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Resurgence of foreign investment in the U.S. real estate market
The U.S. real estate market is undergoing a significant transformation, characterized by a marked increase in interest from international buyers. Following eight years of stagnation, foreign investment is witnessing a substantial revival. According to data from the National Association of Realtors (NAR), property purchases by non-U.S. residents surged by 44% from April 2024 to March 2025.
This increase occurred despite domestic homebuyers facing rising mortgage rates and escalating property prices. The total dollar value of these foreign transactions reached $56 billion, reflecting a 33% rise compared to the prior year.
Understanding the foreign investor’s perspective
Foreign nationals are increasingly drawn to American real estate, even amid a challenging market for local buyers. According to Yuval Golan, founder and CEO of the real estate financing firm Waltz, many international investors view the United States as a stable refuge compared to their home countries. Golan’s platform assists foreign clients in acquiring properties, revealing that 59% of transactions in the first half of 2025 involved refinancing. This trend suggests that investors are not only purchasing properties but also seeking to expand their real estate portfolios.
Key players in the foreign buyer market
According to data from the National Association of Realtors (NAR), China leads foreign property purchases, accounting for 15%. Canada follows closely at 14%, with Mexico at 8%. Interest in the U.S. real estate market extends beyond North America. Investors from India and the United Kingdom contribute 6% and 4% respectively. Golan highlights that most inquiries to his company are from clients in Israel and Canada. These clients are particularly interested in acquiring vacation homes or residences for their children studying in the United States.
The competition landscape for domestic buyers
Foreign buyers are increasingly targeting competitive markets with limited supply, notably in states such as Florida, California, Texas, Arizona, and New York. Casey Gaddy, a senior agent at Keller Williams Realty, notes that while luxury residential properties attract significant attention, there is also a rising interest in high-rise condominiums and single-family homes. According to Gaddy, some international investors consider their purchases a hedge against economic instability, while others seek secondary homes or aim to establish long-term rental income streams.
Impact on the domestic market
Purchases by foreign buyers represent only 2.5% of the overall market. However, the expansion of this segment can intensify competition for local homebuyers. George Ellison, co-founder of Propbee and a former executive at Bank of America, highlights that foreign investors often make cash offers with fewer contingencies. This practice can complicate the ability of American buyers to secure homes. Gaddy echoes this concern, indicating that rising demand from international markets may push first-time homebuyers out of contention, worsening the challenges associated with limited inventory.
The implications of foreign investments
Experts generally consider the influx of foreign capital into U.S. real estate a positive trend, despite competitive pressures. Golan suggests that a decline in foreign investment could indicate diminishing trust in the U.S. dollar, potentially harming the economy. In contrast, international buyers investing in American properties reinforces the dollar’s status and reflects confidence in the U.S. market.
Ellison notes that foreign investors’ willingness to participate in the U.S. housing market, even amid rising interest rates, signals strong fundamental conditions. He argues that international perspectives on U.S. housing demonstrate long-term confidence in property appreciation and rental demand, although they also reveal disparities in affordability for many American residents.
The increase in foreign investments in U.S. real estate highlights both the challenges faced by local buyers and the enduring strength of the American housing market. This trend not only revitalizes the market but also reflects a strong international confidence in the value of U.S. properties.
