T
ensions between the US and Canada are affecting Canadian interest in buying American property, particularly in Arizona and Florida. Canadians have historically been a significant group of foreign buyers in the US housing market, but recent rhetoric from the White House about annexation and combative trade negotiations is causing some to reconsider.

    According to Realtor.com data, Canadian online home viewers dropped sharply in the first quarter of 2025, from 40.7% to 34.7%. This decline is particularly concerning for real estate agents in warmer metros like Arizona and Florida, where Canadians often buy second homes at higher price points.

    The slowdown in demand isn't just a concern for Canadian buyers; it's also bad news for the weakening US housing market. In April, sales of previously-owned homes were at their slowest pace since 2009, according to the National Association of Realtors.

    Real estate agents are reporting less interest from Canadians, citing uncertainty and a sense that they're not welcome in the US. Jeff Lichtenstein, owner of Echo Fine Properties in South Florida, said some buyers are put off by the country's recent news coverage, which he believes is "not good for tourism or buying real estate."

    The Canadian economy is also suffering due to tariffs imposed by the US. Analysts at Oxford Economics predict a recession through 2025 unless a deal is reached to reduce tariffs. This has led to job losses and higher prices, causing households to rein in spending and extend the weakness in the resale housing market.

    A long-standing sense of America as a welcoming haven has been damaged, real estate agents say. The White House's stance on immigrants from South- and Central America is likely to be felt in Miami, making it a one-two punch for Florida real estate.