Key Takeaways:

• Foreign buyers spent $56 billion on U.S. homes through March 2025.
• That’s a 33% increase from the year before.
• American homebuyers are pulling back due to high mortgage rates.
• Interest from global investors continues to grow, despite economic uncertainty.

Foreign Buyers Boost U.S. Housing Market

While many Americans are stepping away from buying homes due to high prices and rising mortgage rates, there’s one group that isn’t holding back—foreign buyers. In fact, they’re diving deeper into the U.S. housing market than ever before.

According to recent data, sales of existing homes to foreign buyers totaled $56 billion in the year through March 2025. That’s a huge jump—about 33% more than the previous year. So, why are people from other countries so eager to buy homes in the U.S., even while Americans seem to be waiting for better days?

American Buyers Step Back

Over the last eight months, home sales in the United States have dropped in six of those months. Why? Mostly because of rising mortgage rates. Higher interest rates mean buyers have to pay more each month for the same home. That makes many people think twice before signing a mortgage.

On top of that, home prices are still high across the country. Many Americans are hoping prices might come down. They’re choosing to wait instead of buying now.

Enter the Foreign Buyers

But while locals are pressing pause, people from outside the U.S. are pressing play. Foreign buyers, especially those with cash in hand, aren’t affected by high mortgage rates in the same way.

Many of these buyers are paying in all cash, meaning they don’t need a loan at all. This gives them an edge in beating out local bidders who often need financing. It also means they don’t care as much about mortgage rates.

Why Foreign Buyers Like U.S. Real Estate

There are several reasons why the U.S. housing market is so attractive to international buyers:

• Stable Investment: Even during economic uncertainty, U.S. real estate is seen as a safe and solid place to put money.
• Currency Advantage: In some cases, foreign currency compares well to the dollar, helping make U.S. homes seem like a bargain.
• Education & Lifestyle: In cities with world-famous colleges or appealing lifestyles, many wealthy international families buy homes for their children or as vacation spots.
• Long-term Strategy: Some foreign buyers are making long-term bets that U.S. home values will grow over time.

In many cases, these buyers aren’t just individuals looking for a second home—they’re also investors and companies hoping to rent out the properties for profit.

Where Are They Buying?

Some cities are getting more attention from international buyers than others. These tend to be large, international cities with job opportunities, universities, or warm climates. Popular spots include:

• Miami
• Los Angeles
• New York City
• San Francisco
• Houston

In these cities, foreign investment helps keep home demand high—even when local interest cools down.

How These Buyers Impact Local Markets

When foreign buyers flood a market, it can make homes less available for local families. They often pay in full and sometimes offer more than the asking price. That pushes prices higher and makes it harder for first-time buyers to compete.

However, these purchases can also keep the real estate market moving, even during slow stretches. This is especially helpful to sellers who might otherwise struggle to find buyers in a sluggish market.

Cash Is Still King

One major reason foreign buyers are doing so well right now is their ability to pay cash. Paying cash for a home avoids the need for a mortgage. Since interest rates in the U.S. are at some of the highest levels in over 20 years, this matters a lot.

Mortgages today are topping 7% in many cases, which adds hundreds or even thousands of dollars to a buyer’s monthly payment. Foreign buyers avoid this altogether with cash deals. Sellers love this too—it makes deals faster and less likely to fall through.

A Market of Two Worlds

Right now, the U.S. housing market feels like it’s being pulled in two different directions. On one side, you have Americans sitting on the sidelines, dealing with rising costs and tight budgets. On the other side are wealthy foreign buyers, many unphased by rate hikes, looking to take advantage of discount prices in select cities.

This split has created unusual trends. For example, in some neighborhoods, bidding wars are still happening. In others, homes sit on the market for months. It all depends on the location—and who’s shopping.

Long-Term Effects to Watch

If foreign buyers continue snatching up U.S. homes, it could make affordability worse for everyday Americans. Some cities could begin seeing more homes turned into investments or vacation rentals. This might mean fewer permanent residents in some areas and less housing stock overall.

On the other hand, foreign investment brings money into the local economy. Construction jobs, home services, insurance, and taxes all get a boost when homes change hands—even if the owner lives thousands of miles away.

Policies Could Change

Some U.S. states are starting to take notice of the foreign buying trend. Texas and Florida, for instance, have proposed or passed laws at different points to limit foreign ownership of certain properties, especially near military bases or strategic areas.

If these trends continue, we may see more rules in play. Governments want to balance attracting global investment with protecting affordable housing for their citizens.

Final Thoughts

Right now, the U.S. housing market is sending mixed signals. It’s a tough time for many American buyers, especially first-time ones. But for foreign investors with cash and a long-term outlook, the current dip looks like an opportunity.

Whether this trend grows or fades will depend on many things—from interest rates and laws to international economic shifts. One thing is clear: for now, foreign buyers are playing a bigger role in the U.S. housing market than they have in years.

FAQs

Why are foreign buyers interested in U.S. homes?

They see U.S. real estate as a safe investment. Plus, they like the strong legal rules, quality homes, and ability to pay in cash.

Do foreign buyers affect local prices?

Yes. Foreign buyers can push home prices up when they offer more money, often paying in cash and quickly closing deals.

Are most foreign buyers paying in cash?

Many are. This helps them avoid high mortgage rates and win bidding wars against local buyers needing loans.

Where are foreign buyers shopping most?

They’re looking at cities like Miami, Los Angeles, New York, and Houston—places with universities, warm weather, or job growth.