A year of economic uncertainty and a weak Canadian dollar has some snowbirds reevaluating their travel plans and considering selling their vacation properties.
It’s something Mike Dunlop of Ottawa is mulling over. He and his wife have owned a condo in Cape Canaveral for more than a decade.
When they purchased the property, the loonie was on par with the U.S. dollar, but in the years that followed, that has changed. The Canadian dollar is now sitting at less than 70 cents U.S.
“The cost just in Canadian dollars has gone up over 30 per cent and then property tax has gone up, insurance has gone up, etc. So, it’s probably at least 50 to 60 per cent more expensive right now than it was on the day we bought it,” he said.
“If you’re only a snowbird and go down for three months, you’re still paying 12 months of expenses for three months. So, those three months are getting quite expensive.”
Dunlop is far from the only Canadian who flocks to the Sunshine State when the mercury drops up north.
“Hard data on this is hard to find, but some of the estimates I have read show that as much as a third of new listings that come from foreign owners in Florida come from Canadian owners. So, they have a big impact on the market,” said Nick Gerli, founder and CEO of Reventure App, which analyzes real estate prices and trends.
Gerli notes some real estate markets in Florida, such as Sarasota, are disproportionately impacted by Canadian buyers.
“That’s a market that a lot of Canadians have flocked to over the last five to ten years as a winter getaway or an investment area, and in Sarasota, that’s one of the worst-hit markets. Prices are down five per cent year-over-year across both homes and condos. They’re down even more for just condos,” he said.
“Plus, the inventory is spiking. I think we’re already seeing this trend of Canadian owners selling and fewer buying having an impact on some of these regional housing markets with the prices dropping.”
Other issues impacting the pocketbooks of snowbirds with a vacation home in Florida include increasing property taxes and insurance costs.
Last fall, hurricanes Helene and Milton ripped through Florida, leaving behind US$40 billion in insured losses.
That total made up 63 per cent of all insured losses caused by severe storms worldwide in 2024, according to a report from reinsurance broker Gallagher Re.
Homeowners association (HOA) fees are also climbing across the state.
“Especially on condos, we’re seeing a big increase on HOA costs, and in some cases, among HOAs, those numbers are doubling in a matter of two to three years as well and that’s basically taking some owners monthly payments to $2,500 a month, to $5,000 a month,” said Gerli.
“That, of course, is a huge increase that some people are not able to afford and thus, they are starting to sell. A weaker Canadian dollar obviously makes it more expensive to buy into U.S. denominated real estate so, I am sure that is driving some of the reduction in demand as well.”
Florida’s real estate market saw a significant uptick between 2020 and 2024, with the median sale price jumping from US$245,879 in Jan. 2020 to US$391,411 in Jan. 2024 according to the Zillow Home Values Index.
“At Reventure App, we have Florida’s housing market pegged at about 24 per cent overvalued compared to its long-term norms related to income and rent,” said Gerli.
“Our baseline at Reventure App for Florida is a four to five per cent correction across the state for 2025, but that’s a correction that could last multiple years, given how overvalued prices became during the pandemic.”
Regardless of where Florida’s real estate market goes from here, Dunlop says he feels blessed to be able to have a second home in the Sunshine State.
“We are lucky enough to have had it for many years, so I’m not sitting here complaining or whining,” he said.
“It’s just a fact of life that as the Canadian dollar has declined for many reasons, it makes spending money in the United States more expensive.”
