maximalist elements, and balancing vintage with modern, you can create striking, memorable spaces that capture the imaginations of buyers and travelers.2025 Interior Design and Home Staging Trends

CMHC projects home sales, prices will rebound in 2025 – but more severe tariffs than expected could complicate the picture

By Fergal McAlinden
05 Feb. 2025

Falling mortgage rates and new mortgage rule changes are expected to help spark a rebound in home prices and sales in the coming years, although the recovery could be an uneven one – and housing starts are set to continue slowing between now and 2027.

That’s according to Canada Mortgage and Housing Corporation (CMHC), whose housing market outlook for the year ahead highlighted the “significant uncertainty” to the Canadian economy of threatened US tariffs but said improving affordability would boost homebuyer prospects in its medium scenario for a potential trade war.

That projection assumes US tariffs of 25% on 10% of Canadian goods and retaliatory measures by Canada, with lower immigration in the coming years also likely to contribute to “modest” economic growth this year before improving in 2026 and 2027.

But a tariff dispute of that intensity wouldn’t crater Canada’s housing market, CMHC suggested. “Despite the economic headwinds… we expect housing market activity in Canada to improve,” the agency’s top economists wrote. “The combination of lower mortgage rates and changes to mortgage rules introduced in 2024 should unlock pent-up demand from homebuyers previously priced out of the market.

“However, some of these homebuyers may face longer loan terms, higher interest costs over the duration of the loan and larger downpayments as prices continue to rise.”

The federal government tweaked mortgage rules last year to allow expanded access to 30-year amortizations for first-time buyers and Canadians purchasing newbuilds, while it also hiked the insured mortgage cap to $1.5 million in a bid to improve purchasing power.

Millennials are likely to remain a key driver of housing demand in 2025, CMHC said, with a decline in remote work and stepping up of companies’ return-to-office efforts potentially seeing that buyer cohort prioritize being closer to jobs and boosting sales in large urban markets.

Affordability challenges show no signs of easing in major cities

However, the affordability picture isn’t positive across the board. CMHC’s report said Alberta and Quebec would see sales reach “historically high levels” with prices potentially surging – but Ontario and British Columbia sales could stay below 10-year averages because of current eyewatering home prices and the outsized impact there of lower immigration.

The condo market’s struggles also show little sign of easing. Activity in that sector is projected to continue lagging – particularly in regions more dependent on investor activity. “Investors who bought pre-construction units to rent out are increasingly selling as costs rise faster than rental incomes,” CMHC said.

“We expect listings to continue to increase, driven by record new condominium apartment completions in 2025 and softening rental markets.”

Millions of new units are required by 2030 to restore affordability across Canada’s housing market, but housing starts are projected to slow further in the years ahead, according to CMHC.

While starts are set to remain above their 10-year average, that slump in condo construction is expected to weigh heavily against the construction outlook as investor interest wanes and families turn toward more “family-friendly” properties.

Tariff threat continues to loom large over Canada’s economy

CMHC’s medium expectation for a trade war would see the housing market stave off threats of a crash – but its worst- and best-case scenarios don’t exactly suggest a housing meltdown is imminent, either.

Higher tariffs on Canadian exports could see job losses and a 2025 recession, the agency said, while a trade war could result in a short-term jump in inflation but a lower Bank of Canada policy rate to boost the economy.

While a recession would delay a housing market recovery, it would also see pent-up demand swell, according to CMHC. Fewer homes may be built, but the economy would be likely to rebound by the end of 2026 as population growth spurs further sales.

In the opposite scenario, in which the US would impose milder and short-lived tariffs, higher incomes and stronger consumer confidence could boost spending. In that case, “stronger declines in borrowing costs make homeownership more attainable,” CMHC’s report said.

“More homes are built thanks to better financing and business conditions. Stronger job and income growth combined with lower mortgage rates make homeownership more accessible. Higher demand pushes home prices up more quickly.”

The depth and severity of potential US tariffs remains to be seen, with US president Donald Trump and Canada’s prime minister Justin Trudeau striking a deal on Monday to stave off a trade war for at least 30 days.

Ontario premier says Canadian officials doing 'everything they can' to convince US to drop Canada tariffs

By Fergal McAlinden

03 Feb. 2025

Mexican president Claudia Sheinbaum said Donald Trump has agreed to pause 25% tariffs on her country for a month, while Canadian prime minister Justin Trudeau is scheduled to speak with the US president for the second time today at 3:00 p.m. ET.  

Sheinbaum said she had had a “good conversation” with Trump on Monday morning, resulting in a delay to the massive levies announced by the White House that were scheduled to come into effect tomorrow (February 4). 

Trump had accused Sheinbaum’s government of entering an “intolerable alliance” with Mexican crime gangs, triggering a sharp rebuke from Mexico’s president – but she said today she has reached a number of agreements with Trump including the dispatchment of 10,000 Mexican national guard members to the border to clamp down on drug trafficking.  

The news has sparked speculation that Trudeau will call for a similar delay to Trump’s tariffs on Canada, which are also set to take effect tomorrow. On Saturday, Trump announced 25% levies on all Canadian imports to the US except energy, which was charged at 10%.  

Trudeau responded with countermeasures on US products entering Canada, introducing 25% tariffs on billions of dollars’ worth of American imports to the country.  

The trade spat has roiled markets and raised fears of a recession, with National Bank of Canada arguing the crisis could call for an emergency oversized rate cut by the Bank of Canada in the weeks ahead.  

Trudeau spoke with Trump this morning, and Ontario premier Doug Ford said he hopes the US president will follow his reversal on Mexico with a similar decision on Canadian tariffs.  

“We’re their number one customer. We’re their number one export destination,” Ford said on Monday, indicating Canadian officials were doing “everything they can” to reach an agreement with the US.  

“We’re working governor to premier, premier to senator and congresspeople, and all premiers are doing it. They’re reaching out to their counterparts,” he said. “And we’re doing our job. And I know the prime minister is doing his job by contacting President Trump today and later this afternoon.  

“That decision President Trump has made is so, so misguided. He underestimates the power and the will and the fortitude of Canadians. We’re their closest trading partner and ally.”  

Canada enters a new reality this week after huge US levies on Canadian imports

By Fergal McAlinden

03 Feb. 2025

It’s been the single biggest imponderable looming over the Canadian economy in early 2025 – and US tariffs became a reality on Saturday when Donald Trump introduced massive charges on Canadian goods crossing the border southwards.

That action, which includes 25% levies on all Canadian imports excluding energy – which was tariffed at 10% – has cast huge uncertainty over Canada’s economic outlook and sparked fears of a potential hammer blow to the loonie.

Its effect on Canada’s housing market remains to be seen. Last week, Bank of Montreal (BMO) chief economist Doug Porter (pictured top) told Canadian Mortgage Professional that the Bank of Canada would likely slash interest rates further if US tariffs began to weigh down heavily on the Canadian economy, meaning potential borrowing costs could end up even lower than first anticipated for the year ahead.

But the severity of Trump’s measures – and Canada’s response, which included retaliatory tariffs on billions of dollars’ worth of American goods – leaves plenty in doubt about whether the housing market will suffer from wider economic strain.

Intensity of potential trade war remains a key unknown

Speaking days before Trump confirmed the tariffs would go ahead, Porter suggested a “light trade war” could boost the Canadian housing market, but emphasized it would probably be damaged by anything more intense.

“Even though the Bank is a bit mixed [on being prepared to cut rates], I think at the end of the day it means lower interest rates than would otherwise be the case,” Porter told Canadian Mortgage Professional. “And of course, the housing market is the most interest rate-sensitive sector of the economy. In general, I don’t think a trade war would have much direct impact.

“What I would be worried about is if the Canadian economy were really wounded badly by a trade war, then that could actually work its way back into the housing market and clip demand as well. The threat to the housing market would be the indirect effect of a weaker economy.”

After the tariffs were announced, Porter said the trade war would likely reduce Canada’s GDP growth by around two percentage points and could slide the economy into a “modest recession” if those measures remained in place for a year.

The Bank of Canada is also likely to slash its policy rate by a quarter-point at every meeting until October, he said, bringing it down from its current level to 1.5%.

US tariffs and countermeasures are likely to see the cost of materials for home construction jump on both sides of the border. But Porter said that wouldn’t necessarily harm Canada’s housing outlook significantly.

“Some building materials could face tariffs, when you think of things like plumbing supplies. But a lot of things can be produced here too or already are produced here,” he said. “The costliest part of building a house is land and labour – less so some of the supplies. So I don’t think it will have too negative an effect on the housing market.”

How is the housing market poised after the BoC’s actions to date?

US president Donald Trump first announced the tariff plans in November, a bolt out of the blue that roiled markets and sent the Canadian dollar plunging.

The reasons Trump has given for those proposed measures have varied. Initially, he claimed Canada’s border security was too lax, while last week he said Canada and Mexico “have never been good” to the US on trade matters.

His claims have been refuted by observers including former Canadian prime minister Stephen Harper, who said he had a “real problem” with some of Trump’s pronouncements on Canada.

Those threats have been mentioned in each of the Bank of Canada’s last two interest rate announcements, a 50-basis-point cut in December and a quarter-point snip last week.

The Bank’s statement after reaching its decision on Wednesday noted the resilience of the Canadian economy could come under strain with the imposition of “broad-based and significant” US tariffs.

That rate reduction alone will do little to spur activity in Canada’s housing market, Porter said, although he sounded a positive overall note on its 2025 prospects despite the prospect of lower immigration this year than first planned.

“We’ve now had two percentage points of total easing by the Bank of Canada [since last June],” he said. “That’s a very aggressive move by the Bank in a short period of time, and a clear positive for the housing market. Heading into this, the housing market looked as if it was getting back on its feet. I wouldn’t say it was strong, but it was relatively well-balanced.

“It has had the very strong population growth support knocked out from underneath it – but I think interest rates are a more important story for the housing market. I’d still be mildly constructive on the housing market this year, even with the threat of a trade war.”

Refinancing your mortgage can be a smart financial move for many reasons, and as your trusted mortgage advisor, I’ve seen how much it can benefit homeowners!

Ideally, refinancing is done at the end of your mortgage term to avoid penalties, but the timing can vary depending on your goals. For some, it’s about unlocking the equity in their home to fund renovations or cover big expenses like college tuition. For others, it’s an opportunity to consolidate debt, lower their interest rate, or change up their mortgage product.

Let’s take a closer look at some of the ways refinancing your mortgage can help!

• Get a Better Rate: As interest rates have continued to decrease with the Bank of Canada updates these past few months, now is a great time to consider refinancing for a better rate and lower overall mortgage payments!  Experts anticipate the Bank of Canada will move to have the overnight rate down to 4.0% at year-end and potentially down to 2.75% for 2025.

• Consolidate Debt: When it comes to renewal season and considering a refinance, this is a great time to review your existing debt and determine whether or not you want to consolidate it onto your mortgage. In most cases, the interest rate on your mortgage is less than you would be charged with credit card companies or other forms of financing you may have. Plus, having all your debt consolidated into a single payment can keep you on track!

• Unlock Your Home Equity: Do you have projects around the house you’ve been dying to get started on? Need funds for a large purchase such as a new vehicle or post-secondary education? When you are looking to renew your mortgage, it is a great opportunity to consider refinancing in order to take advantage of the home equity you have built up to help with these larger changes in your life!

• Change Your Mortgage Product: Are you unhappy with your existing mortgage product? If you have a variable-rate or adjustable-rate mortgage, you may be considering locking it in at the lower rates. Alternatively, you may want to switch your current fixed-rate mortgage to a variable option with the interest rates expected to continue decreasing into 2025. You can also utilize your refinance to take advantage of a different payment or amortization schedule to help pay off your mortgage faster!

PLUS! Some latest changes by the Government of Canada will make it even easier for you when it comes to your renewal and refinancing options:

• Those of you who may have an uninsured mortgage will no longer have to pass the stress test as of November 21st. This means that you have more flexibility when it comes to rates and mortgage products in renewal cases where you wish to switch lenders without adding additional funds to your mortgage!

• Beginning January 15, the federal government will allow default-insured mortgages to be refinanced to build a secondary suite. If you’ve been considering adding a suite to your property, you may be eligible to access up to 90% of your home’s equity for this purpose.

No matter your plans or situation, please don’t hesitate to reach out to a DLC Mortgage Expert! Our own Charlotte Ferguson is a licensed Mortgage Agent, Level 2, and is happy to help!  https://yourmagnoliagroup.ca/MortgageAgent

Inflation, labour market and Trump threats all hovered over central banks’ January move

By Fergal McAlinden
29 Jan. 2025

The Bank of Canada has lowered its benchmark rate again, making a sixth consecutive cut amid continuing signs of a slowing economy and falling inflation.

The central bank said on Wednesday morning that it had trimmed the key rate by 25 basis points, a move that brings it to 3% but also marks a smaller reduction than its previous two cuts.

That decision arrives after the annual inflation rate dropped to 1.8% in December, just below the Bank’s 2% target, spurred in large part by the federal government’s temporary GST break.

Without that tax break, overall inflation would have jumped to 2.3% – but while the labour market appeared to strengthen in December, adding a better-than-expected 91,000 jobs, the threat of tariffs on Canada by new US president Donald Trump kept a January rate cut firmly on the table.

Bank decisionmakers slashed rates by 50 points in both October and December, with governor Tiff Macklem describing Trump’s tariff threats as a “major new source of uncertainty” last month and underlining the potential they posed for significant disruption to both the US and Canadian economies.

The president has doubled down on threats to introduce tariffs on Canadian goods crossing into the US, saying he’ll impose the measures beginning on February 1 in line with similar levies against Mexico.

Economists have warned of the huge negative impact that move could have on the Canadian economy, although whether or not Trump plans to follow through with the threat remains unclear.

Bank of Canada’s benchmark continues to tumble from 23-year high

The Bank of Canada’s benchmark rate has now fallen by a full two percentage points since the middle of last year. The central bank introduced a flurry of rate hikes throughout 2022 and 2023 in a bid to curb a spike in inflation – and after holding that rate steady at 5.0% for nearly a year, its highest level since 2001, it began cutting last June.

Macklem indicated in December that the Bank was likely to begin moving at a more cautious pace in 2025, although Trump’s threats could now weigh heavily in the central bank’s thinking as it maps out its approach for the months ahead.

The Bank is scheduled to announce its next decision on rates on March 29, followed by six further decisions throughout the year.