According to Redfin’s latest market report, the share of Canadians searching for US properties declined 19.5 per cent year over year in August, marking the seventh consecutive month of decreasing interest since President Trump announced a 25 per cent tariff on Canadian goods in February.
The decline in Canadian interest has affected 46 of the 50 largest US markets, with Florida destinations experiencing some of the steepest drops.
West Palm Beach saw searches decline by 26.6 per cent, while Tampa and Orlando experienced drops of 23.1 per cent and 23 per cent respectively.
Other major markets feeling the impact include Anaheim, Columbus, Detroit, Los Angeles, San Diego, Washington D.C., and New York, all recording decreases of more than 22 per cent.
The Trump administration raised tariffs on Canadian goods to 35 per cent in July, exempting only products covered by the United States-Mexico-Canada Agreement.
Despite wood being protected under this agreement, homebuilders are still paying duties of 27.3 per cent on Canadian lumber.
Las Vegas-based Redfin partner Cheryl Van Elsis has witnessed this trend firsthand among her clients.
“One Canadian client is in the process of selling his last U.S. property because he no longer sees it as a good place to invest or vacation,” she said.
“He used to own four homes in the Las Vegas area, which he mainly rented to fellow Canadians here for casinos or poker events. But now, he no longer wants ties to the U.S.”
Beyond tariffs, other factors contributing to the decline include rising insurance premiums, homeowners association fees, and property taxes in popular destinations like Florida.
The weakness of the Canadian dollar presents another challenge, with the current exchange rate showing that 1 USD equals 0.72 CAD.
The poor rate makes US properties increasingly unaffordable for Canadian buyers.
The impact extends beyond just the real estate market.
The National Association of Home Builders (NAHB) has reported that tariffs are exacerbating housing affordability issues across the US.
According to their analysis, the typical new single-family home requires 15,000 board feet of framing lumber, 6,800 square feet of oriented strand board, and 2,200 square feet of plywood.
The NAHB estimates that previous tariff policies led to a US$30,000 increase in the price of a typical new single-family home, as costs for lumber, concrete, gypsum, steel, and power transformers have increased by double digits since 2021.
