The National Association of Realtors® (NAR) recently reported a significant decline in foreign investment in U.S. residential real estate. From April 2023 to March 2024, foreign buyers purchased $42 billion worth of U.S. existing homes, a decrease of 21.2% from the previous year. This period saw the lowest number of homes bought by international buyers since 2009, with only 54,300 properties purchased, marking a 36% drop.
NAR Chief Economist Lawrence Yun attributed this decline to the strong U.S. dollar, which has made American homes more expensive for foreign buyers. Overall, U.S. existing-home sales in 2023 were down 18.7% from 2022, totaling 4.09 million, the lowest level since 1995.
The NAR's 2024 International Transactions in U.S. Residential Real Estate report highlighted several key trends:
- Foreign buyers residing in the U.S. spent $22.6 billion on homes, a 3.4% decrease, making up 54% of the total foreign investment.
- International buyers living abroad purchased $19.4 billion worth of homes, a 35% decrease, representing 46% of the total.
- The average price for homes bought by foreign buyers reached a record high of $780,300, while the median price was $475,000, both significantly higher than the previous year.
- Chinese buyers had the highest average purchase price at $1.3 million, with 25% buying property in California. Overall, 18% of international buyers spent more than $1 million on properties.
Canada led the foreign buyers, accounting for 13% of U.S. home purchases, followed by China and Mexico at 11% each, and India at 10%. Florida remained the top destination, with 20% of all international purchases, followed by Texas (13%) and California (11%).
A notable trend is the preference for all-cash transactions among foreign buyers, with 50% of their purchases made without financing, compared to 28% of all U.S. homebuyers. Non-resident foreign buyers were even more likely to pay in cash, at 68%.
NAR is committed to fostering economic investment and providing resources to highlight international opportunities in U.S. real estate. They have developed a network of over 8,000 international Realtor® members and expanded globally, supporting local communities through economic development and international connections.
NAR will host a webinar, "Unlocking Global Opportunities," on July 31 at 1 p.m. Eastern, discussing the report's findings and featuring Realtors® sharing their experiences with international investments. The full report is available on the NAR website.
For more details, visit NAR's International Transactions Report.
