Foreign investors are flocking to the US housing market, buying $56 billion worth of real estate

International interest in American real estate has increased again for the first time in eight years. According to the National Association of Realtors (NAR), the number of properties purchased by foreigners went up 44% from April 2024 to March 2025, even if high mortgage interest rates and increasing Home prices have kept some Americans on the sidelines. The dollar volume of these sales hit $56 billion, upwards 33% compared to the same period a year ago.

The problems that are keep domestic buyers back not corpses influence foreign buyers. So what does this participation about the market for American investors?

Why Foreigners Are Seizing American Homes

There are several reasons why foreigners might invest in the US. Often that’s because they see the U.S. as a stable place to invest compared to their home country, says Yuval Golan, CEO and founder of real estate financing platform Waltz. said in a conversation with BiggerPockets.

Golan’s company helps foreign investors purchase American houses. In the first two quarters of 2025, 59% of deals were closed refinance. This means many foreigners are looking for another property, Golan said.

“When people want to sell their properties, they usually don’t refinance,” Golan said.

According to the NAR, most buyers came from China in from April 2024 to March 2025 period, bee 15% of foreign purchases, followed by Canada with 14% and Mexico with 8%. According to NAR data, India and Great Britain lag behind with 6% and 4%.

For Waltz, the most interest comes from Israel and Canada, Golan said. Many buy property for a holiday home or for their children to live in while they study in the US. Others might buy real estate as an investmentment.

They usually buy in markets where supply is already tight and popular with domestic buyers alsosuch as Florida, California, Texas, Arizona and New York.

Casey Gaddy, a senior agent at Keller Williams Realty, said in a conversation with BiggerPockets that although the most foreign the investments concern luxury homes, there is interest in high-rise apartments and single-family homes.

“Some are investing as a hedge and as a means to park money in what they see as a stable economy; others are buying secondary properties, while others are creating long-term rental pipelines for passive incomeGaddy said.

What this means for US investors

While selling to non-US buyers only represent 2.5% of the existing market, said the NAR data, It could increase competition for Americans, George Ellison, co-founder of Propbee and former real estate executive at Bank of America, wrote in an email to BiggerPockets. “That could make it harder for U.S. buyers to secure homes, as foreign buyers often come in with cash offers and fewer contingencies,” he said.

This could put pressure on already tight markets, Gaddy said. “We all know the reality of tight inventories in many cities, and increasing demand from abroad could turn off first-time homebuyers,” he said.

But In short, experts to see the interest in American real estate as a good thing. “If foreigners stop buying American real estate, it means people don’t trust it [the U.S. dollar]and it hurts the economy. If foreigners buy in America, the USD will maintain its dominance,” Golan said.

If foreign investors are still buying up property despite higher interest rates, it shows that “the fundamentals are strong,” Ellison said.

“International investors see US housing as one of the most reliable places to invest their money. It reflects confidence in the long term valuation and demand for rental housing, even as it highlights short-term affordability gaps for many Americans,” he added.

Final thoughts

While an increase in foreign purchases power lead to competition in some areas pressured by supplythe underlying reason for the increase is a good one for real estate investors. All this foreign investment indicates that the American housing market is still strong.