Introduction
For decades, Canadian snowbirds—those who head south during the harsh winter months—have flocked to Florida. The sunny skies, warm beaches, and tax-friendly policies made it the ideal second home destination. But in recent years, an interesting shift is taking place: Canadian snowbirds are selling their Florida homes.
What was once a dream winter escape is now, for many, a complicated and costly burden. From rising property insurance to fluctuating currency values, a variety of factors are pushing many Canadians to rethink their U.S. property investments.
In this article, we explore why Canadian snowbirds are selling their Florida properties, how this is affecting the real estate landscape, and what alternatives snowbirds are considering for their winter retreats.
Who Are Canadian Snowbirds?
Before diving into the reasons behind this trend, let’s briefly define who snowbirds are.
What is a Snowbird?
A snowbird is typically a retiree or older adult who lives in Canada during the warmer months and relocates to warmer U.S. states—especially Florida—during the winter.
Florida has been a favorite for Canadian snowbirds for decades, thanks to:
- Its mild winters
- Zero state income tax
- A large, welcoming retiree community
- And easy access via direct flights from major Canadian cities
But despite these perks, a growing number of snowbirds are packing up their Florida homes—and listing them for sale.
Top Reasons Why Canadian Snowbirds Are Selling Florida Homes
1. Soaring Property Insurance Rates
One of the most cited reasons for selling? Sky-high insurance premiums.
In recent years, Florida has seen a dramatic increase in property insurance rates. Factors such as increased hurricane risk, fraudulent claims, and insurer insolvency have pushed insurance costs through the roof.
In some cases, homeowners report their annual insurance premiums tripling or even quadrupling, making it unsustainable to hold on to a second property.
Example:
A Canadian couple who previously paid $4,000 per year in insurance now face bills upward of $12,000–$15,000. For seasonal residents, this added cost doesn’t make sense anymore.
2. Canadian Dollar vs. U.S. Dollar Exchange Rates
Another key factor: the exchange rate.
As of 2025, the Canadian dollar is trading around $0.72 USD, making everything from mortgage payments to daily groceries more expensive for Canadians living in Florida.
For those on fixed retirement incomes or pensions, the unfavorable exchange rate is squeezing budgets and making U.S. property ownership much less appealing.
3. Changing Travel Habits Post-Pandemic
The COVID-19 pandemic shifted how people travel. Many snowbirds were forced to stay in Canada during lockdowns and border restrictions, and some never returned to their Florida homes.
This led to a realization: “Maybe I don’t need a second home to enjoy the winter sun.”
Post-pandemic, more Canadians are opting for shorter vacation rentals rather than maintaining a full-time winter property.
4. Florida’s Increasing Cost of Living
Florida is no longer the “cheap” destination it once was. Real estate prices have surged, and so have the costs of:
- Homeowners Association (HOA) fees
- Utility bills
- Maintenance and landscaping
- Property management (especially if unoccupied for months)
This added financial pressure is turning many Canadian homeowners into motivated sellers.
5. Political and Economic Uncertainty in the U.S.
With elections looming, shifting immigration policies, and rising tensions on international trade, many Canadians feel uneasy about owning property in the U.S.
Some also worry about tax implications and possible visa restrictions for long-term stays. While these haven’t been fully enacted, the mere possibility is enough for some to cash out while the market is still strong.
How Are Canadian Snowbirds Selling Their Homes?
Selling U.S. property as a foreign national involves specific tax rules and regulations—most notably, the Foreign Investment in Real Property Tax Act (FIRPTA).
What Is FIRPTA?
Under FIRPTA, the U.S. government withholds 15% of the gross sale price of the property, not just the gain. However, sellers can often recover some or all of this by filing the appropriate tax forms after the sale.
Important Tips for Canadian Sellers:
- Hire a real estate agent experienced in working with Canadian owners.
- Consult with a cross-border tax expert to handle FIRPTA correctly.
- Prepare to wait several months for tax refunds to be processed.
- Consider 1031 Exchange options if reinvesting in U.S. real estate.
Impact on the Florida Real Estate Market
The wave of Canadian-owned homes hitting the market is starting to affect real estate trends in Florida.
Signs of Market Shift
- Increased listings in popular snowbird regions like Sarasota, Naples, and Fort Lauderdale
- Longer average time on market for mid-range properties
- More competitive pricing and softening in seasonal home prices
While Florida real estate remains strong, this trend may slightly cool the market in snowbird-heavy communities.
Where Are Canadian Snowbirds Going Now?
Even as they leave Florida, most Canadian snowbirds aren’t giving up their winter escapes—they’re just getting smarter about it.
1. Renting Instead of Owning
A growing number of snowbirds now rent winter homes instead of buying. This gives them flexibility without the maintenance costs and taxes.
2. Exploring New Destinations
Other warm-weather destinations gaining popularity include:
- Mexico – More affordable real estate and living costs, with coastal and colonial charm
- Portugal – A rising star for retiree relocation
- Costa Rica – Known for its peaceful vibe and natural beauty
- Southern British Columbia – For those preferring to stay within Canada
Pros and Cons of Selling a Florida Home
Let’s break it down:
✅ Pros
- Avoid high property taxes and insurance
- No maintenance responsibilities
- Profit from years of real estate appreciation
- Eliminate FIRPTA worries
- Freedom to travel elsewhere
❌ Cons
- Loss of a familiar winter home
- May pay capital gains tax
- Exchange rate losses when repatriating U.S. funds
- Emotional attachment to the property
Frequently Asked Questions (FAQs)
Do Canadians pay tax when selling a Florida home?
Yes. Under FIRPTA, 15% of the sale price is withheld, but much of this can be reclaimed if proper paperwork is filed. Always consult a tax professional.
Can a Canadian own property in Florida?
Absolutely. There are no restrictions on foreign ownership in Florida, but tax and estate planning should be done carefully.
Is now a good time to sell?
If your property has appreciated and the cost of ownership has become a burden, this may be a strategic time to sell while the market remains relatively strong.
Final Thoughts: Is It Time to Sell?
The growing trend of Canadian snowbirds selling their Florida homes is a sign of changing times. What was once an affordable slice of paradise is now, for many, a financial and logistical challenge.
Whether it’s because of rising costs, currency shifts, or personal preference, more and more Canadians are saying goodbye to Florida property ownership.
Still, every situation is different. If you’re a Canadian snowbird considering selling, be sure to consult with professionals on both sides of the border. The right advice can save you thousands—and ensure a smooth, stress-free transaction.