Americans eye Canada, but the door isn’t wide open

• Americans show interest in moving to Canada amid political changes, but foreign buyer bans and tax laws hinder migration.
• Real estate brokers report a decline in US buyer interest due to taxes and restrictions on short-term rentals.
• Experts call for policy changes to improve housing affordability and support both domestic and international buyers.

Leaving America: The US and Canada have grappled with transition and uncertainty as Trump prepares to take office. Americans in particular have piqued interest in immigrating to Canada, but tax laws and foreign buyer bans have halted a mass exodus of Americans.

Migration stalled: Angela Langtry, a Montreal-based real estate broker with Century 21, shared her experience of politically motivated American migration: "Last time Trump won in 2016, I definitely did within the first week after the results were announced. That election, I had three Americans calling me who wanted to move to Canada, but it never panned out."

But this time, the situation looks different. "Two years ago, Canada put into effect a foreign buyers ban in major metropolitan cities to try to keep housing affordable for Canadians and that could be blocking that phenomenon." Langtry added.

Sabrina Staunton, a broker from Faris Team in Midland, ON, also noted declining US buyer interest due to taxes: "US buyers haven’t bought Canadian real estate in years in this area. The foreign tax has wiped them out in the Golden Horseshoe".

Angela Langtry on Airbnb restrictions: The foreign buyers ban has created barriers for all international purchasers, including Americans. Even if they were able to meet the requirements, logistical challenges such as restrictions on short-term rentals, often deter them. "A lot of them want to Airbnb property when they’re not here, but it’s hard to find condo buildings that allow short-term rentals," Langtry explained.

Nevertheless, there are legal opportunities outside urban hubs. "Americans can buy outside of the big cities, so more in the countryside… maybe an hour outside of Montreal in cottage country," she said.

AL on Demographics of US buyers: Despite restrictions, some US buyers remain active in specific segments. Langtry says, "Lately, I’ve helped American parents buy for their McGill students. McGill is a big international university here in Montreal."

Others are drawn to Montreal’s charm. "I had New York clients buy here because it’s a 45-minute flight, no time change, and they feel like they’re in Europe," she noted.

Policy recs: Langtry wants to see the foreign buyers ban lifted entirely. "It’s not helping. Housing hasn’t become more affordable."

Staunton noted that previously Canadians had been buying properties in the US, giving them options should they want to access new real estate options. But now with "the exchange rate and uncertainty of the US and Canadian government, no one is doing that either."

As housing affordability remains elusive, experts are calling for policy changes to support both domestic and foreign buyers. Langtry concluded, "We need affordable housing, bigger housing for families, and more government subsidies for developers to make it worth their while."