Foreign Investment in U.S. Real Estate Surges 33.2% to $56 Billion

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The U.S. real estate market just got a major boost from international investors. After several years of cooling, foreign investment in U.S. residential property has seen a dramatic rebound. New data shows that global buyers poured a staggering $56 billion into the market from April 2024 to March 2025. This isn’t just a number; it’s a clear signal. This surge means new opportunities and shifts in market dynamics that every international real estate investor needs to understand. Let’s break down what this resurgence means for you.

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The Big Picture: A Significant Rebound

For the first time since 2017, we’re seeing a genuine uptick in international investment in U.S. residential real estate. The total dollar volume of foreign buyer purchases hit $56 billion in the 12-month period ending March 2025. This represents a substantial 33.2% increase from the previous year. The number of homes purchased also saw a healthy jump, rising 44% to 78,100 properties. These figures clearly indicate a renewed confidence in the U.S. housing market among global investors.

This growth comes after several years of decline, showing that global capital is once again finding its way to American shores. As Lawrence Yun, NAR Chief Economist, stated, “International interest in buying U.S. real estate increased following the global economic recovery from several years of pandemic-related disruptions.” He also noted that while interest is up, “elevated home prices and interest rates continue to dampen overall potential sales activity and remain well below pre-pandemic levels.” This highlights a nuanced market – strong international demand but still facing domestic headwinds.

Related: The Best U.S. Real Estate Markets for Foreign Nationals and Non-Residents Seeking Cashflow and Equity Growth in 2025

Who’s Investing and Where They’re Going

Understanding who is buying and where they are focusing their attention is crucial for any aspiring international real estate investor. The latest report highlights a familiar top five, with some notable shifts:

China has reclaimed its spot as the leading country of origin, with Chinese investors spending a remarkable $13.7 billion and making up 15% of all foreign buyers. This significant investment often targets higher-priced properties, with Chinese buyers having the highest average purchase price among all international groups.

Resident vs. Non-Resident Buyers: A Deeper Look

The report also distinguishes between international buyers already residing in the U.S. and those living abroad. This breakdown offers valuable insight:

• Resident Foreign Buyers (holding visas or recent immigrants): Purchased 43,700 homes (56% of all foreign purchases) with a total dollar volume of $26.9 billion.

• Foreign Buyers Living Abroad: Purchased 34,400 homes (44% of all foreign purchases) with a total dollar volume of $29.1 billion.

This shows that while a majority of transactions are from those already in the U.S., a significant portion of capital is still flowing in from investors residing outside the country.

Where are these investors putting their money? The top destinations remain concentrated in a few key states:

Florida continues its reign as the most popular destination for international property investors, attracting 21% of all foreign buyers. This is a consistent trend, as Lawrence Yun highlighted, Florida has “extended a streak of at least 15 years” as the top destination, boosted by its increasing housing inventory. California is also a strong contender at 15%. These states offer diverse opportunities, from vibrant urban centers to attractive coastal properties and desirable vacation home markets.

Our own experience so far in 2025 runs somewhat contrary to this. Most of our clients are buying rental properties in the Midwest and South. That’s where we’re finding the best deals that cashflow well enough to cover mortgage payments and operational costs. We’re focussing almost exclusively on secondary markets with string fundamentals that support the case for long-term equity growth.

Related: The 7 Best U.S. Real Estate Markets to Buy Rental Properties in 2025

Financial Dynamics: Why the Surge Continues

One of the most striking aspects of international investment is the strong financial position of these buyers. Nearly half (47%) of foreign buyers paid all-cash for their U.S. properties. This is significantly higher than the 28% seen among all existing-home buyers in the U.S. This strong purchasing power allows international investors to compete effectively in competitive markets and often close deals more quickly.

As Lawrence Yun explained, “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.” This suggests that investors with substantial cash reserves are finding favourable conditions to acquire properties, especially when domestic buyers might be more sensitive to rising interest rates.

The median purchase price for foreign buyers was $494,400, a record high and up 4.1% from the previous year. This suggests a preference for higher-value properties or perhaps a greater focus on prime locations. Despite these higher price points, the U.S. still presents an attractive value proposition. Compared to property prices in central areas of major global cities like Monaco or Hong Kong, U.S. metro areas remain comparatively inexpensive. As Yun further noted, “Foreign buyers are drawn to investing in American real estate, in part, by our country’s strong protection of private property rights.” This fundamental aspect of U.S. law provides a significant draw for global capital.

Related: Foreign National Mortgages: Your Essential 2025 Guide for Non-Residents

Currency fluctuations also play a role. As of March 2025, more Mexican Pesos (24%), Canadian Dollars (9%), Chinese Yuan (3%), Euros (3%), and British Pounds (1%) were needed to purchase a U.S. dollar compared to a year ago. This makes U.S. homes technically more expensive in local currency terms for some buyers. However, the overall appeal and long-term outlook of the U.S. market often outweigh these short-term currency shifts.

Related: U.S. Real Estate Market Forecast and Expert Predictions for the Next 5 Years to 2030

What This Means for You, the International Investor

The surge in foreign investment signifies a healthy and attractive market. Here’s what you should take away:

• Increased Competition: With more international buyers entering the market, competition, especially in popular states like Florida and California, will likely increase. Being prepared with financing and clear objectives is key.

• Strategic Opportunities: The data shows a strong preference for suburban areas (44% of foreign buyers purchased there) and single-family homes or townhomes (77%). These segments might offer more consistent demand and rental income potential.

• Long-Term Vision: Many foreign buyers (47%) purchase properties for vacation homes or rentals. This highlights a strategic, long-term investment approach rather than just primary residence acquisition. Consider the potential for rental income and capital appreciation.

• Leverage Cash Power: If you have the means, an all-cash offer can significantly strengthen your position in a competitive market, as nearly half of international buyers are already doing.

The 2025 data paints a clear picture: the U.S. real estate market is back on the global investment map. By understanding these trends and adapting your strategy, you can position yourself for success in this dynamic environment. The opportunities are there for discerning international real estate investors.

Related: The Best U.S. Real Estate Markets for First Time Investors

My Two Cents…

At Cashflow Rentals, we’ve seen a significant uptick in enquiries for international investors in H1 2025. The reasons driving this interest varies significantly from one buyer to another, but overall these folk are all looking outside their domestic markets due to a lack of opportunity at home.

Investors from the UK are concerned about increasing landlord regulation and higher taxes. Buyers from Australia and Canada are looking for real estate at a better price point that offers more cashflow. Latin America buyers want to convert their local currency savings into US Dollar assets that generate USD income.

Most of our clients come to us with some idea of where they want to buy real estate estate in the U.S. Mostly, that’s in the regional markets that are popular for other reasons like Florida, Texas, or California. That said, most of the transactions we’ve been party to so far have been in the Midwest and South. Those are the markets where we’re finding the best combination of housing affordability, strong jobs markets, good rent-to-price ratios, and reasonable landlord/tenant regulations.

Around half of our buyers pay with cash. The rest are using DSCR loans to purchase rental properties. Even with U.S. mortgage rates sitting relatively high compared to recent historic lows, there are literally floods of deals out there that cashflow well provided you can negotiate the right terms with the seller and your lender.

Moving forward, I think the current rebalancing of the U.S. housing market, combined with access to good financing options for foreign nationals and non-residents, and a lack of good opportunities at home, will continue to drive more foreign dollars into U.S. real estate through 2025/6.

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Frequently Asked Questions (FAQs)

What is the current state of foreign investment in U.S. real estate?

Foreign investment in U.S. residential real estate saw a significant rebound from April 2024 to March 2025. The total dollar volume of purchases by international buyers surged to $56 billion, representing a 33.2% increase from the previous year. The number of existing homes purchased by foreign buyers also increased by 44% to 78,100 properties, marking the first rise since 2017. The median purchase price reached a record high of $494,400.

Which countries are investing the most in U.S. property?

In the latest period, China emerged as the top country of origin, accounting for 15% of foreign buyer purchases and a substantial $13.7 billion in dollar volume. Following China are Canada (14% of buyers, $6.2 billion), Mexico (8% of buyers, $4.4 billion), India (6% of buyers, $2.2 billion), and the United Kingdom (4% of buyers, $2.0 billion).

What is the average price paid by international buyers for U.S. homes?

The median purchase price for foreign buyers was $494,400 during April 2024 to March 2025, a record high and up 4.1% from the previous year. This is notably higher than the overall U.S. median existing-home price of $408,500. Interestingly, Chinese investors had the highest average purchase price at $1.2 million.

Are U.S. homes still affordable for international investors despite rising prices?

Despite a higher median purchase price for foreign buyers, U.S. homes are still considered comparatively inexpensive when compared to property prices in central areas of major global cities. While currency fluctuations can impact affordability (e.g., more Mexican Pesos or Canadian Dollars were needed to buy a U.S. dollar compared to a year ago), the relative value and stability of the U.S. market continue to attract international investors. Furthermore, a significant share of international buyers (47%) pay all-cash, which helps them navigate higher interest rate environments.