Portfolio manager says the media may be missing the bigger picture in the snowbird property selloff
For decades, Canadian snowbirds have split their time between Canada and U.S. retirement hotspots like Florida and Arizona. However, with geopolitical tensions approaching fever pitch thanks to White House tariff policy, that seems to be changing.
A recent article from Reuters found that many Canadian snowbirds plan to sell homes in Arizona and Florida due to the strained relations between the two countries.
However, Gerry Scott, a portfolio manager specializing in cross-border wealth management, says there’s much more behind the trend.
Scott is a snowbird himself, spending his time between Vancouver and Maui, and hosts the Snowbird US Expats podcast. Although he notes some snowbirds may be leaving the U.S. due to the political tensions, it's not to the level portrayed and that “the media is blowing” it out of proportion. Instead, he says other factors such as age and expenses might be the real drivers.
In places like Maui, for example, property taxes and insurance have surged following the Lahaina wildfires. That has led to some selling homes and looking at rental options when planning to visit.
Florida, a popular destination for snowbirds and international travelers, has seen a notable rise in homeowner insurance costs. According to Yahoo News, owners of single-family homes in Florida experienced a 0.3 per cent increase in the fourth quarter of 2024 and into 2025, while condo units saw a rise of 0.8 per cent.
Combined with the weakening of the Canadian dollar against the U.S. dollar, many Canadian snowbirds have found it too expensive to maintain their properties, according to the Wall Street Journal.
“They're hitting the age now, if they're in their mid-70s, and if the children don't want those places [or] want to bear the cost of those places, I think you're seeing it's being driven by demographics - the age of these people that own the places,” he says.
Canadian snowbirds, he says, have always been strategic. “When they buy their US dollars... they just don't go [buying] $100,000. They'll buy $10,000, $25,000, whatever the case is. They'll pick their spots, which they believe is a pretty good rate to buy into,” Scott adds.
For advisors, Scott says the biggest risk isn’t market volatility, it’s compliance. “Most advisors are just as confused as clients when it comes to cross-border rules,” he adds.
“You've got the IRS tax concern... you've got immigration issues. There's always confusion between 183 days over three years and then six months being 182 days. I think financial advisors are just as confused when it comes to the rules,” Scott adds.
It’s a different story for American snowbirds, especially those who hold dual citizenship and move north to Canada. That's where he sees the biggest errors, especially around U.S. citizens holding Canadian investments.
He highlights a major issue with U.S. clients in Canada: confusion around PFIC rules and cross-border investments.
“These financial advisors are making so many mistakes because there [are] so many rules that these Americans have to be careful with. They can't own Canadian mutual funds in non-registered investments because of Passive Foreign Investment Company rules. And I think a lot of Canadian advisors will tell these people, ‘Don't worry, we'll file the Qualified Electing Funds [returns], and you can fill out the 8621 [form], and don't worry, you'll be fine’, but there's a huge cost.”
Scott’s main message to advisors during this busy time is to educate themselves on the current climate, new laws, and tax regulations. “These financial advisors that are just licensed in Canada and they want to learn more about this, we're connecting those professionals with other professionals that they can deal with, and they can learn from,” he adds.
