Canada’s once-dominant presence in the U.S. housing market is steadily unraveling. Redfin data reveals that Canadian searches for American homes dropped 26.4% year-over-year in May 2025—the fourth straight month of steep decline—as escalating trade tensions with the U.S. under President Trump stir economic anxiety.
The downturn began in February when searches tumbled 21.3%, coinciding with Trump’s announcement of 25% tariffs on Canadian imports. Buyers reacted to unpredictability, pausing deals and reconsidering long-term investments. The fallout is especially felt in markets like Florida, California, and Arizona, where Canadians traditionally flock for seasonal homes and spend billions annually.
As buyer confidence wanes, agents are reporting stalled transactions, dramatic price cuts, and investor hesitations. Real estate professionals in Miami and Sarasota say once-eager Canadian clients are withdrawing due to concerns over business stability, currency fluctuation, and the potential for recession.
Economists warn that continued uncertainty could chill demand further. Half of Canadian purchases are usually vacation homes—meaning local U.S. economies may see a ripple effect in lost seasonal spending and property turnover.
The political backdrop continues to weigh heavy, with Canada’s new Prime Minister Mark Carney calling the tariffs “the greatest crisis of our lifetimes.” Unless relations stabilize, the cooling interest from Canadian buyers could reshape the foreign investment landscape across key U.S. housing markets.
