Are Canadians Pulling Out of Florida Real Estate? The Surprising Shift You Need to Know

What if the dream of owning a sunny second home in Florida is starting to fade for our northern neighbors? More on that in a moment...

For years, Canadians have been the largest group of international buyers in the U.S. real estate market, particularly in sunny destinations like Florida and Arizona. But something has shifted—and fast.

From political tensions and tariffs to new travel rules, a series of changes are making American real estate less attractive for our snowbird friends. As a result, key markets like Naples, North Port, and Phoenix are already feeling the sting.

Let’s dive into why Canadian demand is cooling—and what it could mean for U.S. homeowners, investors, and agents.

Canadians Were Once King of U.S. Real Estate

Canadians weren’t just vacationers—they were serious buyers. In cities like Naples, FL, more than 70% of international search traffic used to come from Canada. They bought second homes, rental properties, and retirement escapes—injecting billions into local economies.

But now? According to Realtor.com’s International Demand Report, Canadian interest dropped from 40.7% to 34.7% between late 2024 and early 2025. That’s not a fluke. That’s a trend.

So, What’s Causing This Pullback?

1. Tariffs and Trade Tension

It started with Trump-era tariffs—a 25% tax on Canadian steel and aluminum, followed by more increases in 2025. Materials for construction, appliances, and renovations all got more expensive overnight.

Planning to build or remodel a Florida home from Canada? That budget just ballooned.

2. New Travel Restrictions

A new 2025 rule requires foreign nationals staying longer than 30 days to register with authorities. That includes snowbirds who traditionally spend winters in Florida. Suddenly, the dream escape becomes a paperwork nightmare.

3. Political Rhetoric

Trump’s comments about Canada becoming the “51st state” and other controversial remarks stirred outrage. Prime Minister Mark Carney pushed back, declaring that “Canada will never be for sale.”

The Numbers Don’t Lie: Where Canadian Interest Has Collapsed

• Naples, FL: Down from 73% to 59.6% (13.5 points)
• North Port, FL: Nearly 13-point drop
• Cape Coral, FL: Down 10.8 points
• Tampa, FL: Down 10.1 points
• Phoenix, AZ: Shrinking by 12 points
• Detroit, MI: Down 10 points

Meanwhile, Collier County tourism reports a 23% decline in Canadian visitors in February 2025 alone.

The Real-World Impact: A Cooling Market

• Luxury properties are sitting longer on the market
• Open houses are quieter
• Fewer bidding wars, more price negotiations
• Reduced rental demand in tourist-heavy areas
• Slower business for seasonal restaurants and retailers

Where Are Canadians Looking Instead?

Many are now choosing:

• Mexico
• Portugal
• Costa Rica
• Chile

Why risk bureaucracy and rising costs in the U.S. when other destinations feel more welcoming?

What This Means for the U.S. Housing Market

Expect:

• Slower sales in traditional snowbird cities
• More inventory in the luxury and second-home segments
• New opportunities for U.S.-based investors
• Agents needing new marketing strategies

This may not be a pause—it might be a full recalibration.

Will Canadian Buyers Come Back?

That depends. If tariffs lift and politics stabilize—maybe. But for now, the frost is real, and many Canadians are choosing to skip the U.S.

Final Thoughts from Joe Hillner

Florida and Arizona real estate pros need to stay alert. This isn’t just a political moment—it’s a market signal. A once-reliable buyer pool is shrinking, and new strategies will be key to staying ahead.

If you’re a seller or investor in a snowbird market, now’s the time to reassess your game plan.