Foreign investors are back in force, snapping up American homes in record numbers. From April 2024 to March 2025, international buyers purchased $56 billion worth of existing U.S. homes, according to a new report from the National Association of Realtors (NAR). That marks a 33 percent increase from the previous year and the first significant rebound since 2017.
But while this wave of foreign money may boost some markets, it’s also raising concerns about housing affordability and the growing pressure on American homebuyers.
The data comes from NAR’s annual International Transactions in U.S. Residential Real Estate report, which surveyed thousands of real estate professionals about deals involving international clients. Foreign buyers purchased 78,100 properties during the 12-month period, up 44 percent from the year before. The median price of those homes was a record-setting $494,400.
To put it in perspective, total U.S. residential home sales—both existing and new—topped approximately $2.4 trillion in the past year. That means foreign buyers made up a little over 2 percent of the market by dollar volume. However, their influence is larger than the numbers suggest because they tend to pay cash and target high-end properties in key markets.
Where the Money Is Going
Five states accounted for the vast majority of international purchases:
- Florida: 21%
- California: 15%
- Texas: 10%
- New York: 7%
- Arizona: 5%
Florida remains the top destination for international buyers for the 15th year running. NAR’s chief economist Lawrence Yun pointed to an increase in housing inventory there, as well as continued demand for vacation and investment properties.
China led the pack among foreign buyer nations, responsible for 15 percent of all international purchases (11,700 homes totaling $13.7 billion). Canada came in second at 14 percent, followed by Mexico, India, and the United Kingdom.
Why the U.S. Remains a Magnet
Several factors make U.S. real estate attractive to foreign investors:
- Strong property rights
- Stable legal system
- Desirable lifestyle and climate in key markets
- Relative safety during global unrest
- A weak dollar in some countries enhances buying power
Many foreign buyers see American homes as both a secure investment and a place to live part-time or permanently. In fact, 56 percent of international purchases were made by foreign nationals already living in the U.S. on visas or as recent immigrants.
Are Foreign Buyers Fueling Housing Inflation?
While international buyers make up a small portion of total transactions, their behavior amplifies price pressures in certain areas—especially when they pay cash and target luxury or vacation markets. NAR reports that 47 percent of foreign buyers paid in cash, compared to just 28 percent of all buyers nationally.
This has real implications. In areas like Miami, Phoenix, and parts of California, the influx of overseas cash can outbid local families struggling with 6–7 percent mortgage rates and stagnant wages. The average sale price of a home in the U.S. reached $503,800 in Q1 2025, up from $417,400 in early 2021. High interest rates and foreign investment are combining to squeeze first-time buyers out of the market.
Changing Tides for Some Countries
Not all countries are increasing their presence. Canadian interest, for instance, has dropped sharply amid political tensions and tariffs imposed by the Trump administration. Redfin reports a 26 percent decline in U.S. home searches from Canada in May 2025 compared to the previous year.
“There’s been a real pullback,” said Heather Mahmood-Corley, a Redfin agent in Phoenix. “Usually I have a handful of Canadian buyers every spring—this year, none.”
Weakened Canadian currency and fears over U.S.-Canada relations are contributing to that retreat.
A Mixed Blessing
Foreign investment in U.S. housing is a double-edged sword. It brings in capital, supports property values, and bolsters local economies—but it also adds to competition and drives prices higher in markets already struggling with affordability.
As the U.S. housing market faces ongoing challenges from rising costs and tight supply, the role of international buyers is likely to remain a key—and controversial—part of the story.
Whether that role grows or shrinks in the coming year may depend as much on geopolitics as on interest rates.
FAM Editor: Housing is unaffordable to younger home buyers. We either need to build more quality homes or kick out the foreign investors who are not living in the houses they buy. I would almost say that a national law loosening local zoning ordinances for building homes would be a good thing.
