Foreign investment surges in American real estate market
The American real estate market is witnessing a significant influx of foreign buyers, representing the first notable increase in eight years. Data from the National Association of Realtors (NAR) indicates that from April 2024 to March 2025, property purchases by non-U.S. citizens increased by 44%. This rise occurred despite high mortgage rates and soaring housing prices that have kept many American homebuyers at bay. The total dollar value of these transactions reached $56 billion, marking a 33% increase compared to the previous year.
This heightened interest from international buyers contrasts sharply with the challenges faced by domestic purchasers. This raises important questions about the implications for U.S. real estate investors.
Understanding the appeal of U.S. real estate for foreign investors
Several factors contribute to the increasing interest of foreign investors in American real estate. Many perceive the United States as a bastion of stability, particularly when compared to their home countries. Yuval Golan, CEO and founder of the real estate financing platform Waltz, highlighted this perspective in a discussion with BiggerPockets. His company supports international buyers in navigating the complexities of the U.S. property market.
Trends in foreign investment
Golan observed that during the first half of 2025, an impressive 59% of transactions facilitated by his firm were refinances. This trend indicates that foreign investors are not merely purchasing properties; they are also seeking to expand their portfolios. He remarked, “Typically, individuals aiming to liquidate their properties do not opt for refinancing.”
The National Association of Realtors (NAR) data reveals key insights into global investment trends in the real estate market. Chinese buyers lead the pack, accounting for 15% of foreign investment in U.S. properties. Canada follows closely with a 14% share, while Mexico represents 8%. Other significant contributors include India and the United Kingdom, with shares of 6% and 4%, respectively. According to Golan, his company has noted substantial interest from investors in Israel and Canada. These investors are primarily motivated by the desire to acquire vacation homes and secure residences for their children studying in the United States.
Market dynamics and implications for U.S. buyers
Foreign investors frequently target high-demand markets with limited inventory, including Florida, California, Texas, Arizona, and New York. According to Casey Gaddy, a senior agent at Keller Williams Realty, most of these foreign investments focus on luxury residential properties. However, there is also an increasing interest in high-rise condos and single-family homes.
Competitive landscape for domestic buyers
Gaddy explained that the motivations behind real estate purchases vary widely. Some investors view real estate as a hedge against economic instability, while others seek to establish long-term rental income streams. However, the influx of foreign capital can intensify competition for domestic buyers. George Ellison, co-founder of Propbee and a former real estate executive at Bank of America, noted that foreign purchases represent approximately 2.5% of the overall market, yet they can significantly impact local buyers. He stated, “Foreign investors often present cash offers with fewer contingencies, which can make it more challenging for American buyers to secure homes.”
The current competitive landscape poses significant challenges for first-time homebuyers. Gaddy noted the reality of limited inventory in many metropolitan areas. An influx of demand from international buyers may further hinder their market entry.
Positive outlook for the U.S. real estate market
Despite these challenges, industry experts generally perceive the increase in foreign investment as a positive sign for the U.S. economy. Golan stated, “If foreign buyers were to withdraw from the U.S. real estate market, it would signal a lack of trust in the U.S. dollar, which could have detrimental effects on the economy.” He stressed that ongoing interest from international investors bolsters the dollar’s position and reflects strong market fundamentals.
International investment in U.S. housing market
Ellison highlighted the growing international interest in U.S. housing as an indicator of confidence in long-term value appreciation and rental demand. He remarked, “This trend, while potentially creating affordability challenges for many Americans, ultimately underscores the robustness of the U.S. housing market.”
The influx of foreign investment may increase competition for local buyers. However, it also reflects a resilient and attractive U.S. real estate market. As international investors continue to invest in American properties, the implications for the economy remain largely positive.