FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate

Hi… Welcome to my 2025 guide to the best U.S. real estate markets Foreigners👋

My name is David Garner, and I’ve closed on over 100+ rental properties in the United Sates for my own portfolio as an overseas-based Non-U.S. Citizen since 2016.

While the U.S. real estate market in general can be a great option for international investors looking to grow their wealth, choosing the right market can be challenging.

Today, I’m going to give you my top picks for overseas investors this year.

As Foreigners, we are looking for stable real estate markets that offer:

⚖️ Landlord-friendly laws
💸 Stable cashflow
📈 High rental demand
📉 Low vacancy rates
🏠 House price growth

In this article, I’ll give you the best U.S. cities and metro areas for Foreign property investors in 2025.

But bear in mind that while city and metro-level housing market data is useful, I am much more concerned with the quality of the street and neighbourhood.

With that in mind, here are the criteria I look at when assessing a local real estate market:

✅ Population growth/decline
✅ Household income
✅ Homeownership trends
✅ Vacancy rate
✅ Rent price growth
✅ House price trends
✅ Unemployment trends
✅ Average rents
✅ Commutability/transport

I am also looking at the local jobs market on a more regional basis – within a 25-minute commute of the property.

With all that said, let’s take a look at my top picks for Foreign property buyers in 2025…

View Properties: Search U.S. Investment Properties Tailored for Foreign Investors in our Online Investor Portal

🏘️ 1. Cleveland, Ohio

With a growing economy and resilient jobs market, steady house price growth and excellent rental yields, the Greater Cleveland Metro area has been a favourite of both U.S. and international property investors for years.

Cleveland Real Estate Statistics

📈 Median Sold Price: $179,800
📈 Annual Price Appreciation: 9.1% p.a.
📈 Average Rent: $1,650
📈 Cap Rates: 6% to 12%

Based on 3-bedroom single family home. Data from Rocket Mortgage March 2025 and HUD User median market rent 2025 .

Top Reasons to Invest in Cleveland Real Estate

After decades of decline, the population of the Greater Cleveland Metro area has stabilized in recent years. Indeed, some neighbourhoods are experiencing significant growth as first time homebuyers seek out areas with lower prices.

The Cleveland Metro area economy grew by 2.8% in 2024. At the same time, the cost of living remains around 9% lower than the national average. Housing costs for Cleveland residents are approximately 21% cheaper.

Despite consistent and steady house price growth for the past 10 years, prices in the Cleveland Metro area are still around 40% lower than the national average. At the same time, higher-than-average rents drive strong cashflow returns for investors.

Some of the reasons Cleveland real estate makes my toplist for foreign investors include:

✅ Landlord Friendly Law
✅ Stabilizing Population
✅ Resilient Jobs Market
✅ Low Cost of Living
✅ Low House Prices
✅ Strong Rental Market
✅ Steady Price Appreciation
✅ Low Vacancy Rates

Best Cleveland Neighbourhoods to Invest in Real Estate

The following Cleveland area neighbourhoods offer a balance of cashflow, steady price appreciation, and risk:

🏘️ South Hills
🏘️ Old Brooklyn
🏘️ Brooklyn Centre
🏘️ Clark-Fulton
🏘️ Cudell
🏘️ Stockyards
🏘️ West Boulevard
🏘️ Westpark
🏘️ Kamm’s Corners
🏘️ Bellaire-Puritas
🏘️ Riverside

Download Report: Download the Comprehensive Cleveland Real Estate Market Investor Report

🏘️ 2. Kansas City, Missouri

With a growing population and robust jobs market, low cost of living and affordable real estate, Kansas City is a rising star for real estate investors seeking stable cashflow and steady price appreciation.

Kansas City Real Estate Statistics

📈 Median List Price: $223,000
📈 Annual Price Appreciation: 4.0% p.a.
📈 Median Rent: $1,894
📈 Cap Rates: 6% to 12%

Based on 3-bedroom single family home. Data from Rocket Mortgage March 2025 and Hud User median market rents 2025.

Top Reasons to Invest in Kansas City Real Estate

The population of Kansas City has been growing steadily, with projections of continued growth of 3.4% through 2029.

The jobs market is also growing, with around +35,000 new jobs added in 2024, representing a 1.7% annual growth rate.

Houses prices are growing steadily in Kansas City, and rents are increasing at a rate of around 5% p.a. allowing foreign investors to capture equity growth and cashflow expansion.

Kansas City Real estate offers foreign property investors:

✅ Landlord Friendly Law
✅ Growing Population
✅ Robust Jobs Market
✅ Low Cost of Living
✅ Low House Prices
✅ Strong Rental Market
✅ Steady Price Appreciation

Best Kansas City Neighbourhoods to Invest in Real Estate

The following Kansas City neighbourhoods offer a balance of cashflow, steady price appreciation, and risk:

🏘️ Historic Northeast
🏘️ 18th and Vine
🏘️ West Plaza
🏘️ Manheim Park
🏘️ South Waldo
🏘️ Hickman Mills/North Grandview

View Properties: Search investment properties for sale in our online portal

🏘️ 3. Indianapolis, Indiana

Investors are attracted to the Indianapolis market due to it’s combination of a growing population, economy, and affordable house prices. No wonder then that the National Association of Realtors placed Indianapolis 6th on its 2025 list of housing hotspots.

Indianapolis Real Estate Statistics

📈 Median Sold Price: $243,900
📈 Annual Price Appreciation: 4.0% p.a.
📈 Median Rent: $1,799
📈 Cap Rates: 6% to 10%

Based on 3-bedroom single family home. Data from Rocket Mortgage March 2025 and Hud User median market rents 2025.

Top Reasons to Invest in Indianapolis City Real Estate

The population of Indianapolis hit 1.925 million in 2025. this represents an annual growth rate of 1.17% p.a. Projections indicate the population reaching 2.1 million by 2035, and a total of +405,000 new residents by 2050.

One of the main reasons people are moving to Indianapolis is the attractive cost of living. According to Payscale, the cost of living in Indianapolis is around 10% below the national average, with housing costs in particular 22% lower.

Another driver of inward migration is the jobs market, which grew by 1.6% in 2024.

This steady growth in population is driving demand for good quality rental property in areas close to major employment centres. This indicates potential for continued long-term house price, rent price growth.

Some of the main reasons foreign investors are choosing Indianapolis real estate are:

✅ Landlord Friendly Law
✅ Growing Population
✅ Growing Economy
✅ Affordable Housing
✅ Robust Rental Market
✅ Steady Price and Rent Appreciation

Best Indianapolis Neighbourhoods to Invest in Real Estate

The following Indianapolis neighbourhoods offer a balance of cashflow, steady price appreciation, and risk:

🏘️ Muncie
🏘️ Rockport
🏘️ New Castle
🏘️ Broad Ripple Village
🏘️ Fountain Square
🏘️ Bates-Hendricks
🏘️ Irvington
🏘️ Eagle Creek

View Properties: Search investment properties for sale in our online portal

🏘️ 4. Birmingham, Alabama

The Birmingham Metropolitan Area – also known as Greater Birmingham – is one of the most affordable property markets in the US. Relatively low house prices and stable cashflow make it one of the best places for foreigners to invest in US property.

Birmingham Alabama Real Estate Statistics

📈 Median List Price: $312,300
📈 Annual Price Appreciation: 3.4% p.a.
📈 Median Rent: $1,736
📈 Cap Rates: 6% to 10%

Data from National Association of Relators Q4 2024 and Hud User median market rents 3 bedroom single family home 2025.

Top Reasons to Invest in Birmingham Alabama Real Estate

Inward migration is driving population growth in the Greater Birmingham Area, with the number of residents increasing by 11,419 since 2021 (0.97% growth rate).

One of the biggest drivers of the this surge is the low cost of living. According to Payscale Data, the overall cost of living in Birmingham is around -8% below the national average. Housing in particular is 23% cheaper than the rest of the U.S.

Meanwhile, the regional economy is growing rapidly. Birmingham Metro Area GDP grew an astonishing 27.6% between 2020 and 2023.

Further, Birmingham ranked 5th nationally for jobs growth adding +10,600 new jobs in 2024, significantly outpacing population growth.

The unemployment rate in Birmingham is also low at just 3.2% (Feb 2025) which is below the national average.

Finally, the cost of owning a property in Birmingham is very reasonable. The median annual property tax bill is just $539, which is $1,861 lower than the national median of $2,400.

Foreign investors are buying property in Birmingham Alabama due to:

✅ Landlord Friendly Law
✅ Growing Population
✅ Growing Economy/Jobs Market
✅ Affordable Housing
✅ Low Operating Costs
✅ Steady Price and Rent Appreciation

Best Birmingham Alabama Neighbourhoods to Invest in Real Estate

The following Birmingham Alabama neighbourhoods offer foreign investors a balance of affordable property prices, stable cashflow, and steady price appreciation:

🏘️ Pleasant Grove
🏘️ Forestdale, Adamsville, Graysville
🏘️ Grayson Valley and Chalkville
🏘️ Hueytown
🏘️ Center-Point & Roebuck
🏘️ Pinson, Clay, Trusville
🏘️ Leeds, Moody
🏘️ Childersburg and Sylacauga
🏘️ Fultondale and Gardendale
🏘️ Jasper
🏘️ Pelham and Alabaster
🏘️ Over the Mountain

View Properties: Search investment properties for sale in our online portal

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