Tariff spat continues to have big implications for US housing market
Rising political tension and policy shifts under President Donald Trump’s second administration are prompting more Canadians to pull out of the US real estate market, especially in vacation hotspots like Florida and Arizona.
Real estate professionals say there has been a sharp increase in Canadian owners listing their second homes this spring, citing a growing sense of unease about strained cross-border relations and an unpredictable US policy climate.
“We decided to sell the property after the current POTUS took office,” said Dale McMullen, an Alberta resident who, along with his wife Tracy, recently sold their vacation home in Buckeye, Arizona. “It was time to leave. We felt we could not trust what he might do next to us as individuals and to our country. We no longer felt welcome nor safe.”
The McMullens, who spent four to five months a year in Arizona over the past five years, are part of a broader trend of Canadians reconsidering their long-standing love affair with US real estate.
Canadians outspent other foreign real estate buyers in the US in 2024. According to the National Association of Realtors (NAR), Canadians spent nearly $6 billion on US property between April 2023 and March 2024, accounting for 13% of all foreign transactions, more than any other nationality. Nearly half of those purchases were made for vacation purposes.
Yet overall foreign investment in US real estate has dropped significantly, with total international purchases falling to $42 billion, a 21% decline from the previous year. The total number of homes purchased by foreign buyers declined 37%, down to 54,000 transactions.
Despite the broader slowdown, Canadian buyers increased their market share—rising ahead of Chinese, Indian, and Mexican buyers (each representing 11% of foreign purchases). But now, even that momentum is showing signs of reversal.
“I currently have 18 listings from Canadians looking to sell,” Arizona-based realtor Laurie Lavine told Reuters. “Normally, I’d expect two to four per quarter.”
Lavine attributes the rise in listings to a combination of factors: diplomatic friction, a weaker Canadian dollar, and tougher entry rules under the Trump administration.
Among the most notable changes is a new US policy that requires all foreign visitors aged 14 and up to register and submit fingerprints if they stay more than 30 days, rules that now apply to Canadians, who were previously allowed to stay up to six months without a visa.
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Canadians are also reacting to broader rhetoric and policy shifts. Many were rankled by Trump’s recent remarks suggesting Canada should become a US state, and by his repeated references to former Prime Minister Justin Trudeau as “governor.” The reimposition of steep trade tariffs has only added to the economic unease, especially in Canada’s export-dependent economy.
Consumer behavior is shifting as well. According to Statistics Canada, Canadian return flights from the US dropped 13.5% year-over-year in March, while auto return trips fell 32%.
These factors are now influencing real estate demand.
“We’re seeing Canadians cashing out,” said Lavine. “They’re not just selling because of market timing. There’s a cultural and political discomfort that’s driving it.”
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