While some would-be U.S. homebuyers are
Foreign buyers bought more than 78,000 homes between April 2024 and March 2025, according to a study from the National Association of Realtors, a 44% increase from the previous year. This is the first time in eight years that the number of foreign-buyer home purchases has increased year-on-year, snapping what had been a steady decline in foreign purchases since 2017.
Foreign clients bought $56 billion worth of homes last year, the report found, a 33% increase from the year before. That number is down more than 63% since 2017, though.
"International interest in buying U.S. real estate increased following the global economic recovery from several years of pandemic-related disruptions," said Lawrence Yun, chief economist at NAR. "However, elevated home prices and interest rates continue to dampen overall potential sales activity and remain well below pre-pandemic levels."
Who is buying where?
China and Canada were the two biggest sources of foreign purchases, with 29% of buyers coming from either of these countries. Eight percent of buyers came from Mexico.
Sunshine and warm weather proved to be a popular draw for foreign buyers. Florida was the most popular destination, with more than a fifth of buyers purchasing a home there. California and Texas were the next most popular destinations, with New York and Arizona rounding out the top five.
California, which has the largest Chinese-American population in the country, was the most popular state for Chinese buyers. Canadians were most keen to buy in Florida, reflecting a longstanding interest from Canadian "snowbirds" who pick up a winter vacation home in the Sunshine State or move there for retirement.
How are they buying?
Foreign homebuyers paid significantly more for their homes than U.S. buyers, forking over a median price of $494,400 for homes compared with $408,500 paid by Americans. The study pointed to location and property use as reasons for these higher prices.
"The price difference reflects foreign buyers more often purchasing in more central locations and the different types of properties purchased," the report said. While most Americans tend to buy primary residences in the suburbs, many international buyers buy in central cities or inner suburbs for use as rentals or vacation properties.
Foreign buyers were also far more likely to pay all-cash for their home, 47% versus 28% of U.S. buyers, a reflection of how many of them see the property as a form of investment rather than a primary home.
"Foreign buyers are drawn to investing in American real estate, in part, by our country's strong protection of private property rights," Yun said.
Why did some clients decide not to buy?
Alongside the increase in buyers was a bump foreign clients who changed their minds. While many struggled to find a property they liked or could afford, there was a noticeable jump in the number of buyers backing out of sales due to issues like financing, immigration laws, condo or maintenance fees, and insurance costs.
Homeowners have faced increasing insurance rates in the last year, with
Meanwhile, a slew of tougher immigration policies may be causing some foreign buyers to reconsider. President Donald Trump's aggressive trade stance has made many Canadian visitors rethink their plans to visit the U.S. And in Texas, a law signed last month is set to prevent citizens from multiple countries – including China – from owning or leasing real estate. A similar law was signed in Florida in 2023 and is currently facing a court challenge.
