Canadians Shifting Away from U.S. Properties: What this Could Mean for Domestic Real Estate

A new Royal LePage® survey points to an emerging trend among Canadians who own property in the United States; many of them are preparing to sell. Even more noteworthy for Canadian real estate is that a significant share of these owners intend to reinvest their proceeds back into Canada, a move that could influence domestic markets in the months ahead.

Why Canadians are Selling their U.S. Properties

Royal LePage’s findings show that 54% of Canadians who own U.S. residential real estate plan to sell within the next year. Among them, an uncertain political climate is the most frequently cited factor, with 62% pointing to dissatisfaction with the current U.S. administration.

However, the survey also highlights other important reasons. About one-third of respondents referenced personal or financial motivations, such as shifting retirement plans, lifestyle changes or the desire to simplify cross-border finances. Environmental risks were also mentioned, with 5% of prospective sellers citing concerns about extreme weather; among those who have sold within the last year, 22% pointed to environmental considerations as the main reason.

Reinvesting Back in Canada

For Canadian markets, the key takeaway is not just the decision to sell properties south of the border, but what happens next. Roughly one-third of respondents (32%) who have recently sold or are planning to sell their U.S. properties said they plan to reinvest the proceeds in Canadian real estate. 

Increased Foreign and Domestic Interest in Canadian Real Estate

Royal LePage also reported a pattern of increased online interest in Canadian real estate during periods of political tension in the U.S., suggesting that both domestic and international buyers are paying closer attention to Canadian opportunities during uncertain times. While this does not necessarily translate into transactions, it does indicate a rising perception of Canadian real estate as a comparatively stable asset class.

What this Could Mean for Canadian Real Estate

For Canadian investors, the return of capital from U.S. sales may have several implications. If even a fraction of the funds are reinvested domestically, markets already challenged by limited supply could see added demand. The impact would be most noticeable in cities and regions where affordability and lifestyle advantages align with the preferences of returning buyers, who may be seeking properties that offer comparable seasonal or lifestyle benefits.

It is possible that some investors will look beyond Canada’s largest urban centres, where prices remain high. Secondary and recreational markets could benefit as reinvestment targets, with buyers seeking better value or properties that serve as retirement or seasonal homes. For those already active in these areas, the arrival of new demand may strengthen property values or rental demand over time.

Balancing Opportunity and Risk

For Canadian real estate investors, this shift offers both opportunities and considerations. On one hand, the reinvestment of capital could create additional liquidity and support property values in certain markets. Investors holding properties in attractive regions may find resale prospects improve, while those considering new acquisitions could see growing competition.

It is important, however, to remember that while 54% of Canadian U.S. property owners say they intend to sell, only a small fraction of them have indicated plans to redirect funds into Canada. The overall impact on domestic markets could be noticeable on a microlevel, but not necessarily transformative. Investors should remain cautious about assuming a wave of returning capital will dramatically change market conditions.

There are also other risks to consider. Increased demand could, in certain markets, put upward pressure on prices, potentially reducing investment yields. Policymakers may also continue to monitor affordability and could introduce further measures if price growth accelerates. Finally, investors should remember that trends are subject to change: if political or economic conditions in the U.S. stabilize, demand for American properties could rebound.

A Shift Worth Watching

The Royal LePage survey highlights how Canadian property owners are responding to changing conditions abroad, and are increasingly looking to sell. Some, such as snowbirds, may seek Canadian properties for personal enjoyment only, to replace their winter home in the U.S., while investors may need to re-evaluate their strategies to adjust to these shifts and the potential for more interest in key Canadian markets.

RLP InvestorsEdge™ can help you navigate any impacts from these shifts, with expert investment advisors who have completed advanced training through the exclusive Broker’s Playbook™ Masterclass Series and have the tools, insights and strategic support needed for informed decision-making, even during periods of change.