Our Neighbours to the North: Why Canadians are Leading the Way in U.S. Real Estate Investment

You know, it’s pretty clear when you look at the data on international real estate investment in the U.S. – our neighbors to the north, the Canadians, are major players! As an international buyer representative – and an active foreign investor myself – I can tell you firsthand that the ties between Canada and the U.S. run deep. It’s a relationship, driven by proximity, climate, and the search for better investments. Let’s dive into the data, and see why Canadians are consistently some of the top foreign buyers of U.S. real estate and what U.S. real estate so appealing to them.

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Leading the Charge: Canada’s Prominent Role in the U.S. Market

The National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report clearly highlights Canada’s significant role in the U.S. real estate market. Canadians are the second-largest group of foreign buyers in U.S. residential real estate, accounting for 14% of all foreign purchases (a slight increase from 13% in 2024). Canadian investment reached $6.2 billion USD in the past year, up around 5% from $5.9 billion year-on-year. But what’s even more impressive is the volume: they purchased 10,900 properties, which is a remarkable 53.5% increase in units from 7,100 in 2024.

The Data in Summary – 2024 vs 2025

Why the U.S. Continues to Attract Canadian Investors

So, what keeps our Canadian friends looking south for real estate opportunities?

• Proximity & Convenience: It’s just a short drive or flight for many Canadians to reach U.S. destinations. This makes managing vacation homes or even primary residences much more practical.

• Climate Appeal: Let’s be honest, those Canadian winters can be long! Warmer states like Florida, Arizona, and California offer the perfect escape for ‘snowbirds’ looking for seasonal residences or permanent retirement homes.

• Market Stability & Value: The U.S. real estate market is perceived as stable and offers a diverse range of price points and investment potential. The median purchase price by Canadians fell to $437,500 from $548,600 in 2024, indicating a growing preference for more affordable properties, which can be a key driver for investment.

• Cultural Familiarity: While there are differences, the overarching cultural similarities make the transition to owning property in the U.S. relatively smooth for Canadians.

These factors combine to create a compelling case for Canadian buyers, whether they’re looking for leisure, investment, or a new place to call home. Based on the conversations I’m having personally with Canadian buyers, I can tell you their main motivating factor is not the U.S. market, but their own domestic property market in Canada. From what I’m hearing, prices have risen so much that the numbers just don’t pencil out anymore for rental property investors in Canada. That, and the fact that the U.S. is close, familiar, and not wrought with the same level of increasingly restrictive regulations, are the biggest drivers for most of my own clients.

Related: Why UK Investors Bought $2 Billion of U.S. Real Estate

What Canadians Are Buying: Price, Cash, and Purpose

The updated data gives us a clearer picture of Canadian purchasing habits. With a median purchase price of $437,500, (compared to $548,600 in 2025) it suggests that many Canadian investors are strategically looking for more affordable properties, perhaps for a solid return on investment or as accessible vacation spots.

When it comes to financing, a significant majority—57% of Canadian buyers—made an all-cash purchase. This indicates a strong preference for unmortgaged transactions, though it also means nearly half are utilizing mortgages, highlighting diverse financial strategies. As for why they’re buying, nearly half (49%) purchased for vacation use, reinforcing the ‘snowbird’ trend, with the remainder purchased for various investment purposes.

In terms of locations, while most Canadians buying vacation homes focus on Florida, my clients looking to build rental property portfolios in the U.S. tend to favour more affordable markets in the Midwest where rent-to-price ratios support the investment case for leveraged real estate investments. This seems to be reflected in the broader numbers from the NAR report where we see the median purchase price for Canadian buyers has declined by about 20% year-on-year.

Related: Foreign National Mortgages: Your Essential 2025 Guide for Non-Residents

My Insights on Working with Canadian Investors

Working with Canadian clients is a fantastic experience. They tend to have a good understanding of the U.S. market. However, there are crucial cross-border specifics that require expert navigation. This includes understanding the nuances of U.S. property law, potential tax implications (like FIRPTA for non-resident sellers), and financing options specifically available to foreign nationals.

It’s my role, as an buyer representative specializing in international transactions, to ensure that every Canadian investor has a smooth, compliant, and successful purchase, leveraging our extensive network and expertise to make it happen. I ensure they understand all the steps, from finding the right property to closing the deal and handling ongoing ownership.

Related: The Foreign Buyers Snapping Up U.S. Real Estate in 2025

Frequently Asked Questions (FAQs)

How significant is Canadian investment in the U.S. residential real estate market?

Canadians are the second-largest group of foreign buyers in U.S. residential real estate, accounting for 14% of all foreign purchases. In the past year, they invested $6.2 billion USD, acquiring 10,900 properties, which is a substantial increase of 53.5% in properties purchased compared to the previous year.

What are the primary reasons Canadians choose to invest in U.S. real estate?

Canadians are primarily drawn to U.S. real estate for vacation use (49% of purchases) and investment purposes. Reasons include close proximity, warmer climates, the stability of the U.S. market, and the availability of more affordable properties, as indicated by a recent fall in their median purchase price.

What types of properties and U.S. locations are most popular among Canadian investors?

While specific property types aren’t detailed, Canadian investors show a growing preference for more affordable properties, with a median purchase price of $437,500. Popular U.S. destinations for Canadians include warmer states like Florida and Arizona, ideal for vacation homes or winter residences.

What are the common financing methods for Canadian investors in the U.S.?

A majority of Canadian buyers, 57%, made all-cash purchases, indicating a strong preference for unmortgaged transactions. However, nearly half also utilized mortgages, making it a significant financing method for Canadian investors in the U.S. market.