The US real estate market is experiencing a significant jump in foreign investment. According to a report from the National Association of Realtors (NAR), 2025 has seen a 44% increase in buyer transactions compared to last year. That’s 78,000 properties totalling around $56 billion.
This ballooned $56 billion total is a 33.2% jump from 2024, when foreign investors spent $42 billion. The industry has also seen a record high median purchase price, at $494,400. Top destinations and total percentages of all foreign real estate buyers include:
- Arizona: 5%
- New York: 7%
- Texas: 10%
- California: 15%
- Florida: 21%
Data show that 56% of all foreign purchases went to recent U.S. visa-holding immigrants, who bought 43,700 homes for a total of $26.9 billion. Real estate buyers residing abroad made a total of 34,400 purchases worth $29.1 billion, accounting for 44% of all foreign purchases, according to NAR.
The NAR report also found that the top 5 countries of origin, including their percentages of purchases, number of homes purchased, and dollar amount, equate to:
- United Kingdom: 4% homes purchased at 3,100 at $2 billion
- India: 6% with a total of 4,700 homes purchased at $2.2 billion
- Mexico: 8% with 6,200 homes purchased at $4.4 billion
- Canada: 14% with 10,900 homes purchased at $6.2 billion
- China: 15% with 11,700 homes purchased at $13.7 billion
NAR chief economist Lawrence Yun states, “Boosted by a significant increase in the state’s housing inventory, Florida remained the top destination for foreign home buyers, extending a streak of at least 15 years. To some degree, due to stubbornly high mortgage rates, a greater share of international home buyers paid cash—47% compared to 28% among all buyers—and they were more likely to purchase homes priced in the upper end of the market. Foreign buyers are drawn to investing in American real estate, in part, by our country’s strong protection of private property rights.”
Increased foreign investment raises concerns about the average cost to build a home for domestic buyers, but it also stimulates the economy in turn. The research shows that as foreign buyers close on US real estate, it creates upward pressure on rent and home prices. This is particularly the case as international buyers pay in cash 47% of the time.
Paying cash for properties can push sales above the original asking price, effectively pricing out low-income communities and first-time homebuyers. While it does create jobs and encourages wealthy internationals to spend in the neighbourhoods, the increased displacement is becoming increasingly difficult to grapple with.
And don’t forget to subscribe to the newsletter and follow Under the Hard Hat on LinkedIn to stay on top of construction market news.
