In the United States, foreign demand for residential real estate has significantly decreased, reflecting broader economic challenges. According to the National Association of Realtors (NAR), foreign buyers acquired 67,100 homes from April 2025 to March 2026, marking a 14 percent decline from the previous year. This downturn is attributed to various factors, including geopolitical uncertainties, trade tensions, and rising property costs, which have led many international buyers to postpone their purchases. Despite a slightly weaker U.S. dollar, which typically enhances purchasing power for foreign investors, the anticipated increase in activity did not materialize.
The financial implications of this decline are notable, as foreign buyers accounted for only 1.7 percent of all home sales during this period, totaling $45.3 billion or 2.0 percent of the overall market. The median price of homes purchased by foreign buyers was $465,000, compared to $413,600 for U.S. residents, indicating that foreign buyers tend to invest in higher-priced properties. Nearly half of these transactions were all-cash deals, a stark contrast to the 28 percent of all-cash transactions in the broader market.
Geographically, Florida emerged as the most popular destination for foreign buyers, representing 20 percent of purchases, followed closely by California at 19 percent and Texas at 12 percent. The data also revealed a shift in the nationalities of buyers, with Canadian and Mexican buyers leading in the number of housing units purchased, while Chinese buyers, despite a drop in overall numbers, spent the most in dollar terms, particularly in California. This trend underscores the ongoing appeal of certain U.S. states for foreign investors, especially those seeking vacation homes or investment properties.
The overall impact of declining foreign buyer activity on the U.S. housing market is expected to be limited, given their small share of total purchases. However, the effects may be more pronounced in states with higher concentrations of foreign buyers, such as Florida, California, and Texas. In these markets, the reduced competition from foreign investors could provide some relief for American buyers, who are grappling with affordability issues and high mortgage rates. As the market adjusts, buyers willing to negotiate may find opportunities for lower prices, particularly in areas with a surplus of sellers.
