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Canadian Buyers Are Pulling Back From U.S. Hotspots — What It Means for Florida Real Estate

For decades, Canadians have been among the most reliable foreign buyers in the U.S. housing market, flocking to Florida, Arizona, California, and Hawaii for vacation homes, retirement properties, and cross-border investments.

But that trend is shifting. Realtors in South Florida and Arizona are reporting a dramatic drop in Canadian buyers — a change that is rattling local markets and reshaping demand.

Why Canadians Are Leaving U.S. Markets

Several factors are driving Canadians to sell off U.S. properties — and avoid buying new ones:

  • Tariffs & strained U.S.-Canada relations – Trade tensions and politics have soured sentiment.
  • Weaker Canadian dollar – With the loonie trading around $0.70–0.72 USD, buying in America costs 30% more.
  • High insurance & HOA fees – Florida’s rising premiums and condo costs are pushing buyers away.
  • Cost of living & hurricanes – Recent storms and surging expenses have added to the burden.

One realtor summed it up:

“All my Canadian clients sold their homes this year — and they don’t want back in.”

The Numbers Tell the Story

  • Canadian searches for U.S. homes on Redfin dropped 22% year-over-year, peaking at a 34% plunge in April 2025.
  • Canadians still made up 14% of foreign buyers last year, spending $6.2 billion, second only to Chinese investors at $13.7 billion.
  • But in hotspots like South Florida, realtors say sales are down 50% or more this year.

Despite the pullback, Canadians remain one of the most important foreign buyer groups — especially in Florida, where nearly half of their U.S. purchases are concentrated.

From Sellers’ Market to Buyers’ Market in Florida

The shift comes as Florida’s housing market cools:

  • Home prices in Florida dropped 2.2% year-over-year in May 2025.
  • South Florida listings are sitting longer, with many homes selling 20–30% below asking.
  • Inventory has increased, giving buyers more options and negotiation power.

For U.S. buyers — and Canadians willing to wait out political tensions — this represents a prime opportunity to purchase at a discount.

Why This Matters Beyond Real Estate

When Canadians buy in Florida, they bring more than real estate dollars:

  • They spend on cars, dining, and tourism during extended stays.
  • Realtors estimate Canadians contribute up to a third of local tourism spending in some communities.

Their absence is felt not only in housing sales, but across the broader Florida economy.

Looking Ahead: Will Canadians Return?

Experts believe the pullback could persist into 2026 unless conditions change:

  • Tariffs and trade tensions need to cool down.
  • Interest rate cuts from the Federal Reserve could boost affordability.
  • A softer U.S. dollar would make Florida property more appealing again.

As one analyst put it:

“By early 2026, a combination of dropped rates and a buyer’s market could bring Canadians back in.”

How Lendworth USA Helps Canadian Buyers Stay in the Market

At Lendworth USA, we make U.S. real estate accessible to Canadians — even in uncertain times:

  • Foreign national mortgages – No U.S. credit history required
  • Equity-based lending for flexible approvals
  • Vacation & investment property financing in Florida’s top markets
  • Cross-border expertise to simplify the process from Toronto to Tampa

📞 Contact Lendworth USA today to explore mortgage options designed for Canadians. Whether you’re looking for a Florida vacation home, a rental property, or a retirement retreat, we help you buy with confidence — even in a changing market.

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