New tariffs that prevent Canadians from investing in US property
Tensional trade negotiations from the White House over Canada’s annexation discourage Canadians from purchasing property in the United States.
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Military rhetoric from the White House has been annexed by the United States, and militant trade negotiations have Canada’s interest in owning American property, just as housing markets south of the shared border are beginning to cool down.
According to the National Association of Realtors, Canadians made up the largest share of foreign buyers of residential real estate in the United States in 2024, accounting for 13% of the foreign purchase market, followed by China and Mexico each at 11%. In five of the last decade, Canadians have led foreign purchases.
Miles Gimbalk came to the Phoenix area from Saskatchewan in the wake of the 2008 subprime crisis and “fallen in love” with Arizona, he said. The positive exchange rates and low-cost real estate helped him to stay, and he set up a border insurance company in the US, a real estate services company that supports cross-border buyers and tenants, crossing border insurance.
“I never thought I’d see anything like this,” Zimbaluk said in an interview. “People are absolutely off by the annexation talk,” he said rhetoric has cornered some people to sell their second home they own in Arizona, while others decide to be more reserved than buying.
In the first quarter of 2025, Canadians sold over 700 homes in Maricopa County, compared to 100 in the same period last year. However, Canadians own around 30,000 properties in the county.
Data from Realtor.com confirms that interest in Canada is waning. Canadians made up of the largest share of online home viewers in the first quarter at 34.7%, a sharp decline since 2024, representing 40.7% of house hunters.
Slowing down is not a big concern for now, but it is definitely worth noting, according to Realtor.com economist Jiayi Xu. These are the market segments she sees most often, as Canadians buy at warm metros with lower taxes like Arizona and Florida and are more interested in the higher priced properties as second home buyers.
The US housing market is slowing
Still, slowing demand does not help weaken the US housing market. In April, the latest sales of previously owned homes since 2009 were the slowest in April since 2009, according to the National Association of Realtors. The pace of sales sets for the month fell below the 4.06 million mark achieved in 2024. This was the worst year since 1995.
In South Florida, real estate agents are “absolutely” seeing demand from Canadians, said Jeff Liechtenstein, owner and broker of Echofine Properties, will be headquartered in the Greater Palm Beach area.
“Part of that is uncertainty, and some of it doesn’t feel welcome,” Liechtenstein told USA Tdoay. “As a country, we have a lot of news. We’re in a lot of news. That’s not good for sightseeing or buying real estate.”
Canada’s economy suffers due to tariffs
Certainly, many Canadians are motivated by non-political factors. Home prices have risen dramatically, especially in the sunny metro area that Snowbird preferred, and it is now the best time to buy a while back. You can also purchase unfair suggestions, coupled with particularly unfavorable exchange rates. “Rooney” has weakened in recent months compared to the US dollar, making it even more expensive for Canadians to buy American products.
“I think Canada’s economy has fallen into a recession caused by the trade war that continues into the end of 2025 unless it reaches a trade to immediately cut US tariffs,” analysts wrote in a June 13 report. “Due to tariff pass-through and worsening supply chain tensions, unemployment and rising prices place emphasis on disposable income and consumer trust. This could help households curb spending and widen recent weaknesses in the resale housing market.”
Additionally, the real estate agent says America’s longstanding sense of being a welcome shelter with friendly people has been damaged. Liechtenstein said the White House’s stance on South and Central American immigration is likely to be felt in the Miami area, making it one punch for Florida real estate.
“A lot of people say they don’t feel comfortable in the US,” Gimbalk said. No one is worried about his safety, but he has heard that someone with a Canadian license plate remains on the windshield. “There’s a lot of uncertainty. Everyone is trying to find their way.”
