by Mike Colpitts 
- Canadians own 13% of U.S. real estate and they are selling their vacation homes and second properties at unprecedented levels as a result of Trump trade tariffs.
- The selloff is hurting the Florida real estate market and fears are growing that the downturn could last years.
- The Naples and Cape Coral share of online searches by international shoppers for homes and condos has dropped significantly.
Canadian homeowners, who own 13% of U.S. real estate, are selling off their Florida homes as a result of Trump trade tariffs and fears are running deep that the sell-off will increase over the next three years.
Canadian snowbirds are leaving Florida in near record numbers and they’re taking their money with them. Argentina, Mexico and Venezuela are benefitting as Canadians seek warmer weather climates to purchase new vacation properties in rising numbers.
The United States, Canada’s largest trading partner, has implemented huge tariffs against Canadian goods, including a 35% tariff on some Canadian goods and 50% on steel and aluminum.
“We’ve had a huge uptick in Canadian clients of ours who are calling us to actually list their properties just as our season is starting,” Douglas Elliman’s Florida director of luxury sales Senada Adzem said. “They feel it’s the perfect time for them to sell.”
The decline in Canadian buyer interest in online searches for Florida homes and condos has been massive on Realtor.com, Zillow and Redfin. Bookings for rental homes in Southwest Florida for the winter season are also down, according to a survey of rental companies in the region.
Higher maintenance costs exacerbated by higher insurance costs and homeowner dues are contributing to the sell-off. Lower exchange rates between the U.S. and Canadian dollar have also impacted the sell-off. The Trump tariffs are having a major impact on the Florida real estate market, contributing to declining home prices.
A report by Realtor.com found that Canadian online searches for U.S. properties declined. The Naples share of Canadian traffic dropped from 73% to 59.6% for international traffic, and in Cape Coral it dropped 10.8 percentage-points.
The Florida Realtors Association reported international buyer dollar volume in 2024 at $7.1 billion, down 54% from the 2022 high of $15.3 billion.
The drop-off is particularly important since reduced foreign buyer demand weakens competition for second homes, which lowers pressure on prices. The second home and vacation market in the Fort Myers region is the second largest part of the residential real estate market behind single family homes. The impact effects local real estate markets that have heavy inventories of second homes and vacation homes like Naples and Fort Myers.
The decline in Canadian home buyers can have a major financial impact on the local markets. Median single-family home prices in Fort Myers have slipped 5–9 % in the past 12 months in the $335,00-$350,000 range, while in Naples values are down about 20%.
Rising new home construction costs are also contributing to the decline. Higher priced building materials, construction workers pay and other costs are making new home prices rise in some sectors of the market.
The tariffs are acting “as a brake on the pace of development,” making new housing more expensive and reducing the supply of growth.