The Return of Foreign Buyers
In today’s real estate market, affordability is already stretched thin. However, another force is quietly reshaping the landscape: foreign buyers are quickly returning to the U.S. housing market.
From April 2024 to March 2025, international buyers purchased more than 78,000 homes in the U.S., according to the National Association of Realtors. That’s a 44% increase over the previous year and the first significant rebound since 2017.
Many of these purchases are made in cash, creating a lopsided playing field that increasingly excludes American buyers.
Why It Matters: The Real Impact on American Buyers
All-Cash Offers Outcompete Locals
Nearly 47% of foreign home purchases are all-cash deals. That’s almost double the rate of U.S. buyers, who typically rely on traditional mortgage financing.
In a competitive market, cash wins. It closes faster, involves fewer contingencies, and is more attractive to sellers. As a result, Americans especially first-time buyers using FHA or VA loans are often left behind.
Inventory Gets Tighter and More Expensive
Foreign buyers tend to focus on vacation homes, second properties, and rental investments, not primary residences. This further reduces inventory in already-tight markets, particularly in Florida, California, Texas, New York, and Arizona.
When international investors are willing to pay above asking, they also set new price benchmarks that ripple through local comps. That means homes in the surrounding neighborhoods get more expensive for everyone.
The Impact May Be Local, But It’s Growing
While foreign purchases represent just 2.3% of total U.S. home sales, their influence is concentrated and growing in key regions. These pockets see a disproportionate effect on pricing, inventory, and competition.
In states like Florida, where international buyers make up more than 20% of the market in some zip codes, the impact is undeniable.
This Isn’t About Politics. It’s About Fairness
Let’s be clear: this is not about demonizing foreign investment. Global interest in U.S. real estate is nothing new, and it signals confidence in the long-term strength of our market.
But that doesn’t change the fact that many hardworking Americans are getting priced out of homeownership, not because of a lack of effort, but because they’re competing with global capital that doesn’t play by the same rules.
“Real estate has long been the path to financial freedom for the middle class, when international money makes it harder for everyday Americans to get in the game, we need to take a serious look at the rules.”
Can Anything Be Done?
Some states are starting to take action:
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Florida recently passed laws limiting certain types of foreign real estate ownership.
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Texas has introduced legislation aimed at foreign land purchases.
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More policymakers are pushing for greater transparency around who is buying properties through trusts or LLCs.
These aren’t sweeping federal solutions, but they reflect growing concerns about how much influence foreign money should have in the U.S. housing market.
The Bottom Line
Foreign buyers are back, and they’re making waves in an already overheated housing market.
While they bring capital and confidence, their presence is also making it more difficult for local families and first-time buyers to achieve the American dream of homeownership.
The solution isn’t isolation, it’s equity and access. It’s ensuring that U.S. residents have a fair chance to buy a home in the country they live, work, and raise their families in.
