Canadian interest in US homebuying cools as trade tensions rise

U.S. home shopping activity by international buyers declined modestly in the third quarter of 2025, led by reduced interest from Canadian buyers, according to Realtor.com’s latest International Demand Report.

Foreign users accounted for 1.5% of online searches for U.S. homes during the quarter — down from 1.6% a year earlier, although still above the 1.2% share for the same period in 2019, prior to the COVID-19 pandemic.

“Global economic uncertainty, policy shifts, and the resulting exchange rate fluctuations are creating mixed conditions for international buyers,” said Danielle Hale, chief economist at Realtor.com.

“These factors have led to some moderation in foreign demand for U.S. homes compared to last year. Still, interest remains above pre-pandemic levels, reflecting ongoing engagement from global home shoppers in key U.S. markets.”

Canadian share declines as trade tensions rise

Canada remained the largest source of international home searches but saw its share fall to 32.1%, down from 36.6% in the third quarter of 2024, the report explained.

The decline followed the U.S. imposition of tariffs on Canadian goods, which may have dampened housing interest amid currency volatility and economic uncertainty.

Canadian shoppers continued to dominate traffic in several metro areas, including Cape Coral, Florida (61.4%); Phoenix (61%); and North Port, Florida (58.8%).

Other leading sources of international demand included the United Kingdom (6.5%), Mexico (5.6%), Germany (4.1%) and Australia (3.4%).

Luxury demand softens as prices dip

International buyers continued to view higher-priced properties more frequently than domestic shoppers, although the price gap narrowed.

The median home viewed by an international user was 29.8% more expensive than those viewed by U.S. shoppers — down from an average gap of 34.2% between 2022 and 2024.

The change reflects a steeper decline in the median viewed price for international buyers (-5.2%) compared with domestic shoppers (–1.7%), suggesting weaker demand for luxury homes amid global economic pressures and currency fluctuations, Realtor.com explained.

Large price differentials persisted in cities such as Los Angeles (173.6%), New York (49.2%), San Francisco (33.4%) and Boston (23.8%).

Austin (18.6%) continued to attract international professionals and investors with its relative affordability and strong job market.

Miami tops the list for international traffic

Miami remained the top U.S. destination for foreign shoppers, accounting for 8.4% of all international views.

It was followed by New York (5.6%), Los Angeles (4.8%), Orlando (2.7%) and Dallas (2.7%).

Realtor.com economists said future immigration and visa policies are likely to influence international housing trends.

“Proposed ‘gold’ and ‘platinum visa’ programs may draw more high-net-worth buyers to luxury markets, while restrictions on H-1B visas could weigh on demand in innovation-driven metros such as Austin and San Jose,” said Jiayi Xu, a Realtor.com senior economist.