Foreign buyers purchased $42 billion worth of U.S. existing homes from April 2023 through March 2024, dropping 21.2% from the prior 12-month period, according to a new report from the National Association of Realtors. International buyers purchased 54,300 properties, down 36% from the previous year. This is the lowest number of homes purchased by international buyers since 2009 when NAR began tracking this data.
"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. "Therefore, it's not surprising to see a pullback in U.S. home sales from foreign buyers."
According to NAR's "2024 International Transactions in U.S. Residential Real Estate" report, from April 2023 through March 2024, foreign buyers who resided in the U.S. purchased $22.6 billion worth of U.S. existing homes, a 3.4% decline from the previous year and representing 54% of the dollar volume of purchases. Foreign buyers who lived abroad purchased $19.4 billion worth of homes, down 35% and accounting for 46% of the dollar volume. International buyers accounted for 2% of the $2.1 trillion in total U.S. existing-home sales during that period.
"Historically low housing inventory and escalating prices remain significant factors in constraining home sales for American and international buyers alike," Yun added.
The average ($780,300) and median ($475,000) home sales prices among international buyers were the highest ever recorded by NAR – and 21.9% and 19.8% higher, respectively, than the prior year. At $1.3 million, Chinese buyers had the highest average purchase price, with 25% purchasing property in California. In total, 18% of international buyers purchased properties worth more than $1 million from April 2023 to March 2024.
Canada led all countries of origin in the share of foreign buyer purchases of U.S. homes at 13%, followed by China and Mexico (11% each), and India (10%). China was first in U.S. residential sales dollar volume at $7.5 billion, continuing a trend going back to 2013. Canada ($5.9 billion), India ($4.1 billion), Mexico ($2.8 billion) and Colombia ($0.7 billion) rounded out the top five. More than two-thirds of Canadian (69%) and Chinese (68%) buyers made all-cash purchases, the highest shares among the top foreign buyer nations.
For the 16th consecutive year, Florida remained the top destination for foreign buyers, accounting for 20% of all international purchases. Texas (13%) and California (11%) were second and third, respectively, followed by Arizona (5%), Georgia, New Jersey, New York and North Carolina (4% each).
"Foreign buyers are experiencing the same challenges U.S. buyers have. There are few choices due to low inventory and high housing costs," said Jimmy Kang, a board director of the Silicon Valley Association of Realtors and chair of the local association's Global Business Council. "Some states have introduced new laws to limit to certain foreign purchases. Florida has introduced a law restricting real estate purchases by buyers from China, Russia, Iran, North Korea, Cuba, Venezuela and Syria. The National FairHousing Alliance and the Asian Real Estate Association of America filed a suit against the state alleging that law is unconstitutional, and an appeals court has temporarily blocked enforcement of the Florida law."
"The National Association of Realtors maintains relations with a network of 100 real estate organizations across 78 countries. SILVAR is NAR's global ambassador association to the Philippines and maintains a partnership with the Chamber of Real Estate & Builders Associations there," said Kang.
"Our work provides members and their communities with tools, resources and data to identify and highlight international investment opportunities in U.S. real estate. This supports local communities to drive economic development in markets across the country," said Alex Escudero, NAR's director of global strategy.
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