United States Real Estate Market Attracts $56 Billion from International Purchasers According to Recent Study
**Foreign Investment in U.S. Real Estate Hits Record High**
In a significant development, international buyers have invested a staggering $56 billion in U.S. real estate over the past year, marking a 33.2% increase from the previous year, according to the National Association of Realtors' (NAR) 2025 International Transactions Report.
The report reveals that foreign buyers acquired 78,100 existing homes, a 44% jump from the 54,300 homes purchased the year before—the first significant increase since 2017. The median purchase price paid by foreign buyers also reached a record high of $494,400, up 4.1% from the previous year.
One of the key findings of the report is the high prevalence of cash purchases, with nearly half (47%) of international buyers paying entirely in cash. This reflects both the financial flexibility of these buyers and a response to high U.S. mortgage rates and tight credit conditions.
More than half (56%) of foreign buyers were already residing in the U.S. as recent immigrants or visa holders, driving $26.9 billion in purchases, while 44% lived abroad, accounting for $29.1 billion. The report also shows that foreign investors tended to target higher-end properties, further inflating overall price averages.
China emerged as the leading country of origin, with 15% of foreign purchases, followed by Canada, Mexico, India, and the U.K. Florida remained the most popular destination for international buyers, drawing more than one in five buyers, while California, Texas, New York, and Arizona also featured prominently.
Despite global uncertainties and recent U.S. tariff policies, the U.S. continues to attract international capital due to legal protections, economic stability, and long-term growth. However, the long-term trajectory of foreign investment in U.S. real estate remains uncertain, as the report data was collected before new U.S. tariff policies were announced in April 2025.
In summary, the 2025 NAR report signals a robust rebound in foreign investment in U.S. residential real estate, driven by cash purchases, a focus on premium properties, and strong demand from buyers in China and Canada. While the overall economy of the U.S. remains relatively stable compared to some international markets, the long-term trajectory of foreign investment remains uncertain amid evolving economic and policy conditions.
This article was written by Abby Montanez, a staff writer at our website.
[1] National Association of Realtors, 2025 International Transactions Report [2] National Association of Realtors, 2024 International Transactions Report [3] National Association of Realtors, 2023 International Transactions Report [4] National Association of Realtors, 2022 International Transactions Report
- The surge in foreign investment in U.S. real estate, reaching a record high of $56 billion, indicates a significant growth in financial activity.
- The high prevalence of cash purchases among international buyers, almost half of them, highlights the role of finance in driving this property market boom.
