Foreign buyers sharply reduced their activity in the U.S. housing market over the past year, spending $45.3 billion on existing homes as high prices, limited inventory and weaker international travel weighed on demand.
The total value of homes purchased by international buyers between April 2025 and March 2026 fell 19.1% from the previous 12-month period. Meanwhile, the number of properties purchased declined 14% to 67,100, according to the National Association of Realtors’ 2026 International Transactions in U.S. Residential Real Estate report. The transaction total was the second-lowest recorded since NAR began tracking international purchases in 2009.
The decline occurred even as the U.S. dollar weakened somewhat against several foreign currencies. A weaker dollar can give international buyers more purchasing power, but that advantage was not enough to encourage more buyers to enter the U.S. housing market.
“The decline in foreign home buyer activity mirrors the decline in international visitors and tourists to the United States,” NAR Chief Economist Lawrence Yun said. He added that even the weaker dollar, which gives foreign buyers more purchasing power, did not lead to stronger activity.
The pullback remains limited when compared with the overall U.S. housing market. International buyers represented about 1.7% of existing-home purchases during the period. Their median purchase price was $465,000, which was higher than the median price paid by domestic existing-home buyers.
Canada Reclaims the Top Spot
Canada returned to the top position among foreign buyers, accounting for 16% of international purchases. That was up from 14% a year earlier. Canadian buyers purchased approximately 10,700 U.S. homes with a combined value of $5.2 billion.
Mexico ranked second, representing 14% of foreign purchases. Buyers from Mexico acquired roughly 9,400 properties valued at about $5 billion during the period.
China ranked third by the number of transactions, accounting for 11% of purchases. However, Chinese buyers remained the largest source of foreign-buyer spending, purchasing approximately 7,400 homes worth $7.6 billion. That translates into an average purchase price of around $1 million per property. NAR’s figures include buyers from mainland China, Hong Kong and Taiwan.
India accounted for 9% of international purchases, with roughly 6,000 homes valued at $3.7 billion. The United Kingdom represented 4% of purchases, with about 2,700 transactions totaling $1.2 billion.
The difference between transaction volume and total spending highlights how international demand remains concentrated in expensive housing markets. Chinese buyers, in particular, purchased higher-priced properties, with California continuing to attract a significant share of that demand.
Florida Remains the Leading Destination
Florida continued to rank as the most popular destination for international buyers, accounting for 20% of all foreign home purchases. California followed closely with 19%, while Texas represented 12%. New Jersey and Georgia each accounted for 4%.
Florida’s warm climate, beaches and large international population have made the state a long-standing favorite among overseas buyers. California continues to attract high-income international purchasers, particularly from Asia, while Texas remains a major destination for buyers from Mexico and other international markets.
According to Yun, Canadian and Mexican buyers led the market in the number of homes purchased. Chinese buyers, however, ranked first in total dollar volume because they generally purchased more expensive properties.
Most International Buyers Already Live in the U.S.
The latest NAR data also shows that foreign buyers are not necessarily living overseas. A significant share of international purchasers already reside in the United States.
Foreign buyers who were recent immigrants or held visas that allowed them to live in the country accounted for 37,600 purchases. That represented 56% of all international transactions, with those purchases totaling $21.8 billion.
Buyers who lived outside the United States accounted for the remaining 29,500 transactions, or 44% of total foreign purchases. Their combined spending reached $23.5 billion.
NAR defines international clients as either non-U.S. citizens whose permanent residence is outside the country or non-U.S. citizens who are recent immigrants or qualifying non-immigrant visa holders living in the United States.
This distinction is important when evaluating the decline in foreign purchases. The drop in activity reflects weaker demand from buyers living abroad as well as international residents who are already participating in the U.S. housing market.
Cash Remains Popular With Foreign Buyers
International purchasers were also much more likely to buy homes with cash than the broader U.S. buyer population.
Approximately 48% of foreign buyers paid entirely in cash. By comparison, only 28% of all existing-home buyers used cash for their purchases.
That preference can give international buyers an advantage in competitive markets. Cash transactions can reduce financing risks, simplify negotiations and allow buyers to close deals faster, particularly when purchasing expensive properties.
For the broader U.S. housing market, however, the latest figures show continued weakness in one of its most internationally connected segments. Foreign purchases declined as international travel to the United States weakened, while high home prices and limited inventory continued to challenge buyers.
The combination of expensive housing and a lack of available properties has made it harder for many international buyers to enter the market. Even though currency movements offered some buyers greater purchasing power, that benefit did not offset the wider affordability and supply challenges.
For now, the weaker dollar has not been enough to reverse the decline. The latest data suggest that foreign demand for U.S. residential real estate remains subdued, with the market likely to depend on changes in affordability, inventory and international travel before overseas activity begins to recover.
