The number of people north of the border searching for homes in the US dropped by over 25% compared to the beginning of 2025, when the US instituted steep tariffs on Canada and relations between the two countries started suffering, per a report from Redfin. The drop included those seeking primary homes, as well as second/vacation homes in once-popular destinations like Miami and Phoenix. Comparatively, the total number of prospective buyers and renters searching on Redfin.com declined too, but only by a fraction of the amount.
The report, which looked at user behaviors on Redfin.com, showed that the decline started significantly in February, when the White House implemented 25% tariffs on imports from Canada and Mexico, and greatly worsened in April, the month the Trump administration announced its vast global tariff policy. The total drop was 34.2% year over year.
The decline coincides with some Canadians growing disillusioned with the United States. President Trump took office in January, and shortly thereafter instituted high tariffs on goods from Canada, as well as suggesting that he’d make Canada the “51st state.” Add to that the Canadian dollar, which has been relatively weak this spring, making it harder for Canadians to afford already-expensive US real estate.
Canadians have made up the largest portion of international homebuyers in the US, historically speaking. In 2024, Canadians made up 13% of foreign buyers and were responsible for buying $5.9 billion worth of US real estate.
Most Major U.S. Metros Are Feeling the Canadian Drop
Fewer Canadians are searching for homes in 48 of the 50 largest US metros. The biggest declines are in big cities: Houston felt a 55.2% year-over-year drop in May, with Philadelphia and Chicago following (53% and 47%, respectively).
Even the warmer areas that tend to attract Canadian buyers and snowbirds are feeling the pinch. Both Miami and Orlando declined by about 30% year over year in May, with Phoenix and Riverside (Palm Springs), CA dropping 23%.
“I haven’t worked with a Canadian buyer in at least a year,” said Marsha McMahon-Jones, a Redfin Premier agent in Palm Springs. “I’m in touch with a few potential buyers, but they’re staying put in Canada for now with the idea of potentially making a move if and when Canada-U.S. relations improve. I haven’t heard of any Canadians who already live here part of the year listing their Palm Springs home, though.”
Those second-home destinations followed a similar pattern as Canada-to-U.S. Redfin.com users overall, with sharp dips in April and slightly smaller but still significant dips in May.
That said, remember that the housing market in Florida, a popular destination for Canadian buyers, has cooled for American and foreign buyers alike. As insurance costs soar and climate disasters intensify, fewer people are interested in buying homes in Florida, and especially the coasts. The housing markets in Phoenix and Riverside have also cooled to a lesser extent.
Click here to view Redfin’s full report, including a metro-level summary.
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