Canadians were the top foreign buyers of U.S. housing from April 2023 to March 2024, acquiring 7,100 housing units for approximately $5.9 billion US, according to a report from the National Association of Realtors.

Canada was home to 13 per cent of buyers in the period, up from 10 per cent in the previous year. The uptick made Canadians No. 1 in the overall number of existing homes purchased.

In terms of dollar volume of existing homes purchased, Canadians were second to Chinese buyers at $7.5 billion (all figures US unless otherwise noted). Canadians were also behind the Chinese on the average purchase price: $834,000 for Canadian buyers; $1,255,600 for Chinese buyers.

Detached single-family homes were the most commonly purchased housing by Canadians at 69 per cent, followed by condos at 18 per cent, townhomes at eight per cent and residential land at four per cent.

Florida was the top destination for Canadians, making up 41 per cent of sales. Arizona was next at 23 per cent, then Hawaii at nine per cent.

The 2024 Profile of International Transactions in U.S. Residential Real Estate is based on an online survey conducted from April 4 to May 19 of 17,060 Realtors, of which 1,407 reported a foreign buyer. It covers non-resident foreigners (non-U.S. citizens with permanent residence outside the country) and resident foreigners (non-U.S. citizens who are recent immigrants or non-immigrant visa holders who reside for more than six months in the U.S. for professional, educational, or other reasons.)

What Canadians are doing with their purchased housing

Just under half (49 per cent) of Canadians intend to use their U.S. housing as a vacation home. The second-most popular option was using the housing for vacation and rental at 22 per cent. Sixteen per cent said they would use it as a primary residence. Eight per cent surveyed said it would be a residential rental, while four per cent were not yet sure about the potential use or uses.

Among all foreign buyers, 45 per cent said it would be a vacation home, rental property or both.

Canadian buyers showed the most affinity for a home in a resort area at 37 per cent, exceeding the average foreign homebuyer at eight per cent. Central or urban areas were second at 34 per cent. A small town or rural area made up 16 per cent of location preference, followed by suburbs at 13 per cent.

Canadian buyers had the second-highest average purchase price because they primarily buy “in resort areas which typically bring higher price tags,” the report states.

Just as they were the top buyers, Canadians were the top sellers of U.S. housing, making up 24 per cent of international sellers.

How foreign buyers are purchasing housing

Economic recoveries around the world and a stronger U.S. dollar have made purchasing housing more expensive for foreign buyers, the National Association of Realtors writes. The number of existing homes bought by foreign buyers in the most recent period was the lowest since the association estimated the figure in 2009 - a 39 per cent decrease from the previous period at 30,300 fewer buyers.

But “stock market and wealth gains have allowed foreign buyers to spend in the U.S.,” the report states, “where single-family home prices remain affordable compared to the cost of a property in a central business district in many other countries.”

For example, the average price per square metre in Canada as of June is $12,504, the association says, higher than all the U.S. metros listed in the survey.