Page 14 - Nov-Dec 2022_LB

Where Canadians Are Buying

Internationally

Michelle McNally courtesy REALTOR.ca
W hen Canadians travel, some people might head to the cottage or a hotel, while others take flight to their

second home abroad.
Some Canadians own homes across the globe. While select international homeowners buy property for
investment purposes, most opt for a home in a foreign destination strictly for vacations.
“It’s very clear the primary motivation for Canadians who buy internationally is to have a vacation home,” said Sharon
von Schoenberg, Manager of Global Strategy and Relations with the Canadian Real Estate Association (CREA).
Citing data from the National Association of REALTORS® (NAR) 2022 International Transactions in U.S. Residential Real
Estate report, von Schoenberg explained more than half of Canadians who buy a home in the United States (58%)
use it for a vacation property. This is the highest percentage among foreign buyers from countries like Brazil (15%)
and Mexico (8%). Canadians also buy in the United States for residential rental (11%) and primary residences (16%).
So, where else are Canadians purchasing homes, and what are they looking for? We break down some of the data
showing us where and why Canadians are buying internationally.
CREA’s 2021 international data shows 42% of Canadians sought out a detached single-family home. However, fewer
Canadians purchased detached single-family residences in 2021 compared to the previous year, down 3% from 45%
in 2020. On the other hand, Canadians have been showing a greater interest in condos, with 35% of international
Canadian buyers seeking out a unit in 2021 compared to 30% in 2020 and 2019.
United States, Mexico, and Costa Rica rank as top destinations for international buyers

When buying a second home in another country,
Canadians tend to opt for properties in South and
North America.

According to CREA’s 2021 Profile of International
Activity in Canadian Real Estate report, which is based
on information reported by Canadian REALTORS®
about their clients, 39% of Canadians who purchased
a residence outside of Canada bought a home in the
U.S., a drop from 54% in 2020 and 48% in 2019. Of
those who bought homes in the U.S., most Canadians
purchased in Florida (71%) and Texas (11%), up from
48% and 8% in 2020. Secondary homes in Arizona and
California became less popular for Canadians in 2021,
where 5% and 3% bought last year compared to 18%
and 10% in 2020.
Tying for second place, 12% of Canadians who purchased outside of Canada bought properties in Costa Rica and
Mexico in 2021, up significantly from 4% and 5%, respectively, in 2020. Last year, Canadians also bought properties in
the Dominican Republic (5%), Portugal (5%), and the Bahamas (4%).
On a continental basis, most Canadians purchased a home in the Americas in 2021 (76%), followed by Asia (13%) and
Europe (11%).

14 | REAL ESTATE NOW | LB@LoraleeBurns.com