Foreign Interest in U.S. Housing Rises Slightly in Early 2025, With Texas Gaining Ground

The latest data from Realtor.com shows that international demand for U.S. real estate is slowly climbing. During the first quarter of 2025, foreign home shoppers made up 1.9% of traffic on Realtor.com’s platform an increase from 1.7% during the same period in 2024. While the uptick may seem modest, it highlights a steady return of global interest in the U.S. housing market.

Interestingly, this increase came despite a notable dip in activity from Canadian buyers, who have traditionally been the top source of international traffic. Their share dropped from 40.7% in Q1 2024 to 34.7% in Q1 2025, suggesting that broader trade tensions may be cooling Canadian enthusiasm for U.S. real estate.

“International buyers are still drawn to the U.S. housing market, but recent trade policies appear to be shaping where that interest is coming from,” explained Danielle Hale, Chief Economist at Realtor.com. “While iconic cities like New York and Miami continue to lead demand, we’re seeing a clear rise in interest for Texas markets, likely due to their business-friendly environment and economic strength.”

Who’s Looking and Where?

Even with a drop in share, Canadian buyers remain the most active foreign group, accounting for more than one-third of international home search traffic. Following them are buyers from the UK (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%).

Among U.S. cities, Miami leads the way, capturing 8.7% of international traffic no surprise given its global appeal, strong real estate market, and vibrant cultural mix. Other top destinations include New York, Los Angeles, and Orlando.

Drilling down further, Canadians were especially active in specific hotspots. In Naples, FL, they made up nearly 60% of international searches, with similar levels of interest in Cape Coral, Phoenix, North Port, and Riverside, CA. These sunbelt cities continue to attract attention for their warmer climate and lifestyle benefits.

What About Mexican Buyers?

Unlike buyers from other countries, Mexican shoppers tend to search for homes closer to the U.S.-Mexico border. Cities like San Diego, El Paso, San Antonio, Houston, and Dallas topped the list of destinations. Realtor.com notes that this pattern is shaped by cultural connections, proximity to family, and ease of travel and business—all of which make these locations practical for long-term living or investment.

While Mexico’s share of foreign home search activity dipped slightly from 5.8% to 5.4% interest remained relatively steady, especially in border states. Despite tariffs affecting trade between the two countries, the decline was much smaller than that seen among Canadian buyers.

Spotlight on Texas

One of the most notable shifts in the Q1 2025 report is the surge in international interest in Texas real estate. Austin and San Antonio broke into the top 20 most-searched metros, while Houston climbed to the sixth spot overall and Dallas rose several positions compared to last year.

What’s behind this trend? Many experts point to Texas’s growing reputation as a business and tech hub, combined with its affordable cost of living, no state income tax, and steady job growth. Over the last few years, major companies have either relocated to Texas or expanded their footprint there, drawing both domestic and international attention to its housing market.

Bottom Line:

International interest in U.S. housing is growing again slowly but surely. While traditional hotspots like Miami and Los Angeles still draw global attention, Texas is emerging as a serious contender, thanks to its economic resilience and business-friendly appeal.