Trade tensions prompt Canadian buyers to retreat from US real estate, shift focus to domestic assets
Millions of dollars may be redirected into the Canadian real estate market as more Canadians withdraw from purchasing US properties, according to the Financial Post.
Canadians have historically been the largest group of foreign buyers in the US, purchasing 7,100 homes in 2024, mostly in vacation destinations, as noted in the National Association of Realtors’ 2024 report.
However, recent trade tensions have triggered a shift, with more Canadians looking inward.
A report from RAM Development Group found that 81 percent of Canadians now aim to keep their money within the country. Among respondents, 34 percent stated their shift in spending would be permanent.
Zoocasa Inc. projected that if 100 Canadian buyers exited one US state, it would lead to a transaction volume loss of $80m.
Between 2019 and 2024, Canadian purchases of US property declined at an average annual rate of 14.5 percent.
The 7,100 homes purchased in 2024 marked the lowest point in 15 years, falling below numbers recorded during the COVID-19 pandemic.
Should the retreat continue, Florida could face a US$653m drop in transaction volume within two years, and Arizona could see a $366m decline.
According to Zoocasa, other destinations like Hawaii, California, and New York may also lose hundreds of millions if Canadian buyers maintain their current trajectory.
An April survey conducted by Humi Inc. found that 50 percent of Canadians considering a US move are now rethinking those plans due to Canada–US tensions.
The Canadian retreat could boost Canada’s sluggish housing market. Zoocasa predicted that the domestic recreational property segment may benefit, particularly in vacation areas.
“While returning buyers could add to competition in already tight markets, many are likely to be retirees or snowbirds who would focus their purchases in vacation areas,” Zoocasa stated. “This could revive Ontario’s cottage country, which has seen a slow start to the year.”
Royal LePage’s 2025 Spring Recreational Property Report forecast a four percent rise in mean Canadian cottage prices and reported that 70 percent of brokers are seeing demand levels equal to or higher than last year.
While some Canadians are turning away from the US, Zoocasa noted that others may instead seek property outside both Canada and the US.
Amid these shifts, the US Congress introduced the Canadian Snowbird Visa Act on April 29.
The bill would allow Canadian citizens who own or lease US property to stay up to 240 days annually — an increase from the current 182-day limit.
According to a statement sent to National Post, the Canadian Snowbird Association (CSA), which represents 100,000 members, said it has worked with US lawmakers on the act’s reintroduction.
CSA stated: “Canada is the largest international tourism market in the United States, with annual spending in excess of US$20bn. This policy is a step in right direction as it recognizes the pivotal impact Canadian snowbirds have on the US sunbelt.”
Congressman Ken Calvert, representing part of the Coachella Valley, said the act would support economic growth and employment, pointing out that Canadians own about 7 percent of all homes in the area.
In Florida, Congresswoman Laurel Lee and Governor Ron DeSantis have both highlighted the economic contributions of Canadians.
Florida hosted 3.3 million Canadian visitors in 2024, and DeSantis claimed the state's economy would suffer if foreign nationals continue to depart due to new policies requiring registration for stays beyond 30 days.
Some Canadians have already responded. According to Gulf Coast News, one Canadian property owner left Fort Myers in early April, while another family said they would not return.
In California, Governor Gavin Newsom launched a campaign to attract Canadian visitors after 1.8 million Canadians spent US$3.72bn in the state last year.
Congresswoman Elise Stefanik from New York stated that Canada contributes more visits to the US than any other country. As per New York City Tourism + Conventions, about one million Canadians visited New York last year.
The proposed Snowbird Visa Act retains safeguards: it prohibits employment with US firms, prevents access to public assistance, and maintains nonresident tax status.
The accompanying news release stated that the bill “reflects a shared commitment to supporting local economies, rebuilding cross-border tourism, and strengthening the US–Canada relationship through smart, targeted immigration policy.”
