Declining Interest in U.S. Homes
Search traffic from Canada to U.S. real estate listings dropped 26.4% year-over-year in May 2025, marking the fourth consecutive month of double-digit declines.(turn0search11)
Earlier in April, declines were even sharper—reaching about 34.2%, coinciding with the announcement of U.S. tariffs.(turn0search11)
- Historical Context & Financial Impact
Canadians represent the largest group of foreign buyers in the U.S., accounting for approximately 13% of all international home purchases, totaling $5.9 billion spent between April 2023 and March 2024.(turn0search11)
The steep decline in interest poses notable economic repercussions:
Florida could see a potential $2.4 billion drop in real estate transactions if Canadian buyers continue to withdraw.
Arizona may face around a $1.3 billion decline, with similar—but smaller—impacts expected in Hawaii and California.(turn0search0)
- Underlying Causes
Several strategic and economic factors are driving Canadian investors away from U.S. real estate:
Trade tensions: U.S. tariffs—like the 25% on certain Canadian goods—and an unpredictable political climate have heightened uncertainty.(turn0news17)
Weaker Canadian dollar: Making U.S. properties more expensive when purchased with CAD.(turn0search11)
Perception of unwelcome sentiment: Rising politicization and unfriendly rhetoric toward Canada have made some buyers feel uncomfortable owning U.S. assets.(turn0news18, turn0news19)
COVID-era slowdown in buyers is worsening: Canadian interest hasn’t rebounded as other foreign markets have, shifting behaviors and demand patterns.(turn0news15)
- Broader Market Shifts
While Canadian outflows are significant, overall foreign investment in U.S. real estate rose by 44% from April 2024 to March 2025, with total foreign purchases reaching 78,100 homes.(turn0news15)
However, the data precedes recent geopolitical disruptions and may not fully capture the ongoing retreat from Canadian buyers.