Foreign Buyers Spend Billions Less Than Last Year on U.S. Housing Market

Foreign buyers are pulling back from the U.S. housing market, purchasing significantly fewer homes and spending less compared to a year ago as high prices and tight inventory cool demand.

From April 2025 through March 2026, international buyers closed on 67,100 existing homes nationwide, down 14% year over year, marking the second-lowest transaction level since 2009, according to the National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report.

This cohort of real estate clients invested $45.3 billion in U.S. homes, representing a decline of 19%, or $11 billion, from the previous 12-month period. Despite the shrinking sales volume, international buyers paid higher prices than their domestic counterparts, with the median purchase price registering at $465,000, compared to the national overall median of $413,600.

In this report, "foreign" or "international" buyer refers to both foreign nationals living abroad, and non-U.S. citizens who are recent immigrants (less than two years at the time of the transaction) or visa holders living in the U.S.

"The decline in foreign home buyer activity mirrors the decline in international visitors and tourists to the United States," says NAR Chief Economist Lawrence Yun. "Even a slightly weaker U.S. dollar over the past year, which provides more purchasing power for foreigners, did not induce more activity."

This downward trend aligns with recent U.S. Census Bureau data showing that the U.S. population added just 1.26 million residents through international immigration from July 2024 to July 2025, a period that included the first six months of President Donald Trump's second term in the White House.

Who's buying U.S. homes?

Canada reclaimed its spot as the top country of origin among foreign buyers, accounting for 16% of international transactions. Southern neighbor Mexico followed at 14%, while China—last year's leader—settled for third place with 11%.

India (9%) and the U.K. (4%) were the next largest countries of origin.

Italy, France, Brazil, Argentina, and Spain also made a meaningful mark on the domestic housing market this year.

While China dropped two spots in number of units sold, Yun notes that Chinese nationals spent the most of all groups, totalling $7.6 billion, because they purchased more expensive properties averaging $1 million each.

Still, total spending by Chinese home shoppers fells sharply from $13.7 billion a year earlier.

A breakdown of foreign nationals who bought homes in the U.S. over the past 12 months reveals that more than half (56%) of transactions worth $21.8 billion involved recent immigrants or U.S.-based visa holders. International shoppers living abroad accounted for the remaining 44% of all foreign closings in which $23.5 billion exchanged hands.

Top destinations for global shoppers

Miami is a popular destination among Canadian and Latin American buyers looking for second homes. (RHONA WISE/AFP via Getty Images)

Florida continued to command the highest share of global demand, with 20% of all foreign buyers purchasing in the Sunshine State. Among that group, nearly half (48%) were Canadians and close to a third originated from Latin America.

Ana Bozovic, a Miami-based real estate agent and founder of Analytics Miami and Miami Deal Sheet, tells Realtor.com that Canadian snowbirds' buying activity is recovering after a lull, with the Miami Association of Realtors data showing Miami-Dade foreign buyer volume reaching $3.2 billion in 2025, up from $2.3 billion in 2024.

"That growth came despite real friction, when U.S. tariffs on Canadian goods and cross-border political tension pulled Canadian buying activity back before it recovered," says Bozovic, referring to Trump's aggressive policies targeting foreign trading partners.

The analyst describes the temporary dip followed by recovery in the first half of 2026 as a "cyclical wobble inside a structurally strengthening market."

Florida has much to offer Canadian investors, including no state income tax, a year-round warm climate, direct flight access, and decades of established buyer networks.

"Canadian buyers and tourists have been longtime fans of Florida, and more specifically South Florida," Kevin Rutois, a luxury real estate adviser at Rutois International Realty in Miami, tells Realtor.com. "For big cities like Toronto, it is a short and easy flight to get to the Sunshine State and enjoy the beaches."

According to Rutios, for many Canadians, Florida homeownership has become a generational trend, with kids following in their parents' footsteps into the local market.

"Canadians know what they are getting when they come to Florida, and comfort is a huge factor when buying a second home or investment property," he says.

California maintained its spot as the second most popular market for foreign buyers, with a 19% share, up from 15% the year before. It was a top destination for buyers from China (38%), Mexico (29%), and the United Kingdom (36%).  

Maria Garate-Lavalle, a Douglas Elliman agent based in Del Mar, CA, confirms that Chinese demand in California's Coronado remains elevated, driven by coastal lifestyle preferences and investment opportunities.

California is the second most popular destination among foreign homebuyers, with many Chinese and Mexican shoppers opting to buy there. (Luciano Mortula-LGM/Adobe Stock Images)

"Chinese buyers remain some of the biggest spenders by volume," Garate-Lavalle tells Realtor.com.

On the other hand, Mexican buyers have retreated from the California market over the past year.

"Inflation has played a big role in their decision making when choosing to buy a second home, and alternatives like Madrid [and] Spain have become increasingly popular," explains the agent.

Texas ranked the nation's third-largest destination for foreign buyers, securing 12% of transactions. Forty-five percent of Texas buyers came from Latin America/Caribbean, and 38% from Asia/Oceania. The Lone Star State was the second most common destination among Mexican, Chinese, and Indian investors, according to the NAR report.

New Jersey climbed the rankings to fourth place, attracting 4% of foreign buyers and proving especially popular among Indian nationals. Georgia rounded out the top five most sought-after areas for global shoppers with 4% of overall demand.

Other notable foreign buyer hot spots included Maryland, Washington, Michigan, Arizona, and New York.

Property preferences and usage

According to the NAR study, the majority (65%) of foreign buyers scooped up detached single-family homes, regardless of whether they lived abroad or in the U.S.

Among international buyers residing overseas, 18% prefered condominiums.

"U.K. and Canadian buyers purchased condominiums at higher rates, as they are most likely to use the property as a vacation home," reads the report.

Data indicates that across all groups of foreign cohorts, 49% purchased property in the U.S. to use as a vacation home, rental, or both.

However, intended usage varies widely across nationalities. Nearly 3 out of 4 Canadians use their U.S. real estate holdings as vacation homes.

Only 3% of Mexican buyers use properties strictly for vacation. Nearly half (47%) buy primary residences, and roughly one-third purchase residential rentals. 

Forty-four percent of Chinese buyers use their U.S. homes as primary residences, 20% rent them out, and 12% use them as vacation homes.  

In Miami, Bozovic says Canadians lean heavily toward condos, especially amenity-rich buildings sitting on the waterfront with resort-style facilities and turnkey units.

While personal use dominates, those interested in generating passive income tend to opt for condo-hotel properties, which offer greater flexibility.

"It's a hybrid model foreign buyers gravitate toward: a real vacation home when they want to use it, professionally managed the rest of the time, with none of the burden of being a landlord," she says.

Among Rutois' Canadian clients in South Florida, most occupy their properties from January through March, visit periodically on weekends, and rent them out during the offseason to offset housing costs.

Among those buyers, waterfront properties in prime locations remain in demand, but priorities are shifting.

"I have noticed my Canadian clients still care about being near the water, but have slowly transitioned their priorities to nicer amenities and walkable areas," says Rutois. "The beach is always nice, but being able to go downstairs and walk to shopping, good food, and attractions for the kids has become a big priority for many of my clients."

On the West Coast, foreign buyers gravitate toward homes with trendy wellness amenities like saunas and cold plunges, smart home features, theaters, and game rooms, says Garate-Lavalle.

She notes that most of her international clients purchase second homes in California for their personal use and that short-term rental use is rare.

"There are some that choose to rent [out] to offset some of the costs, but they would be medium- to long-term rentals," says the agent.