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or the first time since 2017, foreign buyers have increased their purchases of existing U.S. homes, signaling a potential turning point in international interest in U.S. real estate, according to the National Association of REALTORS' (NAR) "2025 International Transactions in U.S. Residential Real Estate" report. The number of properties purchased by international buyers surged 44% compared to the previous year, but remains the second-lowest level since NAR began tracking such data in 2009.
International interest in buying U.S. real estate increased following the global economic recovery from pandemic-related disruptions, says Lawrence Yun, NAR's chief economist. However, elevated home prices and interest rates continue to dampen overall sales activity. The total dollar volume from international transactions rose to $56 billion, marking a 33% increase from the prior year.
Foreign buyers are drawn to the U.S. because many metro areas are relatively affordable compared to global city centers, according to NAR's report. Affordability isn't the only factor, as foreign buyers also value the country's strong protection of private property rights. International buyers tend to lean heavily into the upper end of the market and are more likely to use cash to complete their purchases.
The median purchase price among international buyers was $494,400, higher than the median price for all existing-home buyers at $408,500. Real estate pros are taking note: 20% of practitioners who are REALTORS reported working with at least one international client over the past year, up from 15% the prior year.
Asian buyers remain the largest group of international purchasers of U.S. real estate, comprising a 38% market share. China regained its position as the top country of origin among foreign buyers in the U.S., accounting for 15% of international buyer purchases last year. Florida remains the top U.S. destination for foreign buying activity, accounting for 21% of all international purchases.
International buyers tend to focus on vacation and investment properties, with nearly 50% purchasing homes for these purposes. They also show a diverse range of property preferences, including detached single-family homes, condos, and residential land. However, nearly 70% of REALTORS surveyed said they had an international client who backed out or was unable to purchase due to challenges such as high prices and financing issues.
Real estate agents working with foreign buyers often rely on personal contacts, referrals, and business relationships for leads, rather than online listings. Some agents are building their outreach by tapping into international community networks and seeking training opportunities, such as the Certified International Property Specialist (CIPS) designation.
