Foreign investment in U.S. residential real estate surged to $56 billion between April 2024 and March 2025, marking the strongest level since 2017 and the first year-over-year increase in six years. According to the National Association of Realtors’ 2025 report on international transactions in U.S. residential real estate, foreign buyers acquired approximately 78,100 existing homes—an increase of 44% over the previous year. The total dollar volume rose 33% from $42 billion in the prior period.
Several factors contributed to this sharp rebound. A weaker U.S. dollar improved the purchasing power of foreign buyers, while global economic stability post-pandemic and long-term trust in U.S. property rights also encouraged international interest. Many investors were motivated by the opportunity for stable rental income and the perceived safety of the U.S. real estate market.
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The median purchase price among foreign buyers hit a record high of $494,400, compared to the national median of approximately $408,500 for all existing home sales. Nearly half of these buyers—47%—paid entirely in cash, a significantly higher share than among domestic buyers. This not only illustrates strong capital flows but also reflects an effort by foreign buyers to avoid high mortgage interest rates.
Buyers came from a diverse set of countries. China led with 15% of transactions, amounting to $13.7 billion in purchases. Canada followed with 14% and $6.2 billion, while Mexico accounted for 8% or $4.4 billion. India and the United Kingdom rounded out the top five, with 6% ($2.2 billion) and 4% ($2.0 billion) respectively.
In terms of destinations, Florida remained the most favored state for international real estate purchases, capturing 21% of all foreign transactions. California attracted 15% of buyers, Texas 10%, New York 7%, and Arizona 5%. These gateway and coastal metro areas—especially in the Sun Belt—offered favorable rental returns, relative value, and long-term growth potential.
Foreign buyers were categorized into two groups: resident and non-resident. Resident foreign buyers—such as recent immigrants or those on long-term visas—comprised 56% of all purchases, totaling $26.9 billion and covering 43,700 homes. Non-resident investors, living abroad at the time of purchase, made up 44% of sales, buying 34,400 homes worth $29.1 billion.
The impact of this renewed foreign demand is visible in multifamily housing development and pricing trends. In markets where international activity is high, foreign capital has helped support moderating price growth and encouraged new housing construction. These developments are particularly significant in high-demand urban centers where inventory shortages persist.
While the rise in foreign investment brings fresh capital and supports economic activity, it also reignites concerns about housing affordability. With many investors making all-cash offers and targeting higher-end or strategically located properties, competition has intensified, especially in urban markets already facing affordability challenges for domestic first-time buyers.
Despite the strong recovery, foreign buying activity remains well below its peak in 2017, when international buyers purchased roughly 284,500 homes. Analysts suggest that while the current uptick is notable, it may represent a partial rebound rather than a complete return to pre-pandemic highs. Ongoing challenges such as elevated U.S. mortgage rates, constrained housing inventory, and global political uncertainties—including shifts in Canadian investment due to trade tensions—may limit future gains.
Foreign investment in U.S. housing has reemerged as a significant force in shaping real estate dynamics across key U.S. markets. With continued interest in long-term asset growth and rental yield potential, international buyers are once again asserting their influence, though the trajectory from here remains subject to broader economic and geopolitical trends.