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Calgary Herald

As Canadians ditch U.S. real estate, some predict a flood north

Article content As more Canadians abandon the U.S. real estate market in response to tensions between the two countries, millions of dollars could be returning to the Canadian market. Article content Canadians represent the largest share of foreign buyers in the U.S., accounting for 7,100 homes purchased in the country in 2024, primarily in vacation spots, according to the National Association of Realtors' 2024 report. Article content Article content A recent report from the RAM Development Group shows that 81 per cent of Canadians are focused on keeping their money in Canada. Thirty-four per cent of respondents suggest the change in spending habits is indefinite. Article content As Canadians who own property in the U.S. now reconsider their purchase, it could mean a serious boom for Canada's sluggish real estate market. Article content A recent report from the real estate platform Zoocasa Inc. estimates that if 100 Canadian buyers left a single U.S. state, it would result in $80 million in lost transaction volume. Article content Canadian purchases of U.S. property declined an average of 14.5 per cent annually between 2019 and 2024, according to Zoocasa, with 7,100 marking the lowest number of transactions in 15 years — even lower than the height of the COVID-19 pandemic. Article content If this trend continues, Florida alone would see a drop in transaction volume of more than US$653 million in just two years, while Arizona would experience a drop of $366 million. Article content 'Other popular vacation destinations for Canadians, including Arizona, Hawaii, California, and New York, will also lose hundreds of millions of dollars if Canadian buyers continue to retreat from the market,' the report states. Article content Article content 'While returning buyers could add to competition in already tight markets, many are likely to be retirees or snowbirds who would focus their purchases in vacation areas,' the report states. 'This could revive Ontario's cottage country, which has seen a slow start to the year.'