The Chilling Effect: How U.S. Trade War Rhetoric Affects Canadian Interest in American Real Estate
As the U.S. housing market begins to cool, the belligerent rhetoric emanating from the White House about potential annexation and combative trade negotiations is having a chilling effect on Canadian interest in owning American property. According to the National Association of Realtors, Canadians made up the largest share of foreign buyers of U.S. residential real estate in 2024, with 13% of the foreign purchase market – followed by China and Mexico at 11% each. In five out of the last ten years, Canadians have led foreign purchases.
Miles Zimbaluk, who came to the Phoenix area from Saskatchewan after the 2008 subprime crisis and “fell in love” with Arizona, has witnessed a significant change in the market. “I never expected to see anything like this,” he said in an interview. “People have absolutely been turned off by the talk of annexation.” The rhetoric has pushed some people to sell their second homes in Arizona, and others are deciding to hold off rather than buy.
In the first quarter of 2025, Canadians have listed more than 700 homes for sale in Maricopa County, compared to 100 homes in the same period last year. Canadians own about 30,000 properties in the county, but the data suggests that their interest is waning. Data from Realtor.com confirms that Canadians still made up the largest share of online home viewers in the first quarter, at 34.7%, but that’s down sharply from 2024, when they represented 40.7% of house-hunters.
While a slowdown in demand isn’t a huge concern for now, it’s definitely something to keep an eye on. Canadians typically buy in warmer metros with lower taxes – like Arizona and Florida – and as second-home buyers, they are more interested in higher-priced properties. As such, those market segments are being watched most closely.
The U.S. housing market is also slowing down, with sales of previously-owned homes at the slowest pace for any April since 2009, according to the National Association of Realtors. The pace of sales set that month was below the 4.06 million mark achieved in 2024, which was the worst year since 1995. In South Florida, real estate agents are “absolutely” seeing less demand from Canadians due to uncertainty and a feeling of not being welcome.
Many Canadians are motivated by factors other than politics, such as rising home prices and an unfavorable exchange rate. The “loonie” has weakened compared to the U.S. dollar in recent months, making it more expensive for Canadians to buy American goods. Additionally, the longstanding sense of America as a welcoming haven with friendly people has been damaged by the White House’s stance on South- and Central American immigrants.
“A lot of people are saying they don’t feel comfortable being in the U.S.,” Zimbaluk said. While no one is concerned for their safety, per se, he has heard of some people with Canadian license plates having nasty notes left on their windshields. “There’s just so much uncertainty,” he added. “Everyone is trying to find their own way.”
In conclusion, while the U.S. housing market may be experiencing a slowdown due to various factors, the political rhetoric coming from the White House is having a chilling effect on Canadian interest in owning American property. As a result, real estate agents and analysts are closely monitoring this trend and its potential impact on the overall housing market.
The increasingly hostile trade rhetoric between the U.S and Canada during their economic dispute has a chilling effect on Canadian interest in American real estate, which threatens to stifle investment opportunities south of our border.
The Chilling Effect: How U.S.'s aggressive trade rhetoric proliferates fear and uncertainty in the Canadian real estate market, thereby undermining long-term investment interest.
The Chilling Effect presents a compelling analysis on how the U.S.'s rhetoric in their trade war impacts Canadian sentiment towards American real estate investments, painting an intricate web of mixed signals and perceived risks that could alter long-standing economic ties between both nations.
The direct discourse of U.S.'s trade war has a chilling effect on Canadian' interests in American real estate, as the perceived risks and economic uncertainty become formidable deterrent to cross-border investment decisions.
The Chilling Effect highlights how inflammatory U.S trade war rhetoric has chillingly undermined Canadian interest in American real estate investments, illustrating a direct impact on international commercial confidence amid global economic exchanges.
The recent escalation of trade war rhetoric between the U.S and Canada has had a profound 'Chilling Effect' on Canadian investment interest in American real estate, affecting both short-term capital flows into America as well as longer term disposition towards asset purchases by Canadians.
This informative essay, 'The Chilling Effect: How U.S Trade War Rhetoric Affects Canadian Interest in American Real Estate,' lucidly exposes the damaging impact of heightened political rhetoric on cross-border investments and real estate dynamics between Canada and America.
The escalation of US trade war rhetoric has unnervingly chilled the enthusiasm for investing in American real estate among Canadian individuals and firms, underscoring how policy uncertainty can ultimately dampen cross-border economic activity.
The Chilling Effect highlights how the rhetoric of U.S.'s trade war has created a frosty climate that is detrimentally impacting Canadian investment interest in American real estate, raising concerns for both economies' long-term growth and stability across sectors."
