Foreign homebuyer activity in the U.S. surged over the past year, marking the first significant rebound since 2017. While some would-be U.S. homebuyers are feeling uncertain about high interest rates and broader economic changes, foreign buyers are increasingly eager to get a slice of the country’s housing market.
Foreign homebuyers bought more than 78,000 homes between April 2024 and March 2025, according to a study from the National Association of Realtors, a 44% increase from the previous year. This is the first time in eight years that the number of foreign-buyer home purchases has increased year-on-year, snapping what had been a steady decline in foreign purchases since 2017.
Foreign homebuyer activity resulted in the purchase of $56 billion worth of homes last year, the report found, a 33% increase from the year before. However, that number is down more than 63% since 2017.
“International interest in buying U.S. real estate increased following the global economic recovery from several years of pandemic-related disruptions,” said Lawrence Yun, chief economist at NAR. “However, elevated home prices and interest rates continue to dampen overall potential sales activity and remain well below pre-pandemic levels.”
Here’s a breakdown of the trends from April 2024 to March 2025:
Where is the Foreign Homebuyer Activity Taking Place?
Sunshine and warm weather proved to be a popular draw for foreign buyers. Florida was the most popular destination, with more than a fifth of buyers purchasing a home there. California and Texas were the next most popular destinations, with New York and Arizona rounding out the top five.
California, which has the largest Chinese-American population in the country, was the most popular state for Chinese buyers. Canadians were most keen to buy in Florida, reflecting a longstanding interest from Canadian “snowbirds” who pick up a winter vacation home in the Sunshine State or move there for retirement. Canadians consistently rank among the top foreign buyers of Florida real estate, accounting for a significant share of purchases in cities like Fort Lauderdale, Naples, and Sarasota.
Where are the Buyers Coming From?
China and Canada were the two biggest sources of foreign purchases, with 29% of buyers coming from either of these countries. Eight percent of buyers came from Mexico. India accounted for 6% of the foreign homebuyers and the UK rounded out the top 5 with 4%. Brazil, Nigeria, Columbia, the United Arab Emirates and Israel rounded out the top 10.
Purchases increased among all the top five except in India. With the increase in purchases, China remains the largest foreign buyer in terms of the dollar volume of homes purchased. Chinese buyers purchased $13.7 Billion of existing homes, up significantly from the $7.6 Billion in the prior period, remaining the largest foreign buyer due to the average purchase price of $1.2 Million.
What are Foreign Homebuyers Choosing?
More single family or townhomes are purchased than condos. 77% of foreign homebuyers purchased single family or townhomes rather than condos, compared with 90% of all homebuyers. More foreign homebuyers purchased a property as a vacation home or rental or both (47%) compared to all buyers (16%.)
Although the foreign buyers purchase in central cities more often (40%) than domestic buyers, foreign buyers most often purchase properties in suburban areas. Suburban homes were equally popular with foreign homebuyers and the overall market (44% for foreign buyers and 45% for the overall market.) Nearly 60% of Asian Indian buyers purchased a property in a suburban area, which correlates with data showing that 2/3rds of these buyers purchased a property for use as their primary residence. In contrast, Canadian buyers were the most likely to purchase a property in a resort area, with nearly half purchasing a vacation home property.
47% of foreign buyers paid cash versus 28% of the general homebuying population. The median home price was $494,400 for foreign buyers versus $408,500 for all existing home purchases. These foreign home buyers purchased 78,100 homes, 1.9% of the overall number of homes purchased (4.04 million from April 2024-March 2025.)