New data from the National Association of Realtors (NAR) shows that foreign investment in U.S. residential real estate surged to $56 billion between April 2024 and March 2025—the strongest level since 2017. This marks a 33% increase in total dollar volume and a 44% increase in the number of properties purchased, signaling renewed global interest in American housing.
According to the NAR’s 2025 International Transactions in U.S. Residential Real Estate report, foreign buyers purchased 78,100 existing homes, compared to approximately 54,300 homes in the prior year. This is the first year-over-year rise in foreign purchases since 2017. The resurgence follows a downward trend during the pandemic years, when uncertainty and travel restrictions dampened international demand.
The median purchase price paid by foreign buyers reached a record $494,400, up from $475,000—a 4.1% increase year-over-year. Notably, 47% of these transactions were all-cash, compared to just 28% across all buyers. This reflects both foreign investors’ substantial cash reserves and their relative insulation from rising U.S. mortgage rates.
Foreign investment is concentrated in select U.S. states. Florida topped the list at 21% of all foreign home purchases, extending its lead for at least 15 years. California accounted for 15%, Texas 10%, New York 7%, and Arizona 5%.
International buyers predominantly come from a few key nations. Chinese buyers led with 15% of foreign purchases—spending approximately $13.7 billion—while Canadian purchasers made up 14%, Mexican 8%, Indian 6%, and UK-based buyers 4%.
The NAR report also distinguishes between buyers residing abroad versus those already in the U.S. About 56% of foreign purchases were made by recent immigrants or visa holders, who acquired 43,700 homes totaling $26.9 billion. International buyers living abroad made up the remaining 44%, purchasing 34,400 properties worth $29.1 billion. This diverse mix of investors—from those seeking permanent residence to external investors citing market stability and legal protections—highlights the varied motivations behind these transactions.
Industry analysts attribute the rebound to several converging factors. As global travel resumed and economies stabilized after the pandemic, international buyers returned in force. A softer U.S. dollar increased purchasing power for buyers using other currencies, while the United States continues to be viewed as a stable and legally protected real estate destination.
Despite the uptick, total foreign buying remains below the peak levels of 2017. That year saw foreign buyers purchase approximately 284,500 homes—nearly four times this year’s count.
Although foreign capital injects billions into U.S. real estate markets, it raises concerns about affordability—particularly in markets already facing housing shortages and escalating prices. Critics warn that cash-rich international buyers may outbid local first-time and middle-class homebuyers, exacerbating existing disparities. Some local buyers are increasingly priced out due to competition fueled by global investors.
For U.S. homeowners and sellers, international interest often leads to quicker sales and higher price offers. However, for communities where residents struggle to keep pace with property values, it can widen the affordability gap, particularly in coastal and Sun Belt cities where inventory is tight.
Several factors will determine whether this surge continues. The NAR data covers activity before the introduction of new tariffs in April 2025. Early reports suggest rising trade tension—especially with Canada—could dampen future investment. Rising global interest rates may impact investor appetite, while constrained housing supply keeps demand and prices buoyant. Diplomatic relations and financial policy changes abroad could also either attract or dissuade future foreign investment.
Analysts suggest that while current volume remains below historical highs, the recent rebound may mark the beginning of a restored trend. Continued disruptions in global economic conditions, coupled with U.S. housing fundamentals—like strong rule of law and stable returns—could sustain this investor behavior.
Foreign investment in U.S. housing has rebounded sharply, reaching $56 billion in annual purchases—the strongest figure since 2017. This resurgence is fueled by post-pandemic economic recovery, cash-heavy foreign buyers seeking stable assets, and favorable currency dynamics. While the surge benefits sellers and adds liquidity, it also raises concerns about affordability, especially in high-demand markets. The trajectory ahead will depend on global economic stability, evolving trade policy, and domestic housing market strategies aimed at balancing foreign interest with local affordability needs.