International Interest in U.S. Real Estate Rises in Early 2025

Interest from international homebuyers in the U.S. housing market has seen a slight increase at the start of 2025, according to recent data from Realtor.com. In the first quarter, international visitors accounted for 1.9% of site traffic, up from 1.7% during the same period last year. While the increase is modest, it reflects renewed attention from foreign buyers as global economic conditions shift and U.S. markets evolve.

Surprisingly, even as overall international interest ticked up, the share of traffic from Canadian users the top source of foreign housing inquiries actually fell. Canadian visitors made up 34.7% of international traffic in Q1 2025, a noticeable drop from 40.7% in Q1 2024.

“International demand is gaining ground again,” said Danielle Hale, Chief Economist at Realtor.com. “But the dip in Canadian interest shows that trade policies and broader economic conditions can quickly influence cross-border real estate behavior. What’s really interesting is how international attention is expanding beyond the typical coastal hotspots and into more central markets like Texas.”

Top Countries Driving Interest

Despite their decline, Canadian home shoppers still dominate international web traffic, followed by users from the United Kingdom (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%). Notably, Miami continues to attract the most international attention, drawing 8.7% of all foreign interest in U.S. listings in Q1 2025. Other popular cities include New York, Los Angeles, and Orlando.

Several Florida cities remained popular with Canadian buyers, with Naples seeing 59.6% of its international housing demand coming from Canada. Other high-ranking Florida metros included Cape Coral (59.1%), North Port (56.4%), and Riverside, California (52.2%).

Regional Shifts in Buyer Behavior

Meanwhile, Mexican interest in the U.S. housing market though slightly reduced from last year—remains focused on cities along the U.S.-Mexico border. Places like San Diego, El Paso, Houston, and San Antonio continue to be top choices, largely due to their proximity to Mexico and established cultural and business connections.

“These areas offer practical appeal,” said Hale. “Many Mexican buyers prefer to invest where travel is easy, cultural ties are strong, and family or business networks already exist. That familiarity provides a sense of security and convenience, especially for those planning extended stays or relocations.”

The Texas Surge

One of the most notable trends in early 2025 is the growing international interest in Texas. San Antonio and Austin entered the top 20 list for foreign buyer activity for the first time in years. Meanwhile, Houston ranked sixth and Dallas climbed three spots compared to the previous year.

Texas’s rise in popularity among international buyers may not come as a surprise. The state’s low cost of living, business-friendly regulations, and absence of state income tax continue to draw both domestic and foreign interest. Over the past few years, numerous large corporations have relocated or expanded their operations in Texas, bringing with them an influx of jobs and new residents.

A Changing Landscape

The increase in foreign interest, particularly in previously under-the-radar markets like San Antonio and Austin, points to a shift in how international buyers view U.S. housing opportunities. While the coasts still command significant attention, more affordable inland markets are gaining ground.

This evolving trend could offer U.S. sellers new opportunities, especially in regions like Texas where economic conditions remain favorable and housing remains relatively accessible. With global factors from interest rates to trade policies continuing to influence real estate flows, international demand may play a larger role in shaping regional housing dynamics in the years ahead. For more information about financing visit Nadlan Capital Group.