Canadian buyers are flocking to U.S. real estate for better returns
Trade wars. Rates. Trump. Since the beginning of 2025, the media has been hyper-focused on the three T’s.
The relationship between the US and Canada has been portrayed as hostile and has created a divide between traditionally close friends on the world stage. Despite the headlines, Canadians are flocking to American real estate.
What drives this movement? Some of the reasons are obvious, but there’s a lot more beneath the surface than meets the eye.
Familiarity with US markets
According to the 2025 National Association of International Transaction Brokers According to the report, Canadians are the second largest buyers of U.S. real estate, accounting for 14% of all international purchases. This is the highest percentage of Canadians purchasing U.S. real estate since 2015.
Canada shares a huge border with the United States, speaks a common language and has many cultural similarities. A significant portion of Canada’s population lives close to the US border, so the proximity to states like Ohio and Michigan makes investing in the US feel like investing in their own backyard.
The US also offers popular Canadian vacation and snowbird destinations. It’s common for them to look at real estate in areas near where they vacation because they already know those markets. It is precisely for this reason that you often see Arizona and Florida as the top states for Canadians in the NAR reports.
Affordable real estate options and wealth preservation
It’s no secret that the US dollar has historically been stronger than the Canadian dollar. On average, one Canadian dollar has been worth $0.75 over the past five years.
Moving money to the US may seem counterintuitive, but compared to major cities in Canada like Toronto and Vancouver, US real estate prices allow Canadian dollars to go further. Someone who buys one home in Canada may be able to spread that same down payment across multiple properties in certain U.S. markets, such as Midwestern and Sun Belt cities, and expect a higher return.
Another important part is that the investment math tends to make more sense on cheaper properties. Places with a higher price-to-rent ratio, where rent is relatively high compared to the cost of purchasing a home, offer cash flow opportunities that would be difficult to obtain without paying entirely cash in expensive Canadian metros. Additionally, Canada has very high property taxes that erode ROI compared to some US states.
The final piece of this is for Canadians who own U.S. real estate to keep their wealth in a stronger currency, in an asset class that has has tripled in value over the past twenty years. These profits can then be transferred back to Canadian dollars at favorable rates.
Landlord-friendly states
Landlords depend on rental income to pay their mortgage payments. This becomes problematic if tenants fall into rent arrears, making landlords responsible for paying the mortgage themselves.
What does that have to do with investing in American real estate?
Canadian laws between landlords and tenants are often similar to US states such as New York or California, which heavily favor the tenant when it comes to potential disputes. In contrast, the US offers a wide range of states to choose from that are more favorable to real estate investors as landlords, such as Texas, Florida, Georgia and Indiana. These states tend to have faster eviction processes and thus ways to incentivize tenants to pay rent or leave.
From the investor’s perspective, operating in a landowner-friendly state can save them money and provide further protection in the event of disputes.
Larger range of mortgage products
The United States is unique in that it offers mortgage products specifically aimed at real estate investors. For example, DSCR (debt-service-coverage-ratio) loans allow investors to qualify for investment property purchases based on potential cash flow rather than the individual’s income.
There are also more favorable loan options. The US has fixed-rate mortgages, with 30 years being the most common length. It is advantageous for many foreigners purchasing U.S. real estate to be able to hold fixed-rate debt over a long time horizon.
Canadian investors aren’t going anywhere
When you peel back the layers, it becomes clear that American real estate offers investment opportunities and benefits unmatched in Canada. Look for Canadians to continue purchasing real estate in the US
Yuval Golan is the founder and CEO of Waltza fintech-proptech-wealthtech startup.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners. To contact the editor responsible for this piece: [email protected]
