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26% Fewer Canadians Are Searching For Homes in the U.S. Than Last Year

1. Canadian searches for U.S. homes dropped 26.4% year-over-year in May. 2. Political tensions and tariffs reduced Canadian interest in U.S. real estate. 3. Major cities saw over 55% decline in Canadian home buyers. 4. Housing markets in traditional Canadian destinations are cooling significantly. 5. Many Canadians are delaying U.S. property purchases due to economic concerns.

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Why Bearish?

The sharp decline in Canadian buyers represents a significant loss of market demand for RDFN, historically reliant on Canadian investment in U.S. homes. Similar declines previously observed during economic downturns have led to prolonged depressions in real estate stock values, suggesting RDFN may face similar challenges.

How important is it?

The data reflects a significant shift in a key market segment for RDFN, impacting overall performance and investor sentiment. The decline of Canadian buyers, who traditionally comprised a substantial portion of foreign investments, increases the risk of price declines for RDFN.

Why Short Term?

The ongoing political tensions and market conditions are likely to affect immediate search behaviors and purchases. Historically, short-term impacts on buyer psychology from international relations can quickly translate into measurable decreases in real estate activity.

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-The number of Redfin.com users based in Canada searching for U.S. homes to rent or buy fell 26.4% from a year earlier in May. That’s a sign that fewer Canadians are moving south of the border or seeking vacation homes in once-popular destinations like Miami and Phoenix. SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — Fewer Canadians are searching for homes in the United States than they were at the start of 2025, before the U.S. instituted steep tariffs on Canada and relations between the two countries started suffering. This is according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The number of Canadian Redfin.com users searching for homes in the U.S. on Redfin.com dropped 26.4% year over year in May. For comparison, the total number of prospective buyers and renters searching on Redfin.com declined, too, but by a fraction of the amount. Canadians searching for homes in U.S. destinations started declining significantly in February, when the White House implemented 25% tariffs on imports from Canada and Mexico. The drop was especially steep in April, the month the Trump administration announced its vast global tariff policy, falling 34.2% year over year. This is according to an analysis of the number of Redfin.com users based in Canada searching for homes for sale and for rent in the United States. The data is based on unique users, i.e. the number of different people who access U.S. home listings on Redfin.com or the Redfin app within a defined period; that user is counted only once for the period. The decline in Canada-based searches for U.S. homes coincides with some Canadians growing disillusioned with the United States. Shortly after President Trump took office in January, he instituted high tariffs on goods from Canada, and made comments about making Canada the “51st state.” In addition to trade concerns, the Canadian dollar has been relatively weak this spring, making it harder for Canadians to afford already-expensive U.S. real estate. “Normally I work with about five Canadian buyers each spring, mostly older folks looking for a second home. This year, there were none,” said Heather Mahmood-Corley, a Redfin Premier agent in Phoenix. “I actually helped a Canadian sell their Phoenix home earlier this year. People from Canada are retreating from owning real estate in the U.S. because of political tensions; some of them are worried it will no longer be practical to travel back and forth between the two countries, and some don’t want their money tied up in the U.S. But also, we’re not seeing as many snowbird buyers in general; I’ve noticed older people are more concerned about their stock portfolios and 401Ks as the economy fluctuates.” Historically, Canadians have made up the largest portion of international homebuyers in the U.S. In 2024, for instance, Canadians made up 13% of foreign buyers, snapping up $5.9 billion worth of U.S. real estate, according to reports. Fewer Canadians Are Searching For Homes in Nearly Every Major U.S. Metro Area On a metro level, fewer Canadians are searching for homes in all but two of the 50 largest U.S. metros. The biggest declines in Canadians looking for U.S. homes are in big cities: Canadians searching in Houston dropped 55.2% year over year in May, and dropped 53% in Philadelphia and 47% in Chicago. Significantly fewer Canadians are searching in warm places that typically attract a lot of Canada-based second-home buyers. The number of Canadians searching for homes in both Miami and Orlando declined by about 30% year over year in May. Canada-to-Phoenix and Canada-to-Riverside (Palm Springs), CA both declined by about 23%. “I haven’t worked with a Canadian buyer in at least a year,” said Marsha McMahon-Jones, a Redfin Premier agent in Palm Springs. “I’m in touch with a few potential buyers, but they’re staying put in Canada for now with the idea of potentially making a move if and when Canada-U.S. relations improve. I haven’t heard of any Canadians who already live here part of the year listing their Palm Springs home, though.” Those second-home destinations followed a similar pattern as Canada-to-U.S. Redfin.com users overall, with sharp dips in April and slightly smaller but still significant dips in May. It’s worth noting that the housing market in Florida, a popular destination for Canadian buyers, has cooled for American and foreign buyers alike. Fewer people are interested in buying homes in Florida—particularly coastal parts of the state—as insurance costs soar and climate disasters intensify. Housing markets in Phoenix and Riverside have also cooled, though to a lesser extent. To view the full report, including chart and a metro-level summary, please visit: https://www.redfin.com/news/canada-to-united-states-house-hunters About Redfin Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people. Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and Walk Score®. For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here. More News From Redfin

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