Despite a contentious political climate, the U.S. remains a popular destination for foreign buyers.
Foreign buyers bought $56 billion worth of U.S. existing homes from April 2024 through March 2025, according to the National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report.
And after years of declines, international home transactions have risen year-over-year, from 54,300 to 78,100. It's still a huge drop from 2017, when foreigners bought 284,500 homes.
But it is a reversal of a consistently downward trend that started that same year.
"Foreign investor activity eased as global uncertainty around the pandemic, and inventory shortages made the U.S. market less attractive," says Realtor.com® senior economic analyst Hannah Jones. "Over the last year, however, the U.S. dollar has softened, inventory has picked up, and buyers have pulled back, creating opportunities for foreign investors, especially those paying in all-cash."
"U.S. real estate remains a safe haven for global wealth," agrees Nick Malinosky of Douglas Elliman in Florida. "Compared to many countries where property rights can be murky or taxed aggressively, the U.S. is still seen as one of the most secure places to place capital in real assets."
Where are foreigners buying?
He notes that the Sunshine State—still No. 1 with foreign buyers despite its issues with extreme weather and soaring insurance costs—remains a safe long-term investment.
"Even with currency fluctuations and shifting geopolitics, the combination of strong property rights, no state income tax, and a historically resilient luxury market make this region a very attractive long-term investment," he says.
New York (No. 4 on the list) has been stealthily rising in popularity with foreign buyers, almost doubling its share of international buyers in one year.
"The foreign buyer has quietly reemerged in Manhattan this year," says Michelle Griffith of Douglas Elliman's New York office. "We’re seeing interest from European, Middle Eastern, and Asian buyers who are drawn to new developments, pied-à-terres, and iconic properties in neighborhoods like Tribeca, Central Park South, and the West Village. They’re incredibly selective but they’re very much here."
Broker Jennifer Roberts of Coldwell Banker Warburg notes that the city's many top schools are a perennial draw for the foreign buyer, as is being the home-base for multiple industries: "Buying a home in New York City is considered a strategic move to strengthen professional ties," she says.
Agent Robert Elson of the same agency notes that the falling U.S. dollar is goosing purchases: "Foreigners can now get a bigger bang for the buck in the U.S.," he says.
Arizona (No. 5 on the list) remains one of the more in-demand states with foreign buyers, though its popularity is waning, losing more than half its share of foreign buyers since 2010.
"Arizona has more limited foreign investment, but it’s a prime target due to the relative affordability of residential housing and the sharp population increase," Phoenix-based investor Cory Pinter of Inherited House Guide tells Realtor.com.
He notes that given the current bumpy relations between the U.S. and its northern neighbor, the Canadians who make up much of Arizona's buyers may decide to shop elsewhere.
Who is the foreign buyer?
The term "foreign buyers" includes non-U.S. citizens with permanent residences outside the U.S., and non-U.S. citizens who are recent immigrants (less than two years at the time of the transaction) or non-immigrant visa holders who reside for more than six months in the U.S. for professional, educational, or other reasons.
International buyers are a small (1.9% of 4.04 million existing-home sales) niche market but considered vital, especially to certain areas. The most popular origin countries are: China (15%), Canada (14%), Mexico (8%), India (6%), and the United Kingdom (4%).
China's share has gone up significantly since 2007, when only 9% of foreign buyers were from that country. Mexico has dropped from 13%, and the U.K. has plummeted from 12%.
In 2008, Canadian buyers made up a hefty 24% share but are now only 14%.
It's safe to say that foreign buyers prefer all-cash transactions: 47% versus only 28% for the average buyer.
They also tend to buy more expensive homes, with a median home price tag of $494,400 versus $408,500 for all homes sold.
They, like most buyers, tend to purchase in suburban areas, and are most likely snapping up either a vacation home and/or investment property rather than a primary home (47% versus only 16% for all buyers).
Here are the top states for foreign homebuyers:
Florida
Share of foreign buyers: 21%
Since 2010, the proportion of foreign buyers in the Sunshine State has remained relatively stable, peaking in 2011 with 31%.
"Foreign buyers are attracted to states with warm weather, no state income tax in some cases, and good shopping, dining and other amenities like beaches, mountains, and hiking trails," says agent Cara Ameer, who is licensed in both Florida and California. "Additionally, they like Florida because it has Disney World and Epcot."
California
Share of foreign buyers: 15%
Despite wildfires, California remains a popular state for foreign buyers, with a share that has remained stable since 2010.
Texas
Share of foreign buyers: 10%
The Lone Star State has become increasingly popular with international buyers, rising from 8% 15 years ago. But it has seen a small downward slide in the last couple of years.
New York
Share of foreign buyers: 7%
The Empire State has remained stable with foreign buyers, even almost doubling from 2024 when the share was only 4%.
Arizona
Share of foreign buyers: 5%
Known for its dry climate and favorable taxes for retirees, Arizona has seen a steady decline in the share of foreign buyers, from 11% 15 years ago. Investor Cory Pinter posits that some of this is due to disgruntled Canadians taking their investments elsewhere.
Hawaii
Share of foreign buyers: 3%
Despite sometimes dipping down to 0%, the Aloha State's share of foreign buyers has remained small but steady over the last 15 years.
North Carolina
Share of foreign buyers: 3%
Like Hawaii, North Carolina's share of foreign buyers is small, but has remained consistent over the last 15 years.
Michigan
Share of foreign buyers: 3%
Michigan too has not seen any significant drop in its small but consistent proportion of foreign buyers.
New Jersey
Share of foreign buyers: 3%
New Jersey's share of foreign buyers has ranged from 1% to 4% over the last 15 years, not gaining as much as its neighbor New York.
Illinois
Share of foreign buyers: 3%
This state has seen a small but steady increase in foreign buyers: from only 1% 15 years ago to holding steady at 3% to 4% starting in 2011.
-Kiri Blakely, Realtor.com July 15, 2025
