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International interest in American real estate is up for the first time in eight years. According to the National Association of Realtors (NAR), the number of properties purchased by foreigners went up 44% from April 2024 to March 2025, even as high mortgage rates and increasing housing prices have kept some Americans on the sidelines. The dollar volume of these sales hit $56 billion, up 33% from the same period a year ago.
The issues that are keeping domestic buyers back don’t seem to be affecting foreign buyers. So what does this say about the market for U.S. investors?
Why Foreigners Are Snapping Up American Homes
There are several reasons why foreigners might invest in the U.S. Often, it’s because they see the U.S. as a stable place to invest compared to their home countries, Yuval Golan, CEO and founder of real estate financing platform Waltz, said in a conversation with BiggerPockets.
Golan’s company helps foreign investors purchase U.S. homes. In the first two quarters of 2025, 59% of the deals it closed were to refinance. This means many foreigners are looking to buy another property, said Golan.
“Usually, when people want to sell their properties, they don’t refinance,” Golan said.
According to the NAR, most buyers came from China in the April 2024 to March 2025 period, at 15% of foreign purchases, followed by Canada at 14% and Mexico at 8%. India and the U.K. trail behind at 6% and 4%, according to data from the NAR.
For Waltz, interest comes from countries like Israel, Mexico, Canada, and the UK, Golan said. Many buy property for a vacation home or for their children to live in when they study in the U.S. Others might buy properties as an investment.
Most of the time, they are buying in markets that are already tight in supply and popular with domestic buyers as well, such as Florida, California, Texas, Arizona, and New York.
Casey Gaddy, a senior agent at Keller Williams Realty, said in a conversation with BiggerPockets that while most foreign investments involve luxury residential properties, there is interest in high-rise condos and single-family homes.
“Some are investing as a hedge and means to park cash in what they consider a stable economy; others are purchasing secondary homes, while others are creating long-term rental pipelines for passive income,” Gaddy said.
What This Means for American Investors
While sales to non-U.S. buyers only account for 2.5% of the existing market, according to the NAR data, it can increase competition for Americans, wrote George Ellison, cofounder of Propbee and former real estate executive at Bank of America, in an email to BiggerPockets. “That can make it harder for U.S. buyers to secure homes, since foreign buyers often come in with cash offers and fewer contingencies,” he said.
This can put a strain on already tight markets, said Gaddy. “We all know the reality of tight inventory in many cities, and increasing demand from overseas can knock out first-time homebuyers,” he said.
But overall, experts see the interest in American real estate as a good thing. “If foreigners stop buying U.S. real estate, it means people don’t trust [the U.S. dollar], and it harms the economy. When foreigners buy in America, the USD retains its dominance,” said Golan.
If foreign investors are still buying up property despite higher interest rates, it shows that “the fundamentals are strong,” said Ellison.
“International investors see U.S. housing as one of the most reliable places to put their money. It reflects confidence in long-term appreciation and rental demand, even if in the short term, it highlights affordability gaps for many Americans,” he added.
Final Thoughts
While an increase in foreign purchases might cause competition in some areas squeezed by supply, the underlying reason for the increase is a good one for real estate investors. All this foreign investment indicates that the U.S. housing market is still strong.
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