Canadian homebuyers are increasingly turning away from U.S. housing markets amid the ongoing tariff dispute between the two countries, but despite the pullback, Canadians continue to account for the largest share of international demand.
Between July and September, Canadian house hunters handily topped the list of foreign property buyers in the U.S., making up nearly a third of international traffic on Realtor.com®, according to the latest quarterly International Demand report.
For context, the second-largest contingent of overseas investors—shoppers from the U.K.—accounted for a fraction of Canada’s demand, at just 6.5% of the traffic, followed by Mexican buyers, at 5.6%.
However, year-over-year data suggests that Canadians are gradually losing interest in stateside vacation homes and investment properties, with online shopping traffic from Canada declining 4.5 percentage points—from 36.6% in Q3 2024 to 32.1% in Q3 2025.
“This retreat coincided with the period during which the U.S. imposed a series of tariffs on Canadian goods, sharply adjusting prior trade relations with the neighbor to the North,” says Realtor.com economist Jiayi Xu.
In August, President Donald Trump raised tariffs on Canadian imports to 35%, but due to an exemption, 85% of all U.S-Canada trade has remained tariff free.
Then in mid-October, a 10% tariff on all timber and lumber from Canada went into effect, in addition to a 25% levy on cabinets and furniture.
And last weekend, Trump said he was slapping an additional tariff of “more than 10%” on Canada in retaliation for the government of Ontario’s ad criticizing America’s trade policies.
“The Venice of America” still attracts Canadians
Canadian snowbirds willing to look past the difficult geopolitical climate were disproportionately drawn to America’s sunny destinations offering refuge from their homeland’s bitterly cold winters.
Among the most popular markets, Canadian buyers dominated the international traffic to Cape Coral, FL, making up 61.4% of the metro’s foreign demand.
Karen Borrelli, president of Royal Palm Coast Realtor® Association, tells Realtor.com that while there have been fewer home sales to Canadians so far this year compared to the same period in 2024, America’s northern neighbors continued to dominate the market among international buyers.
“The consensus is that we are still seeing the Canadians who love the Cape Coral lifestyle,” says Borrelli, referencing her recent conversations with local real estate professionals.
Nicknamed “the Venice of America,” Cape Coral features over 400 miles of canals, many of them with golf course access, making it an attractive waterfront living destination that is still relatively affordable, according to Borrelli.
“What the draw is the fact that you could have your boat right in your backyard, load up, go out,” adds Borrelli. “You could go down to Key West or up to Tampa, so it’s a boating destination.”
For those not interested in spending their days out on the water, Cape Coral boasts nearly 40 parks, pickleball courts, and family attractions like go-karts and mini golf.
According to the latest data from Royal Palm Coast Realtor Association, 1,100 single-family homes in the city are currently owned by Canadian nationals, with the average sale price topping $941,000.
The typical Canadian buyer in Cape Coral favors single-family homes with open floor plans and sprawling yards, complete with outdoor fireplaces and kitchens.
Borrelli says that while attending a trade show in Toronto earlier this year, she heard mixed opinions from Canadians about buying real estate in Florida.
“There were a lot of Canadians who said that they would no longer be going to Florida,” she says. “They were choosing Mexico instead. But then there was about just as many that said they loved Florida and they wouldn’t go anywhere else, no matter what.”
The real estate association president attributes this ambivalence to new tariffs, a weaker Canadian dollar, and Florida’s hurricane-driven home insurance woes, but Borrelli remains optimistic about the future.
“Canadians have been coming to this area for so long that it’s sort of a cycle,” she explains. “I think as long as people want to come to sunshine … I think that they’ll continue to purchase here.”
Hot desert destination beckons
Located 2,300 miles west of Cape Coral in the heart of the Sonoran Desert, Phoenix was the second-hottest destination for Canadians, who accounted for 61% of international views in Q3.
“Phoenix has long been a favorite among Canadian homebuyers because it combines great weather, accessibility and value,” Christy Walker, president of Phoenix REALTORS® Board of Directors, tells Realtor.com. “The Valley’s warm winters and abundant golf courses make it an ideal seasonal retreat, while direct flights from cities like Calgary, Vancouver, and Toronto make travel effortless.”
Compared to popular coastal states like California or Florida, the cost of living and property taxes in Phoenix are more budget-friendly, allowing foreign buyers to stretch their investment dollars further.
Walker says most Canadians shopping for homes in Phoenix look for what she calls “lock-and-leave” properties that are easy to maintain and come with amenities.
“Condos, patio homes, and single-level houses in areas like Scottsdale, Chandler, and North Phoenix tend to be top choices,” she says. “The sweet spot for many buyers ranges between $400,000 and $800,000, offering luxury finishes without the premium of coastal markets.”
Similar to Cape Coral, Walker concedes that in Phoenix, tariffs and a fluctuating Canadian dollar have created what she describes as “some short-term caution,” but she stresses that serious buyers from the north remain undeterred.
“Many of these clients plan years ahead and see Phoenix as a secure, appreciating market compared to other investment options,” says Walker. “The region’s stability, strong rental potential, and relatively low property taxes continue to outweigh temporary policy concerns.”
However, the board president notes that the chilly U.S.-Canada relations cannot be entirely overlooked when discussing international real estate demand.
“If anything is a deterrent, it has more to do with the perceived relations between the U.S. and Canada, since they want to know if something changes that they will have a good exit strategy,” notes Walker.
But for most Canadian house hunters, the advantages outshine the potential drawbacks.
“While some Canadians express hesitation about investing in the U.S. due to political shifts or the feeling of being treated like the ’51st state,’ those concerns rarely outweigh the benefits of owning property in Phoenix,” points out Walker. “Most Canadian buyers recognize that Phoenix offers stability, a healthy economy, and an unmatched lifestyle that can’t be duplicated back home during the winter months.”
North Port, FL, clinched the third spot on the list of the most in-demand markets among Canadian home shoppers, with 58.8% of traffic, but that represented a drop of 6 percentage points from a year ago. Affordable Detroit came in fourth, commanding 51.4% of views from Canadian buyers.
Overall, the share of international views from Canada eased across all the most popular markets in Q3 year over year.
Miami is the top market for foreign buyers
In late summer and early fall of this year, foreign real estate buyers made up 1.5% of online demand, down slightly from 1.6% a year ago.
Perhaps unsurprisingly, Miami was the No. 1 market for international buyers, drawing 8.4% of online traffic from abroad thanks to its vibrant oceanfront lifestyle and luxury condominiums.
The typical home viewed by foreign shoppers came with an asking price of about $546,600, or nearly $50,000 higher than the city’s median list price for September.
“These incoming transplants are overwhelmingly choosing new, prime product and are pouring cash into the market,” Ana Bozovic, a Miami-based real estate agent and founder of Analytics Miami, tells Realtor.com. “And it is important to note that compared to other global capitals, Miami remains a relative value. Even after post-COVID price growth, you still get more on a per-square-foot basis here than in New York.”
Other high-priced metros long popular with the international crowd continued attracting attention, with New York, NY grabbing 8.4% of the traffic share, followed by Los Angeles, at 4.8%.
“International buyers typically focus on higher-end homes, driven by investment potential, high-income employment, or lifestyle considerations,” says Xu. “Consequently, their shopping preferences often differ from those of domestic homebuyers.”
For example, in L.A., the median price of homes perused by overseas buyers online was a staggering 173.6% higher than that viewed by U.S. buyers.