Amidst trade wars, tariffs, and the Trump administration, the media has been fixated on the three Ts since the beginning of 2025.
Despite the perceived adversarial relationship between the U.S. and Canada in the headlines, Canadians are showing a strong interest in U.S. real estate.
What is fueling this trend? While some reasons are apparent, there are deeper motivations at play.
Familiarity with U.S. markets
According to the 2025 National Association of Realtors International Transactions report, Canadians are the second-largest buyers of U.S. property, representing 14% of all international purchases. This marks the highest percentage of Canadian buyers in the U.S. real estate market since 2015.
With a shared border, common language, and cultural similarities, Canada’s proximity to the U.S. makes investing in American real estate feel like investing in their own backyard. Many Canadians live near the U.S. border, particularly in states like Ohio and Michigan, making it convenient to explore real estate opportunities.
Popular vacation spots and snowbird destinations in the U.S. also attract Canadian buyers, with states like Arizona and Florida being top choices. Familiarity with these areas and existing market knowledge drive Canadian interest in U.S. real estate.
Affordable property options and wealth preservation
Historically, the U.S. dollar has been stronger than the Canadian dollar, with one Canadian dollar averaging $0.75 over the past five years.
While it may seem counterintuitive, investing in the U.S. allows Canadian dollars to stretch further compared to the real estate prices in major Canadian cities like Toronto and Vancouver. Canadian investors can diversify their downpayment across multiple properties in certain U.S. markets, potentially yielding higher returns.
Additionally, lower-priced properties in the U.S. offer cash flow opportunities that may be challenging to find in expensive Canadian metros with high property taxes. The potential for ROI in the U.S. real estate market is appealing to Canadian investors looking to maximize their wealth.
Landlord-friendly states
For landlords, tenant payment issues can impact their ability to cover mortgage payments. This is where investing in U.S. real estate comes into play.
Canadian landlord-tenant laws often favor tenants, similar to states like New York or California. In contrast, U.S. states like Texas, Florida, Georgia, and Indiana provide a more landlord-friendly environment with faster eviction processes and incentives for tenants to fulfill their rental obligations.
Operating in a landlord-friendly state in the U.S. can save investors money and offer added protection in rental disputes.
Wider variety of mortgage products
The U.S. stands out for offering mortgage products tailored to real estate investors. DSCR (debt-service-coverage-ratio) loans, for example, allow investors to qualify for property purchases based on potential cash flow rather than personal income.
Additionally, the U.S. offers favorable loan options such as fixed-rate mortgages, with 30-year terms being common. Locking in fixed-rate debt over a long period benefits foreign investors buying U.S. real estate.
Canadian investors aren’t going anywhere
As the layers are peeled back, it becomes evident that U.S. real estate presents unparalleled investment opportunities and benefits compared to Canada. Expect to see continued interest from Canadian buyers in U.S. properties.
Yuval Golan is the founder and CEO of Waltz, a fintech-proptech-wealthtech startup.
This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners. To contact the editor responsible for this piece: [email protected]
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