After rebounding last year for the first time since 2017, foreign purchases of U.S. homes lost momentum over the last year, reflecting a broader housing market slowed by high home prices, limited inventory and elevated borrowing costs.
International buyers purchased $45.3 billion worth of U.S. existing homes between April 2025 through March 2026, a nearly 20% drop in dollar volume and 14% decline in the number of homes purchased compared to the previous year, according to the National Association of REALTORS®’ newly released 2026 International Transactions in U.S. Residential Real Estate report.
About 67,000 properties were purchased by foreign buyers over the last year, marking the second-lowest level since NAR began tracking such data in 2009.
“The decline in foreign home buyer activity mirrors the decline in international visitors and tourists to the United States,” says Lawrence Yun, NAR’s chief economist. “Even a slightly weaker U.S. dollar over the past year, which provides more purchasing power for foreigners, did not induce more activity.”
Beyond housing affordability challenges, the report also points to geopolitical uncertainty, trade policies and inflation that has weighed on international demand and prompting some overseas buyers to adopt a “wait-and-see” approach to investing in U.S. real estate.
Real estate professionals surveyed by NAR said the biggest barriers for international clients who ultimately did not buy over the last year were:
- 33% couldn’t find a suitable property to purchase
- 28% cited home prices
- 19% pointed to immigration laws
Still, the U.S. continues to attract foreign buyers because many metro areas remain relatively affordable compared to major global cities and offers long-term investment opportunities despite higher home prices, the report notes.
Top U.S. Destinations for Foreign Buyers
Coastal states continue to dominate international demand. Florida remained the top destination, attracting 20% of all foreign buyers, particularly those from Canada and Latin America. “Florida, with its beaches and favorable winter climate, continues to be the top state to draw foreign buyers,” Yun notes.
California ranked second, drawing many buyers from Asia and Latin America.
The following were the top U.S. destinations of foreign buyers over the last year:
- Florida: 20%
- California: 19%
- Texas: 12%
- New Jersey: 4%
- Georgia: 4%
Who’s Targeting U.S. Real Estate?
Canada and Mexico—countries that border the U.S.—comprised the largest amount of foreign buyers, with both countries increasing their share of U.S. purchases over the past year. Meanwhile, the share of buyers from China declined to 11%, down from 15% a year earlier. Still, Chinese buyers continue to spend the most, with an average home purchase price of $1 million.
Overall, international buyers tend to purchase higher-priced homes. The median purchase price for foreign buyers reached $465,000—higher than the median price of $413,600 for all U.S. existing homes sold. Fifteen percent of foreign buyers purchased properties priced above $1 million.
Roughly half also purchased the property as a vacation home, rental investment or both, which far exceeds the 17% of all existing-home buyers who purchased for those purposes.
Here’s a snapshot of the top foreign buyers in the U.S. from the past year.
Canada
- Percentage share of foreign purchases in U.S.: 16%
- Dollar volume of existing homes purchased: $5.2 billion
- Top destinations in U.S. for purchases: Florida, California and Arizona
Mexico
- Percentage share of foreign purchases in U.S.: 14%
- Dollar volume of existing homes purchased: $5 billion
- Top destinations in U.S. for purchases: California, Texas and Florida
China
- Percentage share of foreign purchases in U.S.: 11%
- Dollar volume of existing homes purchased: $7.6 billion
- Top destinations in U.S. for purchases: California, Texas and Arizona
India
- Percentage share of foreign purchases in U.S.: 9%
- Dollar volume of existing homes purchased: $3.7 billion
- Top destinations in U.S. for purchases: Washington, Texas and New Jersey
United Kingdom
- Percentage share of foreign purchases in U.S.: 4%
- Dollar volume of existing homes purchased: $1.2 billion
- Top destinations in U.S. for purchases: California, Arizona and Michigan
