International Buyers Still Favor U.S. Homes, But Demand Begins to Cool
International interest in the U.S. housing market remains strong but is showing early signs of cooling, according to new data from Realtor.com. During the third quarter of 2025, foreign shoppers accounted for 1.5% of all online home search traffic across the country a modest dip from 1.6% one year ago, yet still above the 1.2% level seen before the pandemic in late 2019.
The data reveals a subtle but notable shift: while international buyers continue to view the U.S. as a safe and desirable real estate market, higher prices, a stronger U.S. dollar, and shifting global economic conditions are beginning to temper demand, especially in luxury markets.
Miami Still Tops the List for International Buyers
Despite a slight pullback overall, Miami retained its long-standing crown as the most searched city by international home shoppers, attracting 8.4% of all foreign online traffic. The New York metro area followed at 5.6%, with Los Angeles close behind at 4.8%.
Other top-performing metros included Orlando and Dallas, each garnering 2.7% of international search activity. These metros continue to appeal to a broad mix of overseas buyers ranging from investors seeking rental opportunities to professionals relocating for work and retirees pursuing warm climates and lifestyle amenities.
“Miami continues to serve as a global gateway for international buyers,” said a senior Realtor.com analyst. “Its mix of luxury properties, strong rental potential, and cultural diversity keeps it at the top of the list, even as global demand shows mild cooling.”
Key Highlights from the Q3 2025 Report
- Foreign shoppers accounted for 1.5% of total online home search traffic, slightly down from last year’s 1.6%.
- Top three markets for international searches: Miami (8.4%), New York (5.6%), and Los Angeles (4.8%).
- International buyers viewed homes that were 29.8% more expensive than those viewed by domestic buyers down from a 34.2% difference the year prior.
- Canada remained the leading source of international housing interest, though its share slipped from 36.6% in 2024 to 32.1% in 2025.
Narrowing Price Gap Between Domestic and International Buyers
One of the report’s most striking trends is the narrowing price gap between properties viewed by international and domestic shoppers. In the third quarter, international buyers viewed homes that were 29.8% more expensive than those viewed by U.S. shoppers down from 34.2% a year earlier.
This shift reflects a faster decline in luxury home searches among international audiences, with median viewed prices falling 5.2% year-over-year, compared with just 1.7% among domestic buyers. Economists attribute the trend to currency fluctuations, rising global interest rates, and economic uncertainty in key markets like Canada, the U.K., and China.
“International buyers are still active, but they’re becoming more price-conscious,” said one housing economist. “Luxury demand has softened, especially in high-cost metros where affordability and tax considerations are now bigger factors.”
Los Angeles, New York, and San Francisco Lead in Price Disparities
Among the 20 most popular metros for international buyers, Los Angeles stood out with the largest price gap foreign shoppers viewed homes priced 173% higher than those favored by local buyers. New York followed with a 49% gap, while San Francisco and Boston recorded disparities of 33% and 24%, respectively.
Interestingly, Austin, Texas ranked fifth for price differentials, but for very different reasons. The city’s growing reputation as a tech and innovation hub continues to attract global professionals and investors seeking comparative affordability and long-term growth potential.
Top 10 U.S. Markets for International Home Shoppers
| Rank | Metro Area | Traffic Share | Median Viewed (Intl.) | Median Viewed (Domestic) | Price Gap (%) |
|---|---|---|---|---|---|
| 1 | Miami–Fort Lauderdale–West Palm Beach, FL | 8.4% | $546,633 | $566,167 | -3.5% |
| 2 | New York–Newark–Jersey City, NY–NJ | 5.6% | $1,029,333 | $690,000 | 49.2% |
| 3 | Los Angeles–Long Beach–Anaheim, CA | 4.8% | $3,276,317 | $1,197,667 | 173.6% |
| 4 | Orlando–Kissimmee–Sanford, FL | 2.7% | $454,967 | $454,633 | 0.1% |
| 5 | Dallas–Fort Worth–Arlington, TX | 2.7% | $543,667 | $484,933 | 12.1% |
| 6 | Houston–Pasadena–The Woodlands, TX | 2.3% | $405,000 | $362,667 | 11.7% |
| 7 | Tampa–St. Petersburg–Clearwater, FL | 2.3% | $414,467 | $417,497 | -0.7% |
| 8 | Chicago–Naperville–Elgin, IL–IN | 1.9% | $431,300 | $392,967 | 9.8% |
| 9 | Phoenix–Mesa–Chandler, AZ | 1.9% | $588,000 | $540,330 | 8.8% |
| 10 | Atlanta–Sandy Springs–Roswell, GA | 1.5% | $481,666 | $448,300 | 7.4% |
Canada Still Leads — But Its Share Is Shrinking
Canadian buyers continue to represent the largest share of international home search traffic, accounting for 32.1% of foreign online activity in 2025. However, this marks a notable decline from 36.6% in 2024, reflecting the impact of currency fluctuations, tighter capital controls, and economic uncertainty at home.
The U.K., Mexico, Germany, and Australia rounded out the top five countries sending the most traffic to U.S. listings. Canadian shoppers, in particular, remain drawn to Florida metros such as Cape Coral, North Port, and Tampa, though their engagement has fallen slightly year-over-year.
“The U.S. remains a global benchmark for real estate stability,” said a Realtor.com analyst. “But foreign buyers are weighing the costs more carefully especially with shifting exchange rates and evolving visa policies.”
Policy Changes Could Shape Future Demand
Looking ahead, the outlook for international home demand appears mixed. New federal programs designed to attract high-net-worth investors and business owners could bolster luxury property sales, particularly in gateway cities like New York, Miami, and Los Angeles.
Conversely, stricter visa and work permit regulations could cool demand in technology and innovation hubs such as Austin, Seattle, and San Francisco, where many international buyers are tied to employment-based relocations.
“International demand for U.S. real estate isn’t disappearing it’s evolving,” experts say. “Buyers are becoming more selective, focusing on value, economic stability, and lifestyle fit rather than pure investment potential.”
The Bottom Line
Even as global demand moderates, the United States remains a top destination for international real estate investment thanks to its strong economy, stable property laws, and high quality of life. Markets like Miami, New York, and Los Angeles continue to lead the pack, while emerging metros such as Dallas, Orlando, and Austin are rising in popularity among international professionals and investors seeking growth and affordability.
The next year will likely bring a more balanced international housing market, marked by fewer speculative luxury buyers but continued steady demand from those seeking long-term stability and opportunity. For direct financing consultations or mortgage options for you visit 👉 Nadlan Capital Group.
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