International Buyers Still Favor U S Homes, But Demand Begins to Cool

International buyers are still drawn to the U.S. housing market, but new data from Realtor.com shows demand is beginning to cool slightly after years of steady strength. In the third quarter of 2025, foreign shoppers accounted for 1.5% of all U.S. home search traffic, down modestly from 1.6% a year earlier, though still above pre-pandemic levels. Experts say the shift reflects higher home prices, a stronger dollar, and global economic uncertainty—factors making even America’s top real estate markets feel more expensive to overseas buyers.
Miami continues to dominate as the most sought-after metro, capturing 8.4% of all foreign search activity. It was followed by New York (5.6%), Los Angeles (4.8%), Orlando (2.7%), and Dallas (2.7%). Analysts note Miami’s unique mix of luxury living, rental potential, and cultural appeal keeps it at the top, even as luxury interest cools overall.
One of the report’s standout findings is the narrowing price gap between homes viewed by domestic and international shoppers. On average, foreign buyers looked at listings 29.8% more expensive than U.S. shoppers did—a drop from 34.2% last year—as global buyers shift focus from ultra-luxury properties toward more value-oriented investments.
Among the most notable disparities, Los Angeles leads with foreign buyers viewing homes 173% pricier than locals, followed by New York (49%) and San Francisco (33%). Conversely, cities like Orlando, Tampa, and Dallas show minimal differences, signaling rising appeal among buyers seeking affordability and growth potential.
Canada remains the largest source of international housing interest, making up 32.1% of foreign traffic, though that’s down from 36.6% in 2024. Buyers from the U.K., Mexico, Germany, and Australia follow closely, with many drawn to warm-weather metros and strong rental markets.
Looking ahead, analysts say U.S. real estate remains a global safe haven, but demand is shifting. New visa and investment programs could bolster activity in major coastal cities, while tighter immigration policies may temper interest in tech hubs like Austin and Seattle.
Even with the slowdown, the U.S. continues to stand out as a stable, opportunity-rich housing market—especially for international buyers prioritizing long-term value over short-term speculation.
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