Who’s Buying U.S. Real Estate? A Look at Top International Investor Nationalities

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The flow of $56 billion in international capital into U.S. residential real estate is significant. While I’ve explored where this money is going and how it’s being spent in previous articles, it’s equally important to understand *who* is making these investments. Pinpointing the primary countries of origin for international buyers reveals unique motivations and buying patterns. For property investors keen on understanding the global dynamics of the U.S. market, let’s take a closer look at the nationalities leading this investment charge.

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The Dominant Players: Top Countries of Origin

The National Association of Realtors® 2025 International Transactions in U.S. Residential Real Estate report provides a clear picture of the leading nationalities investing in U.S. homes. These five countries collectively represent a significant portion of all foreign transactions, underscoring their importance in the market.

Related: The Best U.S. Real Estate Markets for Foreigners Seeking Cashflow and Equity Growth in 2025

Canada: The Closest Neighbours, Consistent Investors

For years, Canadians have been the most active foreign buyers in the U.S. market, a trend that continues with them making up 21% of all international purchases. This enduring popularity is driven by several factors:

• Proximity and Lifestyle: Many Canadians seek warmer climates for vacation homes or retirement, with Florida being a perennial favourite.
• Strong Economic Ties: The close economic relationship between the U.S. and Canada facilitates cross-border investment.
• High Cash Purchases: Canadian buyers lead the top five in all-cash transactions, with 48% paying cash, reflecting strong financial positions and a desire for straightforward deals.

Mexico: Growing Influence and Proximity

Mexico holds the second position, accounting for 9% of foreign buyers. Their investment patterns are often influenced by geographical closeness and robust economic relationships, particularly with U.S. border states. Mexican buyers often seek properties for both personal use and investment, leveraging cultural and business connections.

• Regional Focus: States like Texas and California are popular due to shared borders and established communities.
• Investment & Personal Use: Properties can serve as vacation homes, retirement spots, or investments in a stable market.
• All-Cash Rate: 30% of Mexican buyers use all-cash, a solid figure reflecting their investment capacity.

Asia’s Powerhouses: China and India

Buyers from China (8%) and India (7%) continue to be significant forces in the U.S. real estate market. Their motivations are often tied to long-term financial planning, education, and wealth diversification.

• Education and Family: Many purchases are for children attending U.S. universities or for family members residing in the U.S.
• Wealth Diversification: U.S. real estate is seen as a stable and secure asset class for diversifying portfolios away from home country markets.
• All-Cash Rates: Chinese buyers’ all-cash rate stands at 24%, while Indian buyers are at 26%. While lower than Canadians, these figures still indicate substantial cash investments.

United Kingdom: Traditional Transatlantic Investors

The United Kingdom consistently ranks among the top international buyers, making up 4% of foreign purchases. This reflects a long history of transatlantic ties and a continued interest in U.S. properties for various reasons.

• Vacation and Retirement: Many British buyers seek properties in popular U.S. holiday destinations or for retirement.
• Investment Stability: The U.S. market offers perceived stability and growth potential compared to some European markets.
• All-Cash Rate: 39% of UK buyers pay all-cash, demonstrating strong financial capacity.

Related: UK Buyers Guide: How to Buy U.S. Real Estate Safely and Remotely From The UK

Common Threads and Diverse Motivations

While the top countries of origin have distinct cultural and economic ties to the U.S., a few common threads unite their motivations for investing in U.S. real estate:

• Safety and Security: The U.S. market is widely regarded as a safe haven for assets.
• Strong Property Rights: As Lawrence Yun, NAR Chief Economist, has consistently highlighted, the “strong protection of private property rights” is a fundamental draw for global capital.
• Diversification: Spreading investments across different countries and currencies is a key strategy for many international investors.
• Long-Term Value: The potential for appreciation and rental income makes U.S. real estate an attractive long-term asset.

Understanding these diverse yet interconnected forces from key international markets is essential for any property investor navigating the global landscape of U.S. real estate.

Previous Article: The Factors Driving Foreign Investment in U.S. Real Estate

Frequently Asked Questions (FAQs)

Which country is the leading source of international real estate buyers in the U.S.?

Canada continues to be the top country of origin for international buyers of U.S. residential real estate, accounting for 21% of all foreign purchases from April 2024 to March 2025. This long-standing trend is often attributed to proximity, shared cultural ties, and the appeal of U.S. vacation and retirement properties, particularly in states like Florida.

What percentage of Canadian buyers pay all-cash for U.S. properties?

Among the top five countries of origin, Canadian buyers have the highest propensity for all-cash purchases, with 48% of them paying cash for their U.S. real estate. This is slightly higher than the overall average of 47% for all international buyers and provides a significant competitive advantage.

Why do buyers from China and India invest in U.S. real estate?

Buyers from China and India often invest in U.S. real estate for diversification, educational purposes (for family members), and as a means of wealth preservation. While their all-cash rates are lower than Canadian buyers, their significant share of purchases underscores their continued interest in the stability and long-term appreciation potential of the U.S. market, particularly in urban and educational hubs.

What are the main motivations for buyers from the United Kingdom to purchase U.S. property?

Buyers from the United Kingdom are often motivated by the prospect of vacation homes, retirement properties, and investment opportunities. They frequently target traditional holiday destinations, benefiting from historical ties and cultural familiarity. Despite being a smaller percentage of overall buyers, their consistent presence reflects a sustained interest in the U.S. market’s stability and lifestyle appeal.