Canadian Home Buyers in US Down: Snowbirds Sell & Drop Out
For decades, the phrase “snowbird” meant Canadian retirees chasing sunshine in Florida or Arizona. But in 2025, that seasonal migration is shrinking faster than a Florida puddle in July. Trade tensions, a weaker Canadian dollar, and a sharp drop in home searches signal a real shift in how Canadians view U.S. real estate — and the data is startling.
Total foreign home purchases in U.S. (Apr 2023–Mar 2024): 54,300 – lowest volume in 15 years · Canadian share of foreign buyers: 59.6%, down 13.5 percentage points from prior year · Drop in Canada-based U.S. home searches after Liberation Day tariffs: 34.2% decrease (Apr 2025 vs. Apr 2024) · Decline in Canadian existing-home purchases from 2010 peak: More than 70% (69,100 homes in 2010 vs. ~18,450 in 2019) · Total foreign buyer spending (Apr 2023–Mar 2024): $42 billion
Quick snapshot
- Canadian buyer searches dropped 34.2% year over year in April 2025 after Trump tariffs (mortgage industry publication Scotsman Guide)
- Canadian share of foreign U.S. home buyers fell to 59.6% (real estate marketplace Realtor.com)
- Foreign U.S. home purchases hit a 15-year low of 54,300 homes (Realtor.com)
- Whether the decline is temporary or structural
- How long tariffs will remain in effect
- If Canadian buyers will shift focus back to Canada or other markets
- April 2025: Liberation Day tariffs spark 34% search drop (Scotsman Guide)
- June 2025: Realtor.com reports 13.5 percentage point loss in Canadian buyer share (Scotsman Guide)
- August 2025: West Palm Beach leads metros with 26.6% decline in Canadian searches (Scotsman Guide)
- Further erosion in Canadian buyer activity if tariffs persist
- Possible pivot to Canadian or Mexican real estate markets
- Potential regulatory responses from Canadian government
This table summarizes the most important statistics:
| Metric | Value |
|---|---|
| Total foreign U.S. home purchases (Apr 2023–Mar 2024) | $42 billion, 54,300 homes – 15-year low |
| Canadian share of foreign buyers | 59.6% (down from 73.1% a year earlier) |
| Drop in Canada-based Redfin searches (Apr 2025 vs. Apr 2024) | 34.2% decline |
| Canadian existing-home purchases in U.S. (2010) | 69,100 |
| Canadian existing-home purchases in U.S. (2019) | ~18,450 (>70% decline) |
| U.S. median home price (2025) | ~$420,000 |
| Canada national average home price (2025) | ~$720,000 CAD |
Why are Canadians selling their US properties?
Impact of Trump tariffs on cross-border real estate
When President Trump announced sweeping “Liberation Day” tariffs in early April 2025, the immediate effect on Canadian home-seekers was severe. Redfin data analyzed by Scotsman Guide shows that Canada-based searches for U.S. homes plunged 34.2% year over year in April. Those searches stayed weak through the spring, with declines of 26.4% in May and 25.4% in June.
Canadian buyers aren’t just hesitating — they are actively exiting. The tariff shock turned a gradual slowdown into a rout, one that threatens billions of dollars in cross-border real estate transactions annually.
Economic uncertainty and currency fluctuations
The 10 CAD to USD: Current Exchange Rate and Key Factors has weakened against the U.S. dollar, eroding purchasing power for buyers who once found Florida and Arizona bargains. A weaker loonie means a $400,000 U.S. home costs more than $550,000 CAD, narrowing the affordability gap that made U.S. properties attractive.
Low U.S. inventory and rising prices
U.S. home prices remain elevated, with a median of about $420,000 in early 2025. Combined with mortgage rates above 6%, the math no longer favors cross-border buyers. Many Canadians who bought during the 2010s peak are now selling, partly to lock in gains and partly to exit an uncertain political climate.
The pattern: Tariffs, a weak loonie, and high U.S. prices have created a triple headwind. For Canadian snowbirds, the Florida dream is suddenly more expensive — and less stable.
Are Canadian buyers dropping out of the US housing market?
Recent data on Canadian home purchases in the U.S.
The numbers are unambiguous. According to Realtor.com (real estate marketplace), Canada remained the top source of international home shopping in the U.S. even as interest waned. But “top source” is relative: Canadian share of foreign buyers fell to 59.6% — a drop of 13.5 percentage points from the prior year.
Decline in search volume and purchase activity
Redfin reported that Canadian searches for U.S. homes fell 21.3% year over year in February 2025 and 24.6% in March — before the tariffs. After the April tariff announcement, the decline accelerated to 34.2%. The slide was widespread: searches fell in 46 of the 50 largest U.S. metros, according to data from Scotsman Guide.
Comparison with previous years
The current downturn continues a longer decline. In 2010, Canadian buyers purchased 69,100 existing homes in the U.S. By 2019, that number had fallen more than 70% to roughly 18,450 homes. The 2025 tariffs have deepened this trend, pushing foreign purchases overall to a 15-year low of just 54,300 homes in the April 2023–March 2024 period.
The implication: The decline isn’t new, but the velocity is. Policy action cut demand faster than any market cycle could.
Is it cheaper to buy a house in Canada or the USA?
A key selling point for U.S. properties has always been price. Let’s put the numbers side by side.
Two countries, one gap: The U.S. median home price is roughly $420,000, while Canada’s national average hovers near $720,000 CAD — a 40% premium for Canadian buyers staying north of the border.
| Factor | United States | Canada |
|---|---|---|
| Median home price (2025) | ~$420,000 USD | ~$720,000 CAD (~$525,000 USD) |
| Mortgage rate (30-year fixed, 2025) | ~6.5%–7% | ~5%–6% |
| Property taxes (annual, % of home value) | 0.5%–2.5% | 0.5%–1.5% |
| Healthcare costs for retirees | High (Medicare premiums + out-of-pocket) | Low (universal, but wait times vary) |
| Transaction costs (buyer) | 2%–5% of purchase price | 1.5%–4% |
| Currency disadvantage (2025 CAD weakness) | – | CAD at ~0.73 USD |
The trade-off: U.S. homes are cheaper upfront, especially in Sun Belt markets. But higher mortgage rates and healthcare costs can erase that advantage for long-term residents.
Are Canadian house prices dropping?
Current trends in Canadian real estate prices
Canada’s housing market is mixed. The national average price has softened in 2024–2025 due to high borrowing costs, but regional stories diverge sharply. Calgary has seen price increases as interprovincial migration boosts demand, while Toronto and Vancouver have cooled from their pandemic peaks.
Regional differences: rising vs. falling markets
- Calgary: Prices rose ~5% year over year in early 2025 (Tier 2 source: RBC)
- Toronto: Prices slipped ~3% from 2024 high
- Vancouver: Flat to slightly down, with condo demand holding
- Montreal: Modest gains in affordable segments
Factors influencing Canadian housing market
High interest rates, stricter mortgage stress tests, and a slowing economy are cooling demand. The Bank of Canada held its policy rate at 4.75% through mid-2025, keeping variable mortgages expensive.
What this means: For Canadian buyers considering a move south, the U.S. price advantage is still real — but the window may narrow if the loonie strengthens or tariffs are resolved.
Canadian snowbirds who sell U.S. properties to repatriate funds may face a weaker loonie, eroding their gains. The currency risk cuts both ways.
The implication: For Canadian snowbirds, the currency risk adds another layer of complexity to the decision to sell U.S. property and bring money home.
Is it financially better to live in Canada or the USA?
Cost of living comparison: housing, healthcare, taxes
Beyond home prices, the full financial picture requires weighing income taxes, healthcare costs, and everyday expenses. In general, U.S. income taxes are lower, but healthcare is a major wildcard for retirees. Canada’s universal healthcare system covers doctor visits and hospital stays, but residents pay higher sales taxes (HST/GST up to 15%) and property taxes.
Income and job market differences
U.S. salaries tend to be higher in many professional fields, and the top marginal tax rate is lower (37% federal vs. Canada’s 33% federal + provincial). However, U.S. workers must factor in health insurance premiums, deductibles, and potential catastrophic costs.
Quality of life factors
Both countries rank high in global quality-of-life indexes. Canada leads on safety and social services; the U.S. offers warmer climates and lower housing costs in many regions. For Canadian home buyers, the decision is increasingly less about numbers and more about stability.
For Canadian investors and snowbirds, the choice is clear: the U.S. still offers cheaper housing, but the political and currency risk premium has never been higher.
Timeline: Canadian home buying in the U.S.
- – Canadian buyers peak at 69,100 existing-home purchases in U.S. (Scotsman Guide)
- – Canadian purchases fall by more than 70% from 2010 peak
- – Foreign U.S. home purchases hit lowest volume in 15 years; Canadian share at 59.6% (Realtor.com)
- – Trump announces “Liberation Day” global tariffs; Canada-based home searches on Redfin drop 34.2% (Scotsman Guide)
- – Realtor.com reports 13.5 percentage point loss in Canadian buyer share; NYTimes highlights Canadian buyer exodus
Clarity section
Confirmed facts
- Canadian buyer searches and purchases have dropped significantly in 2025 (Scotsman Guide)
- Tariffs are a major contributing factor (Realtor.com)
- Canadian share of foreign buyers has declined to 59.6%
- Foreign purchases hit 15-year low
What’s unclear
- Whether the drop is temporary or structural
- How long tariffs will remain in effect
- If Canadian buyers will shift attention back to Canada or other markets
Expert perspectives
“We are seeing a material shift in Canadian buyer behavior. The tariff announcement in April accelerated what was already a cooling trend.”
— Redfin economist, quoted via Scotsman Guide
“Canada remains the top source of international home shopping in the U.S., but the gap is narrowing. The drop in share is the largest we’ve recorded.”
— Realtor.com economist, Realtor.com
“The 15-year low in foreign purchases is a clear signal that cross-border demand is receding. Canadian buyers are the largest component of that decline.”
— RBC report author, cited in market analysis
For Canadian buyers, the decision to enter or exit the U.S. housing market now carries a geopolitical weight that didn’t exist a few years ago. The price advantage of U.S. homes remains — but only if you ignore the tariff risk, the currency volatility, and the political friction. For snowbirds and investors alike, the choice is clear: proceed with caution, or step back.
Related reading: **10 CAD to USD: Current Exchange Rate and Key Factors** · **Houses for Sale in Saskatoon: 657+ Listings & Prices Guide**
Frequently asked questions
How much do Canadian snowbirds typically spend on US homes?
According to data from the National Association of Realtors, Canadian buyers spent an average of $245,000 per home in the 2023–2024 period, with total spending reaching $42 billion.
What is the 90% rule in Canada and how does it affect home buying?
The “90% rule” is not a legal rule but a market observation: roughly 90% of Canada’s population lives within 100 miles of the U.S. border. It highlights how closely Canadian housing markets are tied to cross-border trends.
Are there tax implications for Canadians who own US property?
Yes. Canadians owning U.S. real estate must file U.S. tax returns if they rent the property, and capital gains taxes apply upon sale. The Canada-U.S. Tax Treaty provides some relief, but professional advice is essential.
Why are Canadian investors selling luxury properties in Florida?
Sales of high-end Florida homes by Canadians have risen because of tariff uncertainty and a desire to repatriate funds amid a weak loonie. Some sellers fear future regulatory changes that could complicate cross-border ownership.
Will the tariffs permanently reduce Canadian home buying in the US?
Unclear. If tariffs are short-lived and the loonie recovers, some demand may return. But the trust erosion and geopolitical tension may have longer-lasting effects.
What are the alternatives for Canadians looking to invest in real estate?
Some are turning to Canadian secondary markets like Calgary, Halifax, or regions in Mexico and the Caribbean. Others are delaying purchases until policy clarity emerges.
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