Southbound strategy: Canadians buying US property

IN Partnership with

RBC on what US real estate trends reveal for Canadians seeking warmth, steady rent, and measured savings through careful structure, pre-approvals, and currency planning

CANADIANS CONTINUE their seasonal migration south, though recent economic and travel conditions have slightly altered patterns. While overall snowbird activity remains steady, some are adjusting timing or destinations in response to travel costs and market conditions. Inside that flow is a steady cohort that has been there for decades. They are Canadians who see a second home in the United States as both a lifestyle and an asset. The narrative today is not a sudden pivot to investing. It is a gradual tightening of the screws on a strategy that already existed. “Clients still want the lifestyle benefits of a home in the Sun Belt,” says Hatim Tichout, regional advisor with cross-border banking and US home equity financing at RBC, who has spent more than two decades in retail and commercial banking. He describes the purchasing climate in the past year as busy and steady rather than a sudden surge. “Canadians always look for asset diversification,” he says. “Real estate is one of them, and the US is close and familiar.” According to the National Association of Realtors, Canadians bought close to 11,000 US homes with a combined value of around US$6.2 billion.

RBC Bank is the only US bank dedicated to serving Canadians in the US. Whether our clients need a US bank account, credit card, loan, or mortgage, our solutions are available anytime, anywhere through online, mobile, and telephone banking – making it easy and convenient to bank with us in all 50 states. As a wholly owned subsidiary of RBC Royal Bank, we simplify banking in the US for Canadians working, living, or travelling across the border.

Where value still shows up

Florida suburbs and inland counties with lower insurance and taxes

“Some clients are selling in one county and buying in another with lower insurance premiums or property taxes or less impact from hurricanes”

Hatim Tichout, RBC

Three forces are shaping Canadian interest in US real estate, as reflected in recent NAR data showing that Canadians accounted for 14 percent of foreign purchases. First, affordability at home. In many Canadian metros, entry points have climbed beyond what investors want to underwrite. Several Sun Belt markets offer a wider selection of single-family homes and townhomes at price points that still pencil out with seasonal or short-term demand. “A lot of clients will go for two or three months,” Tichout says. “Then they put it with a property manager or a short-term rental platform so they can offset costs like property taxes and insurance.”

Second, currency exposure. A Canadian who earns US-dollar rent introduces a natural hedge into their household cash flows. Some buyers finance locally and convert only the down payment at today’s rate. They then make lump-sum or accelerated payments later if the exchange rate moves in their favour. That staged approach reduces the upfront currency hit and adds flexibility. Third, better process. There is more education around cross-border tax, title, insurance, and property management than there was a decade ago. Buyers who once treated a second home as a pure expense now model it like any other

investment line item, including HOA fees, cleaning and platform costs, vacancy assumptions, and reserves.

The most common sequencing mistake happens before anyone calls a lender. “Before even talking about mortgages, I always ask if they have consulted a cross-border tax advisor,” Tichout says. “Seventy to eighty percent have not.” Early advice determines how a property is titled, how any rental income should be reported in both countries, and where filings will be due. It also flags estate and succession issues that buyers do not always consider. When this step is missed, the consequences tend to appear

during a sale or once rental income begins to flow. Title changes and reporting adjustments are sometimes possible, but they take time and money. Tichout’s team has tried to get in front of this with regular client sessions that cover buying, selling, and tax implications. The aim is straightforward: make the first decisions the right ones, and the rest of the process is easier.

Why the conversation has more urgency now

Put structure and tax first, not last

Published November 03, 2025

“I have seen an increase in volume in Texas. I am starting to see Canadians inquire about North and South Carolina”

Hatim Tichout, RBC

Arizona metros with steady long-term rental demand

Texas growth corridors near major employers and airports

Carolinas for larger homes at moderate price points and rising Canadian interest

All-cash remains common About 57% of Canadian purchases were all-cash in 2024–2025

Canadians − financing and pricing snapshot

Median price point Canadian buyers’ median purchase price was $437,500 in 2025

Year-over-year spend per home Average Canadian purchase price was about $437,500 in 2025, down approximately 32% from $548,600 in 2024

Canadian footprint among foreign buyers Canada represented 14% of foreign purchases, with around $6.2B in spend over April 2024–March 2025

Florida remains the first stop for many Canadian buyers. What is changing are the micro-moves inside the state. “Some clients are selling in one county and buying in another with lower insurance premiums or property taxes or less impact from hurricanes,” Tichout says. A few miles inland can mean different insurance dynamics while keeping access to airports and amenities. The search pattern is less about a single city and more about neighbourhoods that balance carrying costs with year-round livability. Arizona continues to attract Canadians who want lower property taxes and simple ownership structures. “I have seen an increase in volume in Texas,” Tichout notes, pointing to affordability in several metros, and steady demand for rentals. A newer thread in his conversations is the Carolinas. “I am starting to see Canadians inquire about North and South Carolina,” he adds. Larger homes at moderate prices, reasonable carrying costs, and the option to blend personal use with renting seem to be the main draws.

Where Canadians focus, and how choices inside markets are changing

A common misconception is that Canadians only recently discovered Florida as an investment market. The historical record says otherwise. International buyers in Florida have

The investment angle is not new, but the execution is tighter

long been motivated by vacation or rental use, and the Canadian share of foreign activity is both visible and durable. The latest national survey reinforces that point, with the Canadian footprint at 14 percent of foreign purchases and a clear presence in resort areas. What is evolving is how Canadians structure the purchase and manage the operating line items. Tichout hears it in the questions clients ask before they tour homes. People want early quotes on insurance. They want clarity on local rules for short-term rentals and homeowners’ associations. They ask about platform fees, cleaning, and realistic vacancy. They look for a property manager that can coordinate turnovers and collect rent in a way that is easy to reconcile for tax reporting later.

The conversation about financing is less about leverage and more about control. “We have a lot of pre-approvals right now,” Tichout says. He points to 120-day approval windows that let buyers track inventory, test insurance quotes, and watch the exchange rate so they can move quickly without guessing at costs. RBC’s cross-border pre-approvals allow Canadians to leverage their Canadian credit history when applying for US financing or credit products. This is an advantage rarely offered by American lenders, who typically require a US credit record. All-cash transactions remain common among foreign buyers, and roughly 57 percent of Canadian purchases were all-cash in the latest year. Many Canadians are still comfortable with a finance-first path. A 20 percent down payment sets the budget and contains the initial exchange outlay. “Clients are more currency conscious,” Tichout says. Some convert only what they need for the down payment, then pay down principal as the Canadian dollar improves. For clients with liquid portfolios, this preserves flexibility and leaves room to adjust if insurance or tax changes alter carrying costs.

Currency, financing, and pre-approvals

Tichout expects activity from Canadians to remain steady. “There is a lot of demand,” he says. “People are getting pre-approved and waiting to see how the market adjusts with upcoming interest rate decreases.” In the end, this is less about chasing a new opportunity and more about sequencing familiar decisions with care. Canadians already make up a meaningful slice of the foreign buyer market segment, and Florida will likely remain their first stop, but the difference now is discipline. The buyers who fare best choose the right county before the right city, price insurance before they dream about decor, settle title and tax before they sign, and use pre-approvals and financing to stage currency rather than guess at it. That turns a winter home into a line item that earns US dollars when it should, rests when it must, and fits cleanly inside a broader plan. For advisors, the real value is translating sun and convenience into structure and cash flow, so a long-standing habit becomes a durable asset rather than a seasonal expense.

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