Due to factors such as exchange rates and climate, Canadians are currently primarily purchasing homes in Florida for the purpose of enjoying its sunny and warm weather. This desirable climate continues to attract 45% of Canadians’ neighbors to the North to invest in Florida real estate.
Calgary.com analyzed data from the National Association of Realtors’ 2022 International Transactions in U.S. Residential Real Estate report to determine the preferred destinations of Canadian snowbirds in the United States. According to the report, foreign buyers acquired 98,600 homes in the U.S. from April 2021 to March 2022, accounting for 1.6% of all 6 million existing-home sales. These buyers can be classified into three categories.
- non-U.S. citizens who have permanent residences outside the U.S.
- non-U.S. citizens who immigrated less than two years before the time of the purchase
- nonimmigrant visa holders who live in the U.S. for more than six months of the year for professional, educational, or other reasons
The top three countries of origin for foreign homebuyers in the U.S. are Canada, Mexico, and China. Canadians constitute the largest group of foreign purchasers, accounting for 11% of all such buyers and spending around $5.5 billion on U.S. properties.
Since there are no citizenship requirements for purchasing a home in the U.S., individuals from any nation are eligible to do so. Moreover, citizens of North American Free Trade Agreement (NAFTA) member countries, including its successor the U.S.-Mexico-Canada Agreement (USMCA), have access to special U.S. immigration status options, which make it even easier to own a home across borders.
However, the reverse is not true, as Canada has banned foreign buyers from purchasing homes starting in 2023 in an effort to address the country’s housing price crisis.
According to a survey by the National Association of Realtors, the most common reason why Canadians buy homes in the U.S. is for use as vacation properties.
One reason for this trend could be the declining affordability of U.S. homes for Canadian buyers. While housing prices in Canada became unaffordable in 2022 due to higher mortgage interest rates, the median housing cost in the U.S. has also surged. The COVID-19 pandemic led to limited home building and a sharp rise in housing demand. Additionally, the Federal Reserve’s efforts to combat record inflation by raising interest rates have further reduced the affordability of American homes.
Despite these challenges, data suggests that Canadians seeking homes in the U.S. are still targeting many of the same popular destinations favored by American buyers over the past decade.
Since the start of the COVID-19 pandemic, Canadians have become the largest group of foreign homebuyers in the U.S., surpassing Chinese buyers.
In 2022, Florida, Arizona, and California emerged as the most popular states for Canadian homebuyers. These locations are also popular retirement destinations for Americans and feature fewer cold weather days compared to northern states.
For instance, the Phoenix metropolitan area has been a popular destination for both American and Canadian “snowbirds” who reside in northern regions during summer but prefer to spend winters in warmer climates. It’s a widespread trend, and businesses in the area cater to and rely on the influx of customers during the winter months, often welcoming “snowbirds” with signs and advertisements.
Canadian snowbirds spend approximately $1 billion each season in Arizona, while Florida’s economy benefits from around 350,000 Canadian snowbirds who call the state their home for a portion of the year.
- Florida: Share of all Canadian purchases: 45%
- Arizona: Share of all Canadian purchases: 23%
- California: Share of all Canadian purchases: 12%
- Washington: Share of all Canadian purchases: 4%
- Michigan: Share of all Canadian purchases: 3%
- South Carolina: Share of all Canadian purchases: 3%
- Nevada: Share of all Canadian purchases: 2%
- Utah: Share of all Canadian purchases: 2%
- Illinois: Share of all Canadian purchases: 2%
- New York: Share of all Canadian purchases: 2%
