International Demand Shifts as Sun Belt Markets Surge, and Canadian Interest Partially Rebounds a Year after U.S. Tariffs Rattled Cross-Border Home Searching

AUSTIN, Texas, May 26, 2026 /PRNewswire/ — New research from Realtor.com^® reveals a shifting landscape for international home shopping demand across the United States. In the first quarter of 2026, international home shoppers accounted for 1.6% of online shopping demand on Realtor.com^®, up from 1.2% in the first quarter of 2020. Miami held its place as the top U.S. destination for international buyers, drawing 10.3% of all international online views. Meanwhile, Los Angeles continued a six-year slide in global interest, while Canadian buyers – still reeling from the effects of U.S. tariffs – showed signs of cautious re-engagement with the U.S. market.

International Buyers Are Turning Away from Los Angeles

Los Angeles has long been one of the most coveted addresses for international homebuyers, but its grip on global attention is slipping. International interest in the market has fallen steadily, with its share of international online views dropping from 7.9% in the first quarter of 2020 to 4.6% in the first quarter of 2026.

The beneficiaries are clear. Dallas, Texas has emerged as a rising destination, drawing growing interest from buyers in North America (excluding the U.S.), Oceania, and South America. North American interest in Dallas grew from 1.6% in 2020 to 2.7% in 2026; Oceania from 3.0% to 4.2%; and South America from 1.5% to 2.3%.

Miami captured gains from European buyers, with interest rising from 6.9% to 8.0%, while Asian buyers increasingly turned to New York, where their interest climbed from 6.2% to 6.6%.

“Los Angeles’s declining global appeal is less about losing its allure and more about becoming less competitive,” said Danielle Hale, chief economist at Realtor.com^®. “Skyrocketing insurance costs from wildfires, and California’s high tax burden, have made ownership increasingly punishing for wealthy international buyers. As high-net-worth residents relocate to Miami and Dallas, the social networks that once made Los Angeles a must-own address are thinning — and global interest follows. Sun Belt markets now offer a compelling combination of affordability, growth, and lower taxes that Los Angeles simply can’t match. For today’s internationally mobile buyer, Los Angeles is no longer the default choice.”

Top U.S. Destinations for International Home Shoppers (2026Q1)

Canadian Interest in U.S. Homes Is Recovering — But 2025 Tariffs are Not Forgotten

One year after the United States imposed sweeping tariffs on Canadian goods, the effects on cross-border housing demand remain measurable. Canadian home shoppers remain the No. 1 source of international demand on Realtor.com^®, accounting for 37.8% of international traffic in the first quarter of 2026. But that figure tells a story of disruption and incomplete recovery: Canadian interest plunged from 41.8% in the first quarter of 2024 — before tariffs took effect — to 34.8% in the first quarter of 2025 in the immediate aftermath. The partial rebound to 37.8% this year signals cautious re-engagement, but interest remains well below pre-tariff levels.

Rounding out the top five sources of international homebuying interest: Mexico (6.4%), the United Kingdom (5.9%), Germany (3.9%), and Australia (3.0%).

Canadian buyers showed the strongest affinity for Sun Belt and Southwest markets. Cape Coral, Fla., led all markets with 71.0% of its international demand coming from Canada, followed by Naples, Fla. (70.9%), Phoenix (66.9%), North Port, Fla. (66.2%), Tampa (58.8%), and Riverside, Calif. (56.0%). These same markets also recorded the largest year-over-year gains in Canadian interest between 2025 and 2026, led by Cape Coral, Fla. (+9.2 percentage points), Naples, Fla. (+8.8 ppt), and Phoenix (+6.7 ppt).

“Canadian buyers are re-entering the U.S. market, but cautiously,” said Jiayi Xu, economist at Realtor.com^®. “The rebound in interest we’re seeing in Sun Belt and Southwest metros reflects that the appeal of warm weather and relative affordability hasn’t faded — but the full recovery of pre-tariff enthusiasm has yet to materialize. These trends underscore how geopolitical and economic policy decisions can have lasting ripple effects on real estate demand, even across borders.”

Markets with Highest Share of Canadian International Demand (2026Q1)

Methodology

This report analyzes international views of for-sale listings on the U.S. Realtor.com® marketplace from January to March 2026 and previous quarters, as noted. International traffic is identified using IP geolocation and excludes domestic U.S.-based traffic. This report is updated twice a year.

About Realtor.com^®

Realtor.com^® pioneered online real estate and has been at the forefront for over 25 years, connecting buyers, sellers, and renters with trusted insights, professional guidance, and powerful tools to help them find their perfect home. Recognized as the No. 1 site trusted by real estate professionals, Realtor.com® is a valued partner, delivering consumer connections and a robust suite of marketing tools to support business growth. Realtor.com^® is operated by News Corp [Nasdaq: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc.

Media Contact: Mallory Micetich, press@realtor.com

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SOURCE Realtor.com