International buyers have significantly reduced their purchases of U.S. homes in the past year, yet they are paying more for residential than ever before.
From April 2023 to March 2024, foreign buyers purchased $42 billion in U.S. residential properties, marking a 21.
2 percent decline from the previous year, according to the National Association of Realtors (NAR). The approximately 54,300 existing homes sold to international buyers represent the lowest 12-month total since NAR began tracking such transactions in 2009. Despite a decrease in the number of properties purchased, the average and median -purchase prices paid by foreign buyers reached record highs.
The NAR report defines international or foreign homebuyers as non-U.S. citizens with permanent residences outside the U.
S. or non-citizens who are recent immigrants or non-immigrant visa holders residing in the U.S.
for over six months. "Homes are priced at points higher than [international buyers] are willing to pay, especially since for a lot of them, it's not their primary residence," Matt Christopherson, the NAR's director of business and consumer research, told Courier."They're also not finding homes available even if they're able and willing to pay.
" has reached out to a representative of the NAR via their website for comment. Foreign buyers face additional financial burdens due to the strong U.S.
dollar. As of March, about 9.4 percent more Chinese yuan, 3.
7 percent more Euros, and 3.6 percent more Canadian dollars were needed to purchase a U.S.
dollar compared to a year ago. Conversely, 4.6 percent fewer Mexican pesos were needed.
remains the top destination for foreign buyers, accounting for 20 percent of all international home purchases, according to the NAR report. The state's appeal includes its attractive vacation , investment properties, and luxury real estate. Most foreign buyers in Florida come from Latin America (35 percent) and Canada (27 percent).
is the second most popular state for foreign buyers, with a 13 percent share. The state's affordability and strong job market make it particularly appealing. Texas is especially popular among Mexican buyers, who represent 49 percent of the state's foreign buyer market, and Indian buyers, who increasingly seek primary residences there.
ranks third, attracting 11 percent of foreign buyers. The state is a top destination for Asian buyers, particularly from China, who account for a significant portion of the foreign market. California's renowned universities, temperate climate, and direct international flights enhance its appeal.
Arizona and Georgia round out the top five states, with Arizona attracting 5 percent and Georgia 4 percent of foreign buyers. Arizona's market is dominated by Canadian buyers, while Georgia's foreign buyers are more diverse, hailing from Latin America, Asia, Africa, and Europe, according to the NAR analysis. Asian buyers remain the largest group of foreign buyers, with a 36 percent market share, according to the NAR data.
They are followed by Latin American buyers at 29 percent, European buyers at 17 percent, and Canadian buyers at 13 percent. Notably, Chinese buyers are the largest group in terms of dollar volume, spending $7.5 billion on U.
S. properties, despite a significant drop from $13.6 billion the previous year, the NAR said.
Indian buyers also represent a significant portion of the market, purchasing homes primarily in Florida and Texas. Indian buyers often look for primary residences, especially detached single-family homes. This trend is driven by affordability and the presence of strong job markets in these states.
Canadian buyers, primarily seeking vacation homes, remain highly active in the U.S. market.
They had the second-highest average purchase price at $834,000, as per the NAR, and they primarily bought in resort areas with higher price tags. The decline in foreign investment is attributed to several factors, including high home prices, low inventory, and a strong U.S.
dollar. Additionally, geopolitical tensions, global economic shifts, and tighter U.S.
immigration policies have made foreign buyers more cautious. "It's like a perfect storm," Greg Clement, CEO of real-estate software company Realeflow, told . Despite these challenges, the U.
S. real estate market remains attractive to international buyers due to its stability and potential for long-term gains, according to Shelly Cofini, chief strategy officer of Redy, a platform connecting buyers to realtors. She told : "The U.
S. real estate market has long been a beacon for international investors." Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground..
