For the first time since 2017, the number of existing U.S. homes purchased by foreign buyers has increased, possibly signaling a turning point for international interest in U.S. real estate, according to the National Association of REALTORS®’ newly released “2025 International Transactions in U.S. Residential Real Estate.” That said, while the number of properties purchased by international buyers surged 44% compared to the previous year, the total remains the second-lowest level since NAR began tracking such data in 2009.
“International interest in buying U.S. real estate increased following the global economic recovery from several years of pandemic-related disruptions,” says Lawrence Yun, NAR’s chief economist. “However, elevated home prices and interest rates continue to dampen overall sales activity.”
The overall U.S. housing market recently experienced its lowest annual sales level in more than 30 years, so the re-emergence of international home buyers may be particularly notable: Total dollar volume from international transactions rose to $56 billion, marking a 33% increase from the prior year.
Despite the runup in prices that U.S. home buyers have experienced over the past several years, foreign buyers are drawn to the U.S. because many metro areas are relatively affordable when compared to global city centers, according to NAR’s report. The report reflects NAR members’ transactions with international clients who purchased and sold U.S. residential property from April 2024 to March 2025.
But affordability isn’t the only factor. “Foreign buyers are drawn to investing in [U.S.] real estate, in part, by our country’s strong protection of private property rights,” Yun adds.
International buyers tend to lean heavily into the upper end of the market and are more likely to use cash to complete their purchases. The median purchase price among international buyers was $494,400—higher than the median price for the overall existing-home buyer purchase of $408,500, according to NAR’s report.
Real estate pros are taking note: 20% of practitioners who are REALTORS® reported working with at least one international client over the past year, up from 15% the prior year. The growth in global buyers—whether they’re purchasing primary residences, investment properties or vacation homes—shows re-engagement internationally with the U.S. housing market, especially in key gateway markets.
Who’s Buying and Where
Asian buyers remain the largest group of international purchasers of U.S. real estate, comprising a 38% market share, according to NAR’s report. China regained its position as the top country of origin among foreign buyers in the U.S., accounting for 15% of international buyer purchases last year (nudging out Canada, the top origin country in the previous year).
Top Foreign Buyers of U.S. Real Estate
- China: 15% of foreign buyers; $13.7 billion
- Canada: 14% of foreign buyers; $6.2 billion
- Mexico: 8% of foreign buyers; $4.4 billion
- India: 6% of foreign buyers; $2.2 billion
- United Kingdom: 4% of foreign buyers; $2 billion
Florida remains the top U.S. destination for foreign buying activity, accounting for 21% of all international purchases, according to NAR’s report. “Boosted by a significant increase in the state’s housing inventory, Florida remained the top destination for foreign home buyers, extending a streak of at least 15 years,” Yun says.
Another area foreign buyers are increasing their purchasing activity: California, which overtook Texas this year as the second-most popular U.S. destination, accounting for 15% of purchases. The report attributes the uptick from Chinese buyers who are increasingly targeting the Golden State.
Top U.S. Destinations for International Buyers
- Florida: 21% of foreign purchases
- California: 15%
- Texas: 10%
- New York: 7%
- Arizona: 5%
5 Trends Among International Buyers
NAR’s report uncovered some of the following trends among international buyers who purchased U.S. real estate over the last year:
- More spending power: Nearly 1 in 5 foreign buyers (18%) purchased properties for more than $1 million, often in central, high-demand areas. Chinese buyers have the highest average purchase price at $1.2 million and continue to target mostly high-cost states, such as California, Maryland, New York and Hawaii. Mexican buyers had the second-highest average purchase price at $705,300.
- More all-cash offers: “To some degree because of stubbornly high mortgage rates, a greater share of international home buyers paid cash,” Yun says. Forty-seven percent of foreign buyers paid all-cash, compared to 28% of all U.S. existing-home buyers.
- Vacation and investment focused: Nearly 50% of international buyers purchased homes for vacation use, rental income or both—significantly higher than the 16% of domestic buyers who did the same. Overall, homes purchased for vacation or rental use have been on the rise over recent years, as homeowners leverage equity gains and take advantage of strong rent growth, the report notes.
- Diverse property preferences: While 63% of international buyers purchased detached single-family homes, they also showed high interest in condos (especially Canadians who sought a vacation home or residential rental) and residential land (especially Mexican buyers).
- Increased cancellations: Nearly 70% of REALTORS® surveyed said they had an international client who backed out or was unable to purchase, the highest share on record, according to NAR’s research. The primary reasons cited were inability to find an available property to purchase, high prices and financing challenges—all challenges shared by the overall housing market lately.
Real Estate Pros Lean Into Global Networks
Of the real estate agents who worked with foreign buyers, 72% said their leads came from personal contacts, referrals and business relationships—while only 15% originated from websites or online listings. Some agents are building their outreach by:
- Tapping into international community networks: NAR maintains formal partnerships with more than 100 real estate associations across more than 75 countries, facilitating business connections and strengthening relationships and professional standards internationally.
- Seeking out training opportunities: For example, the Certified International Property Specialist (CIPS) designation provides targeted education, tools and networking opportunities to expand into a niche within the global real estate market.
