Despite the headlines, Canadians are flocking to the U.S.

Trade wars. Tariffs. Trump. Since the start of 2025, the media has been hyper-focused on the three Ts.

The relationship between the U.S. and Canada has been portrayed as adversarial, and one that’s created a chasm between traditionally close friends on the world stage. Despite the headlines, Canadians are flocking to U.S. real estate.

What’s driving this movement? Some reasons are obvious, but there’s much more beneath the surface than you might expect.

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, accounting for 14% of all international purchases. This is the highest percentage of Canadians purchasing U.S. real estate since 2015.

Canada shares a vast border with the United States, speaks a common language, and enjoys many cultural similarities. A significant proportion of the Canadian population lives close to the U.S. border, so proximity to states like Ohio and Michigan makes investing in the U.S. feel like investing in their own backyard.

The U.S. also offers popular Canadian vacation and snowbird destinations. It’s natural that they would look at real estate in areas near where they vacation as they already know those markets. You’ll often see Arizona and Florida as top states for Canadians in the NAR reports for exactly this reason.

Affordable property options and wealth preservation

It’s no secret that the U.S. dollar has historically been stronger than the Canadian dollar. On average, over the last five years, one Canadian dollar has been worth $0.75.

Moving money to the U.S. may seem counterintuitive, but relative to major cities in Canada, such as Toronto and Vancouver, U.S. property prices enable Canadian dollars to go further. Someone buying a single house in Canada may be able to spread that same downpayment across multiple properties in certain U.S. markets, such as cities in the Midwest and Sun Belt, and expect higher returns.

Another key component is that the investment math tends to make more sense with lower-priced properties. Places with higher price-to-rent ratios, where rent is relatively high when compared to the cost to buy a property, offer cash flow opportunities that would be hard to come by without paying all-cash in expensive Canadian metros. On top of that, Canada has very high property taxes that eat into ROI, compared to some U.S. states.

The final piece to this is that Canadians who own U.S. property preserve their wealth in a stronger currency, in an asset class that has tripled in value over the past 20 years. These gains can then be transferred back to Canadian dollars at favorable rates.

Landlord-friendly states

Landlords depend on rental income to cover their mortgage payments. That becomes problematic if tenants fall behind on rent, leaving landlords responsible for paying the mortgage themselves.

What does that have to do with investing in U.S. real estate?

Canadian landlord-tenant laws often align with U.S. states such as New York or California, which heavily favor the tenant when it comes to potential disputes. In contrast, the U.S. 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, therefore, ways to incentivize tenants to pay rent or vacate.

From the investor’s perspective, operating in a landlord-friendly state can save them money and provide further protection in the event of disputes.

Wider variety of mortgage products

The United States is unique in that it offers mortgage products that cater specifically to real estate investors. For example, DSCR (debt-service-coverage-ratio) loans allow investors to qualify for investment property purchases based on the potential cash flow as opposed to the individual’s income.

There’s also more favorable loan options. The U.S. has fixed-rate mortgages, with 30 years being the most common length. Being able to lock in fixed-rate debt over a long time horizon is advantageous to many foreigners buying U.S. real estate.

Canadian investors aren’t going anywhere

As you peel back the layers, it’s clear that U.S. real estate offers investment opportunities and benefits unmatched in Canada. Look for Canadians to continue buying property across the U.S.

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]