Residential Purchases Fall to Second-Lowest Level on Record
Foreign buyers sharply reduced their purchases of U.S. existing homes over the past year, spending $45.3 billion as high prices, limited inventory and a broader decline in international travel weighed on demand.
The total value of homes purchased by international buyers from April 2025 through March 2026 fell 19.1% from the previous 12-month period, while the number of properties purchased dropped 14% to 67,100, according to the National Association of Realtor’ 2026 International Transactions in U.S. Residential Real Estate report. The transaction count was the second-lowest since NAR began tracking the market in 2009.
The retreat came even as the dollar weakened somewhat against foreign currencies, theoretically giving overseas buyers greater purchasing power.
“The decline in foreign home buyer activity mirrors the decline in international visitors and tourists to the United States,” NAR Chief Economist Lawrence Yun said. “Even a slightly weaker U.S. dollar over the past year, which provides more purchasing power for foreigners, did not induce more activity.”
The pullback was concentrated in a relatively small segment of the overall U.S. housing market. International buyers accounted for about 1.7% of existing-home purchases during the period, according to NAR data reported alongside the survey results. Their median purchase price was $465,000, above the median price paid by all existing-home buyers.
Canada Reclaims Top Spot
Canada returned as the largest source of foreign homebuyers, accounting for 16% of purchases, up from 14% a year earlier. Canadian buyers acquired about 10,700 homes worth $5.2 billion.
Mexico ranked second, representing 14% of purchases, or roughly 9,400 homes valued at $5 billion.
China fell to third place by transaction count, accounting for 11% of purchases, but remained the largest source of foreign-buyer spending. Chinese buyers purchased about 7,400 homes worth $7.6 billion, reflecting an average purchase price of roughly $1 million. NAR’s figures encompass buyers from mainland China, Hong Kong and Taiwan.
India accounted for 9% of purchases, with about 6,000 homes worth $3.7 billion, while the United Kingdom represented 4%, with roughly 2,700 purchases totaling $1.2 billion.
The divergence between transaction counts and spending underscores how heavily foreign demand is concentrated in higher-priced markets. Chinese buyers, in particular, purchased more expensive properties, with California a major destination.
Florida Remains the Top Destination
Florida continued to dominate as the preferred destination for international buyers, accounting for 20% of all foreign purchases. California followed at 19%, while Texas captured 12%. New Jersey and Georgia each represented 4%.
Florida’s combination of warm weather, beaches and a large established international population has long made the state a magnet for overseas purchasers. California’s position was supported by demand from higher-income Asian buyers, while Texas remained a major destination for buyers from Mexico and other international markets.
Yun said Canadian and Mexican buyers led the market in the number of homes purchased, while Chinese buyers led in dollar volume because of their higher-priced acquisitions.
Most Foreign Buyers Were Already Living in the U.S.
The NAR data also shows that international demand is not synonymous with overseas demand.
Foreign buyers who were recent immigrants or held visas allowing them to live in the U.S. accounted for 37,600 purchases, or 56% of all foreign-buyer transactions. Those purchases totaled $21.8 billion.
Buyers residing abroad accounted for the remaining 29,500 purchases, or 44%, with $23.5 billion in spending.
NAR defines international clients as either non-U.S. citizens whose permanent residence is outside the country or non-U.S. citizens who are recent immigrants or qualifying non-immigrant visa holders residing in the United States.
The distinction is important because the headline decline in foreign purchases partly reflects weaker activity among both overseas buyers and international residents already participating in the U.S. housing market.
Cash Still Dominates
Foreign buyers were also considerably more likely to pay cash than the broader U.S. buyer pool.
About 48% of international purchasers paid entirely in cash, compared with 28% of all existing-home buyers.
That purchasing profile gives foreign buyers a potential advantage in competitive transactions, particularly in high-priced markets where avoiding mortgage financing can simplify and accelerate a purchase.
For the U.S. housing market overall, however, the latest numbers point to a continued contraction in one of its most internationally exposed segments. The decline in foreign purchases comes as international travel to the U.S. has weakened and housing affordability remains strained by elevated prices and limited inventory.
For now, a weaker dollar has not been enough to reverse that trend.
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