Foreign Buyers Purchase Record-Low Number of American Homes
Even foreign buyers aren’t immune to the challenges in the U.S. housing market.
International buyers purchased just 54,300 U.S. homes between April 2023 and March 2024, down 36% from the prior year, according to a National Association of Realtors (NAR) report. This was the fewest number of sales to international buyers since NAR began collecting the data in 2009.
These homebuyers spent about $42 billion on American homes—a 21.2% decrease from the previous year. They made up about 2% of all existing home sales.
“The strong U.S. dollar makes international travel cheaper for Americans but makes U.S. homes much more expensive for foreigners,” said NAR Chief Economist Lawrence Yun in a statement. “Therefore, it’s not surprising to see a pullback in U.S. home sales from foreign buyers.”
The report was based on a survey sent to Realtors who sold homes to non-U.S. citizens with permanent residences in other countries and recent immigrants and visa holders. The data only included sales of existing homes, which are homes that have previously been lived in. New construction was excluded.
International buyers tended to spend more on their homes than all buyers looking at existing homes. Their U.S. homes cost a median $475,000 versus $392,600 for all existing home sales. This was the largest amount ever recorded, likely due to the nation’s high home prices.
Nearly half of these homes were used as vacation properties or rentals, or both in some cases.
About half of foreign home purchases were all-cash sales. That was compared to just over a quarter of all existing-home sales, 28%, that were in cash.
Who is buying U.S. homes?
Which country is responsible for the most foreign home purchases? Canada.
Home shoppers hailing from Canada purchased the highest percentage of American homes, making up 13% of all foreign buyers.
They were followed by buyers from China, at 11%; Mexico, at 11%; India, at 10%; and Columbia, at 4%.
However, Chinese home shoppers dropped the most on American homes of all foreign buyers. They spent a collective $7.5 billion.
Canadian buyers spent $5.9 billion; Indian buyers spent $4.1 billion; Mexican buyers spent $2.8 billion; and Columbian buyers spent $700 million.
Where are foreign buyers purchasing U.S. homes?
The top destination in America for international home shoppers was Florida. About 20% home sales to foreign buyers were in the Sunshine State.
International buyers were also fond of Texas, which made up 13% of their sales; California, at 11%; and Arizona, at 5%. Georgia, New Jersey, New York, and North Carolina each had about 4% of sales to foreign buyers.
About three-quarters of these buyers sought out detached, single-family homes and townhomes. Nearly half purchased in suburbs.
“Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike,” Yun said in a statement.
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