International Home Shopping Trends: Canadian Interest in U.S. Real Estate Declines but Still Leads

As the global landscape shifts, international interest in U.S. real estate is evolving. According to the latest report from Realtor.com®, despite a slight overall decrease in international home shopping activity in the third quarter of 2025, Canadian buyers maintain their position as the leading source of international interest in U.S. properties. This article explores the nuances of this trend, highlighting market dynamics and economic factors that influence international buyers navigating the U.S. housing market.

A Year of Changes in International Home Shopping

International home shopping activity dropped marginally in the third quarter of 2025, with foreign consumers accounting for only 1.5% of online home search traffic in the United States. This percentage represents a slight decline from 1.6% recorded in the same quarter of the previous year, yet it is notably higher than the 1.2% recorded in 2019, indicating a resilient interest amid global uncertainties. According to Danielle Hale, the chief economist at Realtor.com®, various global economic uncertainties, policy changes, and currency fluctuations continue to create mixed demand conditions for international buyers.

Canadian Interest Waning Yet Dominant

Canada has long been the foremost source of international buyers in the U.S. real estate market. However, recent trends indicate a decline, with Canadian traffic accounting for only 32.1% of international online home search traffic, down from 36.6% the previous year. This decline coincides with the imposition of U.S. tariffs on Canadian goods, which may have tempered cross-border housing interests. Despite this downturn, Canadian buyers remain significant in certain metropolitan areas, such as Cape Coral, Florida (61.4%), and Phoenix, Arizona (61.0%).

Other countries contributing to international home shopper demand include the U.K. (6.5%), Mexico (5.6%), Germany (4.1%), and Australia (3.4%). This diverse interest highlights a continued global engagement with U.S. real estate.

Luxury Markets Face Unique Challenges

International buyers often gravitate toward higher-value properties, driven largely by investment motivations or relocation associated with professional engagements. An intriguing observation in Q3 2025 was that the median homeprice viewed by international buyers was 29.8% higher than that of domestic buyers. However, this percentage represents a narrowing gap from the previous two years, suggesting a cooling demand for luxury homes. Factors like currency volatility and general economic uncertainty have considerably impacted international buyers’ purchasing power.

Major cities like Los Angeles (173.6%), New York (49.2%), and Boston (23.8%) maintain significant price differences compared to domestic shoppers, cementing their status as prime destinations for luxury housing. On the flip side, Austin (18.6%) has emerged as an attractive market that balances affordability and economic opportunity, drawing interest from both investors and professionals.

Miami: The International Buyer Magnet

Miami continues to captivate international consumers, accounting for 8.4% of all international views for U.S. properties in Q3 2025, followed by New York (5.6%) and Los Angeles (4.8%). The potential for a diverse range of properties and a vibrant cultural scene keeps Miami at the forefront of international real estate interest.

Policy Shifts and Future Demand

The future of international demand in the U.S. real estate market will likely be influenced by new immigration policies and visa frameworks. As Jiayi Xu, a senior economist at Realtor.com®, notes, proposed visa programs aimed at attracting high-net-worth buyers could invigorate luxury markets, while diminishing demand could arise in areas traditionally reliant on H-1B visa holders like Austin and San Jose.

In conclusion, while Canadian interest in U.S. real estate has cooled, the overall appetite for U.S. properties among international buyers remains strong and multifaceted, reflecting ongoing engagement despite dynamic global conditions. As markets evolve, keeping an eye on future policies and economic trends will be crucial for stakeholders in the real estate sector.