While some studies claim Canadians aren’t buying in the US, one company’s data paints a different picture
It’s been a rocky year between the United States and one of its strongest allies, Canada. Some of that turmoil has carried over to the housing market.
Canadians have faced both economic and emotional battles from the US. From an economic standpoint, increased tariffs and duties have hurt the Canadian economy. Emotionally, the Trump administration’s talk of making Canada the “51st state” threatened to torpedo decades of goodwill.
Those factors are why many were not surprised when reports surfaced that Canadian homebuyers were pulling back from US property searches. Redfin reported in September that web searches were down 34.2% year over year, while Realtor.com reported earlier this month that search traffic dropped more than 4% from last year to 32.1%.
However, one executive who works with foreign investors to buy US property doesn’t think search data tells the whole story.
Yuval Golan (pictured top), founder and CEO of Waltz, said they’re still seeing strong Canadian demand, as evidenced by inquiries on the company’s website. And it’s mainly because the returns on investment in the States are still stronger.
“Canadians are saying rent yields in Canada are low, taxes are high, and the price to purchase property is very high compared to America,” Golan told Mortgage Professional America. “Twenty-five percent of my demand is from Canada.”
Return on investment is stronger
Golan said Canadian buyers are not only taking advantage of lower prices in the US, but they’re specifically looking at US states where they can find good values on home prices. This allows them to maximize the return on investment.
“In Texas or in Ohio or in parts of Florida and Arizona and other markets, Canadians like the price,” he said. “To buy a single-family home for a three- or four-bedroom, two-bath home is $300,000 to $500,000. They put a down payment of $150,000, and the rent yield will be at about a gross rate of 8% to 10%.”
There has been discussion about a weakening US Dollar, especially during the recent government shutdown. However, Golan said foreign investors see this as an opportunity for their home currency to go farther in the US. Because of this, he said demand has been steady.
“People invest in real estate to buy their future, build passive income, fight against inflation, and Canada is the next-door country,” Golan said. “I don't see any slowing of demand. Maybe some are saying, ‘Oh, it's too expensive.’ When the US market crashed in 2008, that was the highest influx of foreign investment into US real estate.
“Why is that? The largest market in the world has crashed, which builds an opportunity. You invest in America and the USD, and then everything recovers. It bounces back. Now, the USD isn’t as strong as it used to be. People are saying, ‘Great, I can buy more USD with my home country currency. So when that stabilizes, I own more properties.’”
New construction a main target
Golan said when analyzing what foreign investors are looking to purchase, new home construction is one of the strongest segments. While the data on this can be incomplete, he can draw some trends from the data that is available.
“Why do foreign nationals like new construction?” Golan said. “Very simple, if you live in Canada, if you live in Germany, if you live in Colombia, you want to buy something you don't need to deal with. When you buy a new property, there's an HOA and a management company. It's a new construction. You have a warranty for all your equipment, and someone runs it.
“When you buy an old property, you never know what's happened. So you have professional investors on a lower budget, and you just want to have something that is hassle-free.”
US homebuilders leaned heavily on price cuts and incentives in November, yet confidence stayed weak as NAHB’s Robert Dietz of the National Association of Home Builders pointed to soft demand and strained household finances.https://t.co/hoOCs0ffof
— Mortgage Professional America Magazine (@MPAMagazineUS) November 18, 2025
Not only is new home construction a major mortgage target for foreign investors, but refinances are also an area where Golan sees significant traction. When these investors who already have property come to refinance, they’re looking to unlock equity to buy additional investments.
“In my data, in the last few quarters, I had 50 to 70% refinances,” he said. “You know what happens when someone does a refinance? They buy more. They're not liquidating their assets. They're just saying, ‘We're cashing in on all the appreciation we have. We didn't sell the properties. We're just refinancing to buy more properties.’”
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