Canadian interrest in American real estate is seeing a modest uptick in the first quarter of 2026. Following a slump triggered by 2025 tariff policies, buyers are returning to US listings, though economic headwinds remain.

The 37.8 percent rebound in international demand

Canadian homebuyers are gradually increasing their presence in the United States housing market. According to Realtor.com marketplace data, Canadian shoppers accounted for 37.8 percent of all international traffic during the first quarter of 2026. This represents a notable improvement from the 34.8 percent share they held during the same period in 2025.

While this upward trend is evident, the recovery has not yet reached the heights seen in previous years. In the first quarter of 2024,Canadians represented a much larger 41.8 percent of international online traffic.. this suggests that while the exodus caused by recent trade tensions is reversing,the enthusiasm of Canadian investors has not fully returned to pre-tariff levels.

Sunbelt dominance in Cape Coral and Naples

The renewed interest from Canada is heavily concentrated in specific US geographic hubs, particularly in the Sunbelt. Cape Coral, Florida, has emerged as the primary destination, with 71 percent of its total international demand coming from Canadian buyers. Naples, Florida, follows closely behind, with Canadians making up 70.9 percent of its international interest.

Other high-growth markets for Canadian buyers include Phoenix, Arizona, which saw 66.9 percent of its international traffic from Canada, and North Port, Florida, at 66.2 percent. the report highlights significant year-over-year growth in these areas, led by Cape Coral with a 9.2 percentage point increase and Naples with an 8.8 percentage point jump between the first quarters of 2025 and 2026.

Tariff fallout and the weak Canadian dollar

Economic volatility continues to act as a ceiling on the scale of this market reentry. The decline in Canadian activity seen in 2025 was largely driven by the Trump administration's high tariff policies,which created significant friction in cross-border economic relations. This political tension, combined with a weak Canadian dollar, has significantly diminished the overall purchasing power of Canadian residents looking to buy in the US.

The broader international market is also seeing shifts in composition. As reported by the Realtor.com data, non-U.S. homebuyers now represent a smaller slice of the total online shopping demand than they did last year, dropping to 1.6 percent from 1.8 percent. while Canadians remain the dominant force among international buyers—surpassing Mexico (6.4 percent) and the United Kingdom (5.9 percent)—the total volume of foreign interest is tightening.

Why interest is cooling in Chicago and Atlanta

Not all American markets are benefiting from the Canadian return,leaving several major cities with declining engagement. Traffic from Canadian buyers in Chicago, Illinois, fell by 2.2 percentage points compared to the first quarter of 2025. Similarly, Atlanta, Georgia,saw a year-over-year decline of 0.2 percentage points, and a much sharper drop of 5.8 percentage points when compared to the first quarter of 2024.

This divergence raises questions about whether Canadian buyers are becoming more selective or if specific regional economic factors are deterring them from certain metropolitan areas. It remains unclear whether the cooling interest in cities like Chicago and Atlanta is a permanent shift in buyer preference or a temporary reaction to localized market conditions.