2025 NAR Report: A Closer Look at Foreign Buyers Purchasing U.S. Real Estate

Think foreigners are pulling out of U.S. real estate? Think again!
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Foreign investment in U.S. real estate just jumped 33%. According to the National Association of Realtors’ 2025 report on International Transactions in U.S. Residential Real Estate, foreign buyers purchased $56 billion worth of residential property between April 2024 and March 2025  a drastic increase from the year before. The bottom line: it signifies that the global appetite for American real estate is growing.

In this article, we break down the report’s key insights, including buyer demographics, top countries of origin, preferred U.S. markets, purchasing patterns, and the ongoing challenges international investors continue to face. Let’s take a closer look at what the numbers reveal.

Key takeaways

• Despite ongoing tariff discussions, foreign investors remain confident in U.S. real estate, with total purchase volume increasing by $14 billion compared to last year’s report.
  
  
• Florida, Texas, and California remain among the top states attracting foreign investment in U.S. real estate.
  
  
• 56% of non-resident foreign buyers paid all-cash for U.S. real estate.

Foreign purchases grow by $14 billion in dollar volume

Time and time again, U.S. real estate proves to be a top choice for foreign investors looking to park their money safely and grow their wealth. Despite some negative headlines, the numbers tell a clear story — foreign investment in U.S. residential real estate has jumped by $14 billion compared to last year. This surge reflects strong global confidence in the stability and long-term value of American property.

Why is demand rising?

For starters, buying U.S. real estate means holding wealth in a currency backed by the world’s largest economy. Converting local currency into U.S. dollars helps investors avoid the risks of inflation and currency volatility common in many countries. Beyond currency benefits, U.S. real estate has tripled over the past 20 years, making it a blue-chip investment for uncertain times. 

With ongoing support from U.S. programs encouraging foreign investment—and a regulatory environment designed to favor investors—it’s no surprise that the dollar volume of foreign property purchases continues to grow. Add in the fact that rental yields in the U.S. are often higher than in other countries, and it becomes clear why the U.S. remains a global magnet for real estate investment.

Purchase price insights

Not only are there more foreign buyers in the market, but they also spend more than their American counterparts. Foreign buyers continue to invest in higher-priced properties, with a median purchase price of $494,400 in 2025 compared to $408,500 for all existing properties sold in the U.S.

The number of foreign buyers grew to 78,100 between April 2024 and March 2025, making up nearly 2% of all existing-property sales. This shows that international investors are both increasing in number and making a bigger financial impact on the U.S. real estate market.

These numbers are based on surveys of real estate agents, capturing a large portion of foreign buyer activity. However, the actual number of foreign buyers is likely even higher since many purchase new-build properties directly from builders. These transactions often don’t involve real estate agents and may not be fully reflected in these figures. All of this underscores the strength and excitement among foreign buyers for U.S. real estate, signaling a vibrant and growing market for international investment.

Top buying countries

Foreign investment in U.S. real estate continues to come from a diverse range of countries, with certain nations leading the way in both volume and dollar value. The 2025 report highlights the top five countries fueling this growth:

• China: 15% of foreign buyers, $13.7 billion 
• Canada: 14% of foreign buyers, $6.2 billion 
• Mexico: 8% of foreign buyers, $4.4 billion 
• India: 6% of foreign buyers, $2.2 billion 
• United Kingdom: 4% of foreign buyers, $2.0 billion 

Looking at the data from 2024 compared to 2025 reveals some notable shifts among top foreign buyers. Canada, the United States’ northern neighbor, accounted for 13% of foreign buyers and $5.9 billion in purchases in 2024, growing slightly to 14% and $6.2 billion in 2025. This reflects steady and consistent interest from Canadian investors.

China showed a significant increase, rising from 11% of buyers and $7.5 billion in 2024 to 15% of buyers and $13.7 billion in 2025. This signals a strong resurgence of confidence among Chinese investors. Meanwhile, Mexico’s share of foreign buyers decreased from 11% in 2024 to 8% in 2025; however, its dollar volume increased from $2.8 billion to $4.4 billion. This suggests that although fewer buyers entered the market, those who did invested in higher-value properties.

India’s presence moderated, dropping from 10% of buyers and $4.1 billion invested in 2024 to 6% and $2.2 billion in 2025. Colombia, which represented 4% of buyers and $0.7 billion in 2024, did not rank in the top five in 2025 but remains an important source of foreign investment. Overall, this data confirms that U.S. real estate continues to attract strong demand from its neighboring countries and key global markets, with Canada and China driving much of the recent growth.

International investor state preferences 

Foreign buyers continue to favor a mix of sun-soaked destinations and economic powerhouses when investing in U.S. real estate. The 2025 data highlights key states where international investors are focusing their attention:

• Florida (21%): Florida continues to dominate as the top destination for foreign buyers. It’s a global vacation hub, offers no state income tax, and has a business-friendly environment. Large international communities, from Colombia and across Latin America to Israel and Canada, make the state especially attractive for foreign investors seeking both lifestyle and familiarity.
  
  
• California (15%): California saw a major jump in 2025, thanks in large part to renewed interest from Chinese buyers. The state’s economic strength, tech and education hubs, and well-established cultural ties with Asia make it a top choice for those seeking long-term growth and a globally connected environment.

• Texas (10%): While Texas saw a slight dip in share, it remains a major draw for Mexican investors, thanks to its proximity, shared culture, and thriving cities like Houston, Austin, and Dallas. Its affordable property prices, strong job market, and no state income tax continue to make it one of the most practical investment destinations in the U.S.

• New York (7%): New York re-entered the top five in 2025, reaffirming its status as a global icon. Known around the world for its luxury real estate, high rental demand, and cultural prestige, New York appeals to buyers looking for blue-chip investments in one of the world’s most recognized cities.
  
  
• Arizona (5%): Arizona remains a consistent favorite, especially among Mexican buyers. With its proximity to the border, desert climate, and affordable but fast-growing metro areas like Phoenix, it offers a balance of value, lifestyle, and accessibility that continues to draw cross-border interest.

Compared to 2024, Florida further solidified its lead as the top destination, increasing its share. California also saw a notable upgrade, moving from third to second place with a 4% gain. Texas experienced a slight dip but remains a strong contender, while New York’s entry into the top five highlights a renewed interest in its market. Arizona maintained steady appeal, continuing to attract buyers drawn to its unique blend of affordability and lifestyle. These shifts reflect evolving buyer priorities, balancing lifestyle, economic opportunity, and community connections.

Challenges facing international buyers

The 2025 NAR report makes one thing clear: foreign buyers are confident in U.S. real estate. Even so, there are still barriers that make it difficult for many to enter U.S. real estate markets. Despite strong demand and rising investment levels, international buyers often face challenges that domestic buyers do not. Removing these obstacles could open the door to even more global investment and broader access to U.S. real estate opportunities.

Limited inventory

In 2025, 28% of international clients cited a lack of available property options as the main reason they didn’t move forward with a U.S. purchase. With inventory still tight in many desirable markets, especially in coastal states and major metro areas, buyers often struggled to find properties that met their criteria.

Cost of property 

Affordability was a dealbreaker for 25% of international buyers in 2025. Even those ready to invest found themselves priced out as property values climbed across the U.S., particularly in major markets.

Popular destinations like California, Florida, and New York continue to command premium prices—and for good reason. These markets offer strong long-term value, lifestyle appeal, and rental demand. Still, for some international buyers, rising prices combined with tight inventory made it harder to find the right fit within their budget. Buyers navigating currency fluctuations or limited financing options may need more time or planning, but many still view these markets as worth the effort.

Financing: is cash still king?

Nearly half of all foreign buyers (47%) purchased U.S. properties in all-cash transactions. That’s a striking contrast to the 28% average among all existing American buyers. For non-resident international buyers, the number climbs even higher to 56%.

Financing remains a significant hurdle for international buyers. Many U.S. lenders have strict requirements, including higher down payments and extensive documentation, which can be difficult for foreign nationals to meet. Without access to flexible mortgage options, qualified buyers are often forced to pay in cash or delay their investments.

While foreigners pay all-cash, cash is not king: leverage is. Financing allows investors to spread their capital across multiple properties instead of locking it into just one, opening the door to greater diversification. Addressing these financing challenges is key to generating even greater opportunities for international investors and expanding their participation in U.S. property investment. Waltz offers financing options for rent-ready rental properties across 41 states. Foreigners who find cash flowing properties can get up to 70% financing—without U.S. credit.

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A bright future for foreign investment in U.S. real estate

The latest data shows that foreign investment in U.S. real estate is growing strong, with more buyers and bigger purchases across multiple key markets. Despite challenges like limited inventory and financing, strong global confidence keeps driving demand. For international investors, the U.S. remains a prime destination to build and maintain wealth.

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