The number of Canadian citizens who have secondary homes in the United States and plan to sell their holiday homes in sunny states and Arizona has grown sharply this spring, many of them being discouraged by the sudden cooling of their homeland and US, reports the Agency Reuters on Tuesday.
Real estate agents say that they see more and more Canadians who sell here, which leads to an additional decrease in the prices of property in the hot climate states, which have long attract pensioners and tourists from Canada, a country known for its long and cold winters.
Canadians spent nearly $ 6 billion in real estate in the US from April 2023 until March 2024 – representing 13% of all foreign transactions – more than any other nationality, according to the data of the National Association of Real estate agents. Almost half of the houses bought by Canadians were intended for holidays, Florida, Arizona and Hawaii being the main markets.
Last week, Tracy and Dale McMulllen sold their Holiday House in Bukeye, Arizona, a property that they held for five years. The two live in the Canadian city of Alberta and usually spent between four and five months a year in Arizona, but now say they do not plan to return.
“We decided to sell the property after the current president of the US has taken over the mandate,” Dale said, referring to Donald Trump's investment in January.
“It was time to leave. We felt that we cannot trust what they could do next, both as individuals and our country. We have not felt welcome or safe,” he explained.
Trump administration's actions indignant Canadians
Many Canadians feel outraged by the actions and statements of the Trump administration, which imposed high customs duties to its northern neighbor, endangering the Canadian economy, strongly dependent on exports. Trump's repeated suggestions that Canada should become an American state, as well as his mocking references to former Prime Minister Justin Todeau as a “governor”, irritated the Canadians and injured their national pride.
As a result, many Canadians boycott products made in the US, such as Bourbon or agricultural products, and cancel their travels to American destinations.
The return flights of Canadians in the USA decreased by 13.5% in March compared to the previous year, according to Canada Statistics. The return travel of Canadian residents by car decreased by about 32%.
The real estate market now experiences a similar recoil of demand.
Laurie Lavine, real estate agent from Arizona who helped the McMullian spouses to sell, told Reuters that she has 18 properties of Canadians who want to sell in her portfolio. In the past, the number was about 2-4 properties in a quarter.
Citizens of Canada, among those affected by tightening controls upon entry into the US
The commercial tensions and the current weakness of the Canadian dollar also contribute to this recoil, added lavi. At the same time, Canadians feel that they are “taken in the viewfinder”, since American border agents apply stricter rules regarding the country's entry.
Starting this month, the Trump Administration asks all foreigners ages 14 or more to register with the authorities and to be imprinted if they remain more than 30 days. The Canadians, who could previously stay up to six months without a visa, are now subject to the new regulations.
The negative feelings that many Canadians have begun to suddenly have a major impact on the Florida real estate market, one of the closest states with hot climate by Ontario and Quebec, the most populated provinces of Canada.
“The residential market in southern Florida has been, for decades, dependent on the annual influx of Canadians who either own properties and pay taxes or rent for the winter months – an impulse for economy, in both cases,” said Ermengarde Jabir, Economic Research Director at Moody's Analytics.
The first quarter of the year is usually the peak season for the purchases of apartments in residential assemblies in the region. The period coincides with the period when many Canadians are in the area, says Andrea Hartmann, a coordinating partner of Sandy Hartmann Group, a real estate agency in the Tampa Bay area.
“Since the beginning of the year I have not received even an offer from a Canadian buyer, and we would normally have received,” she said.
The exodus begins to feel in other sunny states in the US
The Florida housing market is already affected. Potential buyers are experiencing increases in insurance premiums, concerns about climate change and a series of devastating hurricanes in recent years.
“Now, with the political problem, with the cost of maintaining a property in Florida and with the insurance, many have decided to sell and leave,” says Ken O'Brian, owner Southwest Coast Realty, who helps Canadians buy properties in Florida for almost 20 years.
“There is no reason to come to the States,” said Donny B., a Canadian from Ontario, who wants to sell the two properties bought in Florida as an investment. Like many other Canadians interviewed by Reuters, he refused to give his last name, saying he was afraid.
He states that he has decided to sell because of the political uncertainty, the exchange rate and the fears related to how well Canadians are received by the locals in the current context.
“I arrived here on Wednesday and I was restless. I was wondering,” Will the world be nervous? “
Fatima Malik, a global real estate counselor at Engel & Völkers Beverly Hills, says other US states are starting to see an exodus of Canadians. Real estate agents from Los Angeles and Palm Springs, California, collaborate with Canadians who are preparing to sell their holiday homes.
“Some are waiting to see how things are evolving, but others are already facing places like Portugal, Mexico or certain regions of France,” she added.
