Canadian interest in U.S. real estate is cooling as new trade tariffs and a weaker currency weigh on cross-border investment. Between July and September 2025, Canadians still accounted for just over 30 per cent of all international traffic on U.S. property portal Realtor.com, down from 36.6 per cent a year earlier.
Despite the decline, they remain the largest group of overseas property shoppers in America, far ahead of buyers from the United Kingdom and Mexico, who made up 6.5 per cent and 5.6 per cent of international searches respectively.
The NY Post reports the pullback coincides with a period of heightened trade tension between the two countries.
In August, the U.S. increased tariffs on Canadian imports to as much as 35 per cent, while further levies were introduced on timber, furniture and cabinetry.
Although most U.S.–Canada trade remains exempt, the policy shift has unsettled some investors. Realtor.com economist Jiayi Xu said the timing of the drop in property interest directly aligned with the introduction of the tariffs.
A weaker Canadian dollar has also reduced purchasing power, effectively increasing the cost of buying in the U.S.
For some, the combination of tariffs, currency pressure and rising insurance premiums, particularly in hurricane-prone states such as Florida, has prompted a pause in property searches.
Still, for many Canadians, the appeal of sunshine and affordability continues to outweigh those concerns.
Cape Coral in Florida, often dubbed the “Venice of America,” remains one of the most popular destinations.
Canadians made up 61.4 per cent of international real estate traffic for the city during the September quarter, drawn by its 400 miles of canals, boating lifestyle and waterfront homes that are still considered relatively affordable.
The average sale price for a single-family home there now exceeds US$941,000, (roughly AUD $1.45 million). Many buyers favour open-plan layouts, large yards and outdoor entertaining areas that fit with the region’s warm-weather lifestyle.
In the desert southwest, Phoenix, Arizona has also remained a firm favourite. Canadians accounted for 61 per cent of international views there, attracted by the lower property taxes, strong rental potential and proximity to Canada via direct flights from major cities such as Calgary, Vancouver and Toronto.
Most Canadian buyers are seeking “lock-and-leave” homes—condos, patio houses and single-level dwellings priced between US$400,000 and US $800,000, or (AUD $615,000 to AUD $1.23 million).
