Political tensions prompt U.S. property sell-off by Canadians: Royal LePage

Nearly 50% of Canadians who currently own property in the United States are considering selling within the next year, according to new research from Royal LePage. Anne-Elise Cugliari Allegritti, VP, Research & Communications/Investor Relations, Royal LePage, said the leading reason behind this growing sentiment is the current U.S. political climate, with close to two-thirds of potential sellers pointing to the U.S. administration as a key factor in their decision.

Allegritti noted that while political concerns are significant, they are far from the only issue influencing Canadians’ decisions. Ongoing economic challenges—such as a weaker Canadian dollar compared to past decades—and increasing risks related to climate change in southern U.S. states are also prompting many to reassess the viability of maintaining property south of the border.

Anne-Elise Cugliari Allegritti

She explained that owning property in another country involves considerable financial and logistical responsibilities, which are harder to justify when consumer confidence is low. “It’s a testament to the current sentiment,” Allegritti said, describing how uncertainty—both at home and abroad—is shaping Canadian behaviour around foreign property ownership.

Traditionally, Canadians—especially retirees and remote workers—have bought U.S. real estate for vacation purposes, often as winter escapes. However, Allegritti acknowledged that evolving work arrangements, particularly during the pandemic, had a significant impact on where and how people chose to live. The rise of remote work made owning recreational properties more attractive, both in the U.S. and in Canada.

According to U.S. National Association of Realtors data, Canadian purchases of U.S. property have declined sharply, from 30,000–50,000 annually between 2010 and 2015 to about 10,000 per year recently.

Allegritti added that roughly one-third of respondents who are selling—or recently sold—U.S. property said they would consider reinvesting in Canada, signaling a potential rebound in interest for domestic recreational real estate.

PRESS RELEASE

TORONTO, Aug. 27, 2025 /CNW/ – 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,¹ 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, forty-four 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.”

Investment in U.S. real estate by Canadians on the decline

According to the National Association of REALTORS^® (NAR), Canadians have been among the top two largest contributors of foreign investment in U.S. real estate for the last two decades, although transactions have been significantly lower the last five years compared to the majority of the 2010s.² Overall, real estate professionals in the U.S. have reported more than twice as many residential property sales by international clients over the last year, the largest group of whom are Canadians.

“With so many Canadians citing concerns about the U.S. administration as a key reason for divesting, it’s evident that political instability is no longer just a talking point – it’s a catalyst for change,” said Soper. “This shift in sentiment is reshaping how Canadians think about cross-border investment. As uncertainty continues to cloud the U.S. political landscape, we anticipate more Canadians will redirect their capital into domestic real estate, reinforcing long-term confidence in Canada’s housing market and creating new opportunities for growth closer to home.”

Overall, fewer Canadians are crossing the southern border. Statistics Canada reports that in the first quarter of 2025, Canadian residents made 6.1 million trips to the U.S., a 10.8 per cent decline compared to the same period last year.³ At the same time, spending during those visits fell 7.9 per cent year over year, totaling $5.7 billion.

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.”

U.S. web traffic to royallepage.ca surges during key political moments

It’s not just Canadians reconsidering their ties to the U.S. – many Americans are looking north as political tensions escalate at home.

Sessions originating from the U.S. to royallepage.ca – Canada’s most-visited real estate company website – have spiked significantly during key political events over the past year. In Week 24 of 2025 (week of June 8th), U.S.-based web traffic jumped 116 per cent year over year and 84 per cent week over week, coinciding with widespread protests in Los Angeles, following U.S. Immigration and Customs Enforcement (ICE) raids.

This is not the first time this behaviour has emerged. Following the 2024 U.S. presidential election, web traffic from American users increased significantly. On November 6th, the day after Trump was elected president for a second term, sessions originating from the U.S. jumped by 52 per cent.⁴ Overall, traffic during election week (Week 45, week of November 3rd) rose 70 per cent year over year, highlighting increased cross-border interest in Canadian real estate.

Another prominent surge occurred in Week 26 of 2024 (week of June 23rd), immediately following the first presidential debate between former president Joe Biden and now-president Donald Trump.⁵ During that week, U.S. traffic to the site rose 112 per cent over Week 24 and 94 per cent year over year.

“We’re seeing a clear and growing trend: moments of political unrest in the United States are directly correlating with surges in interest from American visitors to our website. Whether it’s protests, presidential debates or elections, these spikes suggest that a growing number of Americans are exploring Canadian real estate as a safe and stable alternative – even if the reality of being granted residency is more complex than a simple home search,” said Soper. “It’s a powerful signal that Canada’s reputation as a secure and welcoming place to live and invest continues to resonate beyond our borders.”

Royal LePage Survey: Canadians Selling U.S. Properties – Data Chart: rlp.ca/table-2025-Canadians-selling-US-properties

About the Survey

Burson used the Leger Opinion online panel to survey 2,500 adult residents across Canada. The survey was completed between August 4 and August 9, 2025. Age, gender, and regional weighting was applied to ensure representation at a national level according to 2021 census figures. No margin of error can be associated with a non-probability sample (i.e., a web panel in this case); however, for comparative purposes, a probability sample of 2,500 respondents would have a margin of error of ±2%, 19 times out of 20, and findings from smaller subsamples should be interpreted with the understanding that their associated margin of error increases.

About Royal LePage

Serving Canadians since 1913, Royal LePage is the country’s leading provider of services to real estate brokerages, with a network of approximately 20,000 real estate professionals in over 670 locations nationwide. Royal LePage is the only Canadian real estate company to have its own charitable foundation, the Royal LePage^® Shelter Foundation™, which has been dedicated to supporting women’s shelters and domestic violence prevention programs for more than 25 years. Royal LePage is a Bridgemarq Real Estate Services^® company, a TSX-listed corporation trading under the symbolTSX:BRE. For more information, please visit www.royallepage.ca.

Mario Toneguzzi

Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.

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