What's Happening?
Realtor.com has released its latest International Demand report, indicating a slight decline in international home shopping activity in the U.S. during the third quarter of 2025. The report highlights a decrease in Canadian interest, which remains the largest
source of international traffic but has dropped from 36.6% in 2024 to 32.1% in 2025. This decline is attributed to trade tensions and exchange rate volatility following U.S. tariffs on Canadian goods. Despite the decrease, Canadian buyers continue to dominate traffic in key U.S. markets such as Cape Coral, Florida, and Phoenix, Arizona. The report also notes that international shoppers are generally interested in higher-end properties, with the median home viewed by international buyers being 29.8% more expensive than those viewed by domestic shoppers.
Why It's Important?
The decline in Canadian interest in U.S. real estate reflects broader global economic uncertainties and policy shifts that are affecting international investment patterns. This trend could impact the U.S. housing market, particularly in regions heavily reliant on foreign investment. The cooling demand for luxury homes suggests a shift in international buyer preferences, potentially affecting property values and market dynamics in high-end real estate markets. The ongoing engagement from international buyers, despite the decline, indicates sustained global interest in U.S. housing, which could influence future market trends and economic policies.
What's Next?
Future international demand for U.S. real estate may be shaped by new immigration and visa policies, which could lead to diverging trends. Proposed visa programs may attract high-net-worth buyers to luxury markets, while restrictions on work visas could impact demand in innovation-driven areas. These policy developments, along with global market conditions, will continue to reshape the landscape of international real estate investment in the U.S.
