Since 2009, the National Association of Realtors® (NAR) has conducted an annual survey to measure the volume of U.S. residential real estate transactions with international clients. From April 2024 to March 2025, foreign buyers spent $56B on 78,100 home purchases.* These figures mark a 44% increase from last year. While it was the first increase since 2017, it is still the second-lowest level since NAR began reporting foreign buyer purchases in 2009.
The effects of a sluggish housing market
The American real estate market experienced its lowest annual level of sales since 1995 in 2024-2025, down 2.0% year-over-year. The stagnant environment is largely due to stubborn mortgage rates, which remain elevated in attempts to manage inflation. The result is limited inventory and, as a consequence, higher housing prices.
Still, home prices in the U.S. remain affordable for foreign buyers, especially when compared to the cost of property in the urban centres of many other countries.
Canada’s share of foreign buyers rises, but China reclaims top spot
Over the past few years, Canada and China have alternated holding the top spot in terms of share of foreign buyers. In 2024–2025, Canada accounted for 14% of purchases, up from 13% the previous year, while China expanded its share to 15%, giving it the largest share overall.
Mexico followed at 8%, with India at 6% and the United Kingdom at 4%.
As in previous years, Chinese buyers spent the most on American real estate, investing $13.7 billion – nearly double the year before – compared to $6.2 billion from Canadian buyers.
Despite rising prices, American real estate stays more affordable
A buildup of demand and lower available housing inventory has brought about slow yet consistent growth in U.S home prices. The median existing-home sales price reached $414,000 in April 2025, up 1.8% year over year. The average purchase price was $569,300.
Canadian buyers also faced a compounding challenge of currency weakness. By April 2025, the average exchange rate had slipped to 0.715 USD per CAD – about two cents lower than a year earlier.
Even so, U.S. single-family homes continue to look relatively affordable to many international buyers, especially when compared with housing costs in their own countries. For Canadians, this contrast is particularly sharp against the backdrop of persistently high prices in major hubs.
Average price per square metre: Canadian cities
(Source: Properstar.ca)
| Toronto, ON | $9,880 |
| Vancouver, BC | $12,281 |
| Montreal, QC | $6,975 |
Average price per square metre: U.S. cities
| San Diego-Carlsbad, CA | $5,870 |
| Naples-Imokalee-Marco Island, FL | $4,900 |
| Urban Honolulu, HI | $6,600 |
| Los Angeles-Long Beach-Glendale, CA | $4,890 |
Canadians are seeking savings
Even as U.S. home prices have climbed, Canadian buyers are spending less than in previous years. On average, the properties they purchased were 32% cheaper ($437,500 in 2025 versus $548,600 in 2024), suggesting buyers are either becoming savvier or increasingly price conscious.
Sunny destinations are an overwhelming choice for Canadians
The survey highlights a clear trend: Canadians are buying U.S. properties primarily for sunshine getaways and leisure living. Florida continues to dominate as the top destination, attracting 21% of foreign buyers overall. Among Canadians, that preference is even stronger—nearly half (48%) of their U.S. purchases last year were in the Sunshine State.
Arizona (12%) and California (9%) ranked next, meaning roughly 7/10 purchases by Canadians last year were in the Sun Belt.
The types of properties Canadians bought reinforce a focus on leisure. Nearly half (49%) purchased solely for vacation use – the highest proportion among foreign buyers, with the U.K. a distant second at 27%. Canadians also gravitated toward townhouses and condos at higher rates than other groups, reflecting their intent to use these properties as vacation homes or rental units. About 17% of Canadian purchases were in resort areas, underscoring that many are seeking second homes or retirement properties close to beaches, golf courses and other lifestyle amenities.
Stiff interest rates lead to more all-cash purchases
With U.S. mortgage rates still elevated, many foreign buyers are sidestepping financing altogether. In 2025, 57% of Canadian buyers paid all cash for their purchases. While buying a property with cash means buyers bypass interest rates, the move does mean a need to exchange a sizeable lump sum upfront. And with the Canadian dollar weak against the USD, that currency exchange can sting.
Financing a U.S. property can be an attractive option to buyers who aren’t ready to convert a large sum of money up front.
Buying American real estate: The bottom line
This year’s NAR report confirms that Canadians remain a driving force in American real estate. Despite currency headwinds, rising home prices and higher borrowing costs, Canadians continue to see value south of the border – especially in lifestyle-driven markets like Florida, Arizona and California. They are gravitating toward vacation homes, rental properties and resort-area living, with many choosing low-maintenance housing options such as townhomes and condos.
This trend underscores a familiar story: Canadians are chasing sunshine, affordability and lifestyle opportunities. For many, American real estate is not just a second property – it’s a long-term investment in both quality of life and future financial security.
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* All statistics from National Association of Realtors®: Profile of International Transactions in U.S. Residential Real Estate 2025.
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