Foreign purchases of residential real estate in the United States declined by 14 percent in the 12 months ending March, reaching the second-lowest level since tracking began in 2006, according to a recent report from the National Association of Realtors (NAR). Despite the overall decrease in transactions, buyers from China remained the largest spenders, primarily acquiring higher-priced properties in states such as California.
During the period from April last year through March, international buyers purchased 67,100 U.S. homes, with a median price of approximately $465,000. This total represented a notable drop from the previous year, driven by factors such as limited housing inventory and rising prices, which outweighed gains from a slightly weakened U.S. dollar that could have otherwise improved foreign purchasing power.
By volume, Canadian and Mexican buyers led international home purchases, with Chinese buyers falling to third place behind them. Other leading countries by transaction volume included India and the United Kingdom, ranked fourth and fifth respectively. However, Chinese buyers—including those from mainland China, Hong Kong, and Taiwan—remained the largest group by dollar value, spending an estimated $7.6 billion on U.S. properties. This indicated an average purchase price near $1 million, reflecting a preference for more expensive homes.
Florida emerged as the most popular destination for foreign buyers, attracting about 20 percent of international residential purchases. Other favored states included California, Texas, New Jersey, and Georgia. The appeal of Florida is often attributed to its favorable winter climate, though recent legal restrictions on foreign ownership may affect future activity. In November, a federal appeals court allowed enforcement of a state law restricting property purchases by non-citizen, non-permanent resident Chinese nationals.
Texas, too, will impose new limits on foreign property ownership starting in September. The state passed a law banning individuals and entities from China, Russia, Iran, and North Korea from buying land or real estate, citing national security concerns. Exceptions apply to U.S. citizens, green card holders, and visa holders who may own one primary residence.
The report further detailed that among foreign buyers, 56 percent (37,600 homes) were recent immigrants or visa holders residing in the U.S., while the remaining 29,500 homes were purchased by buyers living abroad. In total, international buyers spent $45.3 billion on existing U.S. homes during the period, accounting for roughly 2 percent of all home sales nationwide—a 19.1 percent decline from the prior year.
Lawrence Yun, chief economist at the National Association of Realtors, noted the decline in foreign home purchases parallels a reduction in international tourism and visitor traffic to the U.S., underscoring the broader impacts of global travel trends on real estate markets.