Canadian Interest in Buying US Homes Begins to Bounce Back

The number of Canadians considering buying a U.S. home has started to rebound this year after a sharp drop in 2025 triggered by anger over President Donald Trump’s tariffs, a new study suggests.

Canadians’ interest in buying homes in the United States has risen by 3 percent from last year, according to a report from Realtor.com.

The real estate website analyzed international views on American home listings from January to March 2026 to gauge interest. It found Canadians represented the largest source of international demand for homes in the United States during the first quarter of 2026, accounting for 37.8 percent of all international traffic, up from 34.8 percent in the same period of 2025.

“Canada remains the top source of international online home shopping traffic to the U.S.,” the site said. It said Canadian buyers are “cautiously reengaging with the U.S. market,” but interest still fell short of the pre-tariff peak of 41.8 percent in the first quarter of 2024.

As Canadians begin a gradual return to the U.S. housing market, online shopping demand from international homebuyers has dipped to 1.6 percent, compared to 1.8 percent last year. 

While Canadians make up nearly 38 percent of this year’s traffic, Mexico has the second-biggest share, at 6.4 percent, followed by the United Kingdom at 5.9 percent, Germany at 3.9 percent, and Australia at 3 percent.

Warm and sunny states remain the top choice for Canadians looking for a home down south.

Cape Coral, Fla., emerged as the leading destination for Canadian buyers, with 71 percent of its international demand originating from Canada. 

The rate was 70.9 percent in the city of Naples, Fla. In third position was Phoenix, Ariz., with a rate of 66.9 percent, followed by North Port, Fla., at 66.2 percent, Tampa, Fla., at 58.8 percent, and Riverside, Calif., at 56 percent.

On the flip side, Canadians’ interest in certain U.S. markets has continued to wane this year. Traffic in Chicago, Ill., was down by 2.2 percentage points from the first quarter of 2025, while in Atlanta, Ga., it decreased by 0.2 percentage points year-over-year and by 5.8 percentage points since the first quarter of 2024.

The small uptick in Canadian interest in American real estate comes as the trade war between the two countries remains unresolved. 

The United States continues to levy tariffs on certain Canadian imports, although many are exempt under the Canada-United States-Mexico Agreement (CUSMA), the trilateral free trade treaty between Canada, the United States, and Mexico.

While most bilateral trade continues under preferential, duty-free treatment, the United States maintains several broad and sector-specific tariffs on Canadian goods, including a 25 percent tariff on many Canadian automobiles and trucks, roughly 45 percent combined duties on softwood lumber, and a 50 percent tariff on certain semi-finished copper products.

Unlike past treaties, CUSMA includes a mandatory six-year joint review that is set to begin this summer. The outcome of the review could affect the housing market by shifting interest rates, altering buyer confidence, and changing construction costs.