U.S. Real Estate: A Global Investment Hub? Key Trends for International Investors in 2024

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The United States has long been a top choice for real estate investors from around the world. Its stable economy and diverse property options attract many. I’ve personally bought over 120+ rental properties in the U.S. as a foreign national. But how has international activity in the U.S. housing market changed recently?

This article breaks down the latest data from the National Association of REALTORS® (NAR) 2024 International Transactions in U.S. Residential Real Estate Report. We will explore key trends from April 2023 to March 2024. This will help international real estate investors understand the market and make informed decisions.

Key Takeaways: Global Investment in U.S. Real Estate

• Overall Decline: International sales volume and the number of purchases decreased in the latest period.

• Top Buyers: Canada, China, Mexico, India, and Colombia remain the leading countries of origin.

• Key Destinations: Florida, Texas, and California continue to be the most popular states for foreign buyers.

• Higher Prices: International buyers typically pay more than the overall U.S. median home price.

• Cash is King: A high percentage of international buyers, especially non-residents, make all-cash purchases.

• Investment Focus: Many non-resident buyers purchase properties for vacation or rental use.

Investment Properties: Browse Turnkey Rental Properties for Non-Residents in our Online Portal

Overview of International Investment Trends

The U.S. residential real estate market saw a notable shift in international transactions between April 2023 and March 2024. The overall volume and number of purchases by foreign buyers decreased.

International Transaction Volume & Number of Purchases (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

The dollar volume of foreign buyer purchases fell to $42 billion. This is a 21.2% decrease from the previous 12-month period. The number of homes bought by foreign buyers also dropped significantly to 54,300. This marks a 36% decline and is the lowest level since NAR began tracking this data in 2009.

This slowdown is linked to global economic conditions. These include a stronger U.S. dollar, which makes U.S. property more expensive for foreign buyers. High U.S. home prices also play a role. Despite the decrease, international buyers still represent a notable part of the U.S. housing market.

Understanding Buyer Types:

• Non-resident foreigners (Type A): These are non-U.S. citizens who live outside the U.S. They made up 43% of purchases.

• Resident foreigners (Type B): These are non-U.S. citizens who have recently immigrated (less than two years) or hold non-immigrant visas and live in the U.S. for more than six months. They accounted for 57% of purchases.

Related: The Best U.S. Real Estate Markets for Non-Residents and Foreign National Investors

Who is Investing and Where?

Certain countries and U.S. states continue to be hot spots for international real estate activity.

Top 5 Countries of Origin for U.S. Real Estate Purchases (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report Note: China includes buyers from the People’s Republic of China, Hong Kong, and Taiwan. Average prices for Mexico and Colombia were not explicitly stated in the highlights.

Canada returned as the top country by number of buyers. However, China remained the largest by dollar volume, due to a very high average purchase price of $1.3 million. This reflects Chinese buyers’ preference for more expensive properties, often in states like California and New York.

From my own point of view, we’ve seen enquiries increase from prospective buyers in the UK, Canada, Australia and Latin America. From the conversations I’m having on a daily basis, buyers from those countries are looking outside their domestic markets due to a combination of higher taxes, increasing regulations, and a lack of housing affordability.

Top 5 U.S. State Destinations for International Buyers (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

Florida continues to be the most popular destination, especially for Canadian and Latin American buyers. Texas and California also remain strong choices, attracting diverse groups of international investors. These states often offer a mix of investment opportunities, from vacation homes to primary residences and rental properties.

Most of the enquiries we receive here at Cashflow Rentals are for rental properties in the Midwest. As we don’t really deal with vacation homes, our clients tend to prefer the markets where prices are more affordable, and rents cover debt service and operating costs.

Related: Investing in Cleveland Real Estate: Everything You Need to Know

What International Investors Are Buying

International buyers often have different preferences for property types and their intended use compared to domestic buyers.

Median Purchase Price Comparison (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

International buyers, on average, purchased more expensive properties than the overall U.S. median. This reflects their choice of location and property types. 18% of foreign buyers purchased properties worth over $1 million.

Our primary product is single family and small multifamily properties. Those homes in the right market tend to be priced between $120,000 and $350,000. I think that price point is somewhat of a sweet spot across the Midwest.

Intended Use of Property by International Buyers (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

Nearly half (45%) of foreign buyers purchased property for vacation or rental use. This is much higher than the 16% among all U.S. existing-home buyers. Non-resident buyers are especially likely to buy for these purposes. Colombian buyers notably focused on residential rentals (68%), while Indian buyers primarily sought homes for primary residence (66%).

All of our buyers are investors. They rent out the homes we source for them. Those types of buyers are most interested in metrics like rental demand, vacancy rates, and rent-to-price ratios.

Property Type Purchased by International Buyers (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

While detached single-family homes remain the most popular, foreign buyers show a higher preference for condominiums than overall U.S. buyers. Non-resident buyers especially favor condos, often for rental or vacation use in central cities.

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

Financing International Real Estate Purchases

A key characteristic of international transactions is the high rate of all-cash purchases.

All-Cash Purchases by International Buyers (April 2023 – March 2024)

Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

Half of all foreign buyers made all-cash purchases. This is much higher than the 28% among all U.S. existing-home buyers. Non-resident foreign buyers are even more likely to pay all-cash (68%). This trend is driven by factors like tight competition, currency exchange rates, and the difficulty international buyers can face in obtaining U.S. mortgage financing.

Our clients tend to use DSCR loans to purchase their rental properties in the U.S. While we do deal with some cash buyers, most investor tend to use leverage in one form or another to expand their portfolios and optimize their return on investment.

Top 5 Countries by All-Cash Purchases:

• Canada (69%)
• China (68%)
• Mexico (44%)
• Colombia (42%)
• India (27%) – Notably lower, as most Indian buyers reside in the U.S. and can obtain mortgages.

Related: U.S. Mortgages for Foreign Nationals and Non-Residents: 2025 Essential Guide

Implications for the U.S. Housing Market and International Real Estate Investors

The trends in international transactions offer both challenges and opportunities for investors.

Challenges for International Investors

• Decreased Activity: The overall decline in international purchases suggests a tougher market. This could be due to higher U.S. prices and a strong dollar.

• Financing Difficulty: Obtaining U.S. mortgage financing can be a significant hurdle for non-resident buyers. This often necessitates all-cash purchases.

• Finding Property: Many REALTORS® reported that international clients decided not to purchase because they couldn’t find a suitable property (36%) or due to the cost (32%). Source: National Association of REALTORS® 2024 International Transactions in U.S. Residential Real Estate Report

Related: How to Structure Your U.S. Property Investment for Maximum Tax Efficiency and Liability Protection

Opportunities for International Investors

• Long-Term Appeal: Despite recent dips, the U.S. remains a stable and attractive market for long-term investment. Its strong economy and property rights are key draws.

• Rental Income Potential: The high percentage of international buyers seeking rental properties highlights a clear investment strategy. Strong rental markets in popular states offer good cash flow.

• Diversification: Investing in U.S. real estate can offer portfolio diversification. This is especially true for investors from regions with less stable economies.

• Comparative Affordability (in some areas): While U.S. prices are high, some U.S. metro areas offer more affordable prices per square meter compared to central areas of global cities like Hong Kong or Zurich. (See page 9 of the report for a detailed comparison).

Related: Your Essential Guide to U.S. Taxes for Non-Resident Real Estate Investors

Strategic Advice for International Investors

• Focus on Goals: Clearly define if you are seeking a primary residence, vacation home, or rental property. This will guide your location and property type choices.

• Understand Financing: Be prepared for the likelihood of an all-cash purchase, especially if you are a non-resident. Research specialized lenders who cater to foreign nationals if financing is needed.

• Local Expertise is Key: Work with experienced local real estate agents who understand international transactions. They can help navigate complex rules and find suitable properties.

• Tax Implications: Seek advice from a U.S. tax professional to understand tax laws related to foreign ownership of real estate.

Related: DSCR Loans for Non-Residents: Your Essential 2025 Guide

Conclusion: A Strategic Approach to U.S. Real Estate

The U.S. real estate market continues to be a significant destination for international capital. While the most recent data shows a decrease in transactions, the underlying appeal of stability, potential for rental income, and long-term appreciation remains strong.

For international real estate investors, understanding these trends and adapting your strategy is crucial. By focusing on your investment goals, preparing for financing realities, and leveraging local expertise, you can successfully navigate the U.S. housing market and build a valuable portfolio.

My focus remains firmly on major metro markets in the Midwest, South and northeast. We’re always looking for good quality properties in decent C and B-Class neighbourhoods where we know we can rent it out, assign it to a local property manager, and let time do the heavy lifting for us.

Previous Article: Cleveland Has Second-Lowest Median Home Price in U.S.

Frequently Asked Questions (FAQs)

Q1: What was the total value of U.S. residential real estate purchased by international buyers in the latest period?

A1: Between April 2023 and March 2024, international buyers purchased $42 billion worth of U.S. residential real estate, representing 2.0% of the total existing-home sales dollar volume.

Q2: Which countries are the top international buyers of U.S. residential real estate?

A2: The top five countries of origin for international buyers of U.S. residential real estate are Canada, China, Mexico, India, and Colombia.

Q3: What U.S. states are most popular among international real estate investors?

A3: Florida remains the top destination for international buyers, followed by Texas, California, Arizona, and Georgia.

Q4: Do international buyers typically pay more for U.S. homes than domestic buyers?

A4: Yes, the median purchase price for international buyers was $475,000, which is higher than the $392,600 median price for all U.S. existing homes sold during the same period.

Q5: How do international buyers typically finance their U.S. real estate purchases?

A5: A high percentage of international buyers, especially non-residents, make all-cash purchases. In the latest period, 50% of all foreign buyers paid all-cash, compared to 28% among all U.S. existing-home buyers.

Q6: What types of properties are international investors most interested in?

A6: While detached single-family homes are the most common purchase (65%), international buyers show a higher preference for condominiums (16%) compared to overall U.S. buyers, often for vacation or rental use.