Political Tensions Prompt U.S. Property Sell-Off by Canadians; Many Plan to Reinvest in Domestic Real Estate

Amid rising political turmoil in the United States and ongoing economic tensions between our two countries, many Canadians who own residential property south of the border are considering selling or have already sold.

According to a recent Royal LePage survey, conducted by Burson, more than half (54%) of Canadians who currently own residential property in the U.S. say they are planning to sell within the next year, among whom a majority (62%) credit the current political administration as the main reason. Meanwhile, 33 per cent of them say they are motivated by other factors, such as personal and financial reasons, and another five per cent say it is due to increasingly extreme weather conditions, like hurricanes, flooding and forest fires.

“The polarizing political climate in the United States is prompting many Canadians to reconsider how and where they spend their time and money,” said Phil Soper, president and CEO, Royal LePage. “Canadians have been the most important foreign investors in America’s residential real estate market for years, and a significant wave of property sales would leave a noticeable mark on the regional economies that snowbirds support.

While wealthy buyers from China and other nations also spend a great deal on American residential real estate, purchasing expensive properties in major cities as investments, Canadians actually live in the neighbourhoods where they buy. They shop locally, dine out, volunteer and join pickleball leagues. Places like Florida, Arizona and California stand to lose millions in economic activity each year – and thousands of neighbours – if Canadian owners pull their capital from U.S. housing markets.”

Of those who sold their property south of the border within the last year, 44 per cent say it was due to the current political administration, while 27 per cent say it was for personal reasons, and 22 per cent because of increasingly extreme weather conditions.

“Not every decision to sell is politically driven. For many, the decision to divest will be due to changing personal circumstances, from reprioritizing financial goals to the simple decision to invest closer to home,” continued Soper. “For some, the upkeep and distance of a U.S. property has become more burden than benefit, and uncertainty around shifting, murky border rules is yet another layer of stress. For years, Canadians rarely gave the American border a second thought on their way to a winter break in the south. Now, many fear that easy neighbourly travel can no longer be taken for granted.”

Canadians Intend to Reinvest in Domestic Real Estate Market

The ‘Buy Canadian’ movement, sparked by ongoing tariff threats by President Donald Trump, has resonated across the economy, from consumers choosing Canadian-made goods to businesses prioritizing local partnerships. In that same spirit, many Canadians selling their U.S. properties plan to put their sale earnings back into the Canadian housing market, further reinforcing confidence in domestic real estate.

When asked if they plan to reinvest the proceeds of the sale of their U.S. home into the Canadian real estate market, almost one third (32%) of respondents who have recently sold or are planning to sell within the next year answered ‘yes’.

“Across sectors, Canadians are increasingly choosing to support domestic businesses, prioritize homegrown products, and invest in their own communities. This mindset extends into real estate,” said Soper. “Many who are selling their U.S. properties are opting to bring that capital back home, with some reinvesting in local recreational property, reinforcing confidence in the long-term strength and stability of Canada’s economy.”