Foreign Buyers Spend $45.3B on US Homes Amid Spending Decline

Foreign buyers invested $45.3 billion in U.S. residential real estate between April 2025 and March 2026, purchasing 67,100 existing homes nationwide. This figure represents a 14% decrease in dollar value compared to the preceding 12-month period, indicating a pullback in international spending within the U.S. housing market. Despite the overall decline, five states continue to attract significant interest from foreign purchasers: Florida, California, Texas, New Jersey, and Georgia. The National Association of Realtors (NAR) released these findings in its 2025 International Transactions in U.S. Residential Real Estate report. A notable trend among these international buyers is their propensity for all-cash purchases, with 47% of foreign buyers paying in full, significantly higher than the 28% rate among all U.S. existing home buyers. Of the total foreign buyer activity, 56% involved individuals residing within the U.S., including recent immigrants and visa holders who acquired 37,600 homes valued at $21.8 billion. Conversely, foreign buyers living abroad accounted for 29,500 home purchases totaling $23.5 billion. The report attributes the lower overall spending partly to international currencies gaining strength against the U.S. dollar, which typically enhances purchasing power for foreign investors. However, NAR Chief Economist Lawrence Yun noted that even a slightly weaker dollar did not stimulate increased activity, suggesting other factors are at play. He stated, "The decline in foreign home buyer activity mirrors the decline in international visitors and tourists to the United States." California's wealth tax was cited as a factor that may have opened opportunities for international buyers, while the World Cup brought visitors, though soaring fuel costs may have impacted travel. Canada emerged as the leading source of foreign capital, representing 16% of all international buyers and accounting for 10,700 homes and $5.2 billion in volume. Mexico followed, with buyers from that country making up 14% of transactions. China, historically a major player, dropped to third place at 11% of buyers, though Chinese buyers tend to invest in higher-value properties, with an average purchase price of $1 million. The data underscores a complex interplay of economic conditions, currency fluctuations, and global events influencing international real estate investment in the United States.