Foreign Investment Shifts in US Real Estate Reveal Varied Trends by Nationality and Region

Foreign purchases of existing homes in the United States have declined significantly between April 2025 and March 2026, according to data from the National Association of Realtors (NAR). Total foreign buyer spending dropped 19.1% to $45.3 billion, with the number of homes purchased falling 14% to 67,100. However, these figures mask substantial differences among foreign buyers and regional markets.

Canadian buyers led in transaction volume, accounting for 16% of purchases (approximately 10,700 homes), followed by Mexican buyers at 14%. Chinese buyers, who were the top purchasers the previous year, fell to third place with 11% of transactions. Despite buying fewer homes, Chinese investors spent the most money overall, investing $7.6 billion with an average purchase price nearing $1 million, focusing on higher-end properties.

Regionally, foreign investment is concentrated in Florida (20% of foreign buyers), California (19%), and Texas (12%), while states like New Jersey and Georgia each attracted 4%. This uneven distribution means shifts in foreign buyer behavior can significantly impact some local markets while leaving others largely unaffected. Additionally, 56% of foreign purchases were made by recent immigrants or visa holders residing in the US for over six months, with only 44% by buyers living permanently abroad.

Attorney Ilan Leibovitz emphasized that foreign buyers are not a monolithic group, noting differences in market behavior based on nationality, location, and investment motives. He also cautioned against overreacting to headline trends, pointing out that foreign home purchases had surged 44% the previous year. Leibovitz advised Israeli investors to carefully assess local regulations and investment conditions rather than shifting funds based solely on broad market headlines, warning that doing otherwise could simply exchange one risk for another.