by Mike Colpitts 
Canadian homeowners flee Florida real estate in the most significant demonstration against tariffs implemented by President Donald Trump yet. The shift is driven by the economic and political ramifications of policies, which have introduced new challenges and uncertainty for foreign property owners.
Canadians spent close to $6 billion on U.S. real estate from April 2023 to March 2024, which makes up 13 per cent of all foreign transactions – more than any other nationality, according to data from the National Association of Realtors. Nearly half of the homes purchased by Canadians were for vacation purposes.
Canadians are now required to register with U.S. immigration authorities to stay in the U.S. for more than 90 days.
Trump imposed a 25% tariff on imports from Canada, including building materials like softwood lumber and gypsum, which are integral to U.S. construction. This move was part of a broader strategy to address trade imbalances and border security concerns. However, the tariffs have had unintended consequences for Canadian citizens who own property in the U.S.
Some of the tariffs have been suspended for 90 days but Canadians are having difficulties trusting the Trump administration. The National Association of Home Builders (NAHB) expressed concerns that these tariffs would escalate construction costs, potentially adding over $9,000 to the price of a new home. This increase is attributed to higher prices for materials like lumber and drywall, which are predominantly imported from Canada and Mexico . For Canadian property owners, rising costs translate into higher maintenance and renovation expenses.
The Fort Myers area has one of the largest contingents of Canadian homeowners in the U.S. Most are seasonal property owners who visit the region and contribute mightily to the area’s economy. Trump’s repeated suggestions that Canada should become a U.S. state, and his derogatory references about former Prime Minister Justin Trudeau as “governor” have annoyed Canadians and offended their national pride.
The sour feelings that many Canadians suddenly feel toward the U.S. are having a big impact on the property market as Canadian homeowners flee Florida.
“South Florida’s residential market has for decades been reliant on the annual influx of Canadian snowbirds who either own property and pay property tax or rent for the winter months – either way, a boost to the economy,” said Ermengarde Jabir, a director of economic research at Moody’s Analytics.
Emotional and Political Factors Influence Decision to Sell
Emotional and political factors are playing a role in the decision to divest U.S. properties. Reports indicate that many Canadians feel unwelcome due to the rhetoric and policies emanating from the Trump administration. Instances of anti-Canadian sentiment and the imposition of stricter border regulations have contributed to a sense of alienation among Canadians.
A Reuters article highlights that some real estate agents have observed a significant uptick in property listings from Canadian owners, with some agents reporting up to 18 listings compared to the usual two to four per quarter. The surge suggests a broader trend of Canadian property owners reevaluating their investments in the U.S. market.
Canadian Homeowners Flee
The exodus of Canadian property owners is beginning to affect U.S. real estate markets, particularly in Florida, which has historically seen significant Canadian investment. The Tampa Bay Business Journal reports that Florida stands to lose more than other states due to rising tensions between Canada and the U.S. With approximately 600 Canadian companies operating in Florida and cross-border trade supporting over 530,000 jobs in the state, disruptions to these economic ties could have substantial consequences.
The influx of Canadian sellers is contributing to a softening housing market in Florida and other warm weather states. While some areas continue to experience demand from domestic buyers, certain overheated markets, where property values have surged by over 30% in recent years, are witnessing modest price declines as local buyers reach their affordability limits.
In response to the challenges posed by the U.S. tariffs, many Canadian snowbirds are exploring alternative destinations for their winter retreats. Countries like Mexico, Portugal, and France are emerging as attractive options due to their favorable climates, lower costs of living, and politically more welcoming policies towards foreign residents. The shift not only affects the U.S. real estate market but also has broader implications for international tourism and investment patterns.