What Growing International Interest In U.S. Real Estate Means for Investors

Disclaimer: PropStream does not offer investing advice or make profit promises. This article is for educational purposes only. We recommend consulting financial professionals and/or doing your due diligence before investing in U.S. real estate.

American real estate investors are facing growing competition from international buyers. In Q1 2025, 1.9% of online traffic to property marketplace Realtor.com came from foreign home shoppers, up slightly from 1.7% in Q1 2024 and 1.3% in Q1 2020, the pre-pandemic level.

Read on to learn which housing markets are seeing the highest uptick in international demand, where these foreign buyers are from, and what this all means for American investors.

The U.S. Housing Markets Drawing the Most International Interest

While international interest in U.S. real estate is up overall, some markets are drawing more attention than others.

For example, Miami, FL captured the highest share of international demand at 8.7%, followed by New York, NY (4.9%), Los Angeles, CA (4.6%), Orlando, FL (2.9%), and Dallas, TX (2.8%).

Texas Markets Rise in Popularity

Interestingly, Austin, TX (1.1%) and San Antonio, TX (1.0%) made it onto the list of top 20 markets for international home shoppers for the first time. Meanwhile, two other Texas metros climbed the list: Dallas, TX (2.8%) and Houston, TX (2.6%).

This is likely because Texas’s low cost of living, lack of state income tax, and pro-business policies continue to draw companies and workers, making Texas real estate an appealing long-term investment.

Some Western Markets Drop in Popularity

At the same time, San Francisco, CA, San Diego, CA, and Las Vegas, NV, dropped off the top 20 list in Q1 2025. This may be due to persistent home affordability challenges, which have forced many residents to move out, putting downward pressure on housing demand.

Top Countries Driving International Demand

Canada leads all countries in international demand for U.S. real estate, accounting for 34.7% of foreign listing traffic. It’s distantly followed by the U.K. (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%).

Despite Lead, Demand From Canada Falling

Interestingly, Canada’s share of international demand fell from 40.7% in Q1 2024, around the time the U.S. imposed a series of tariffs on Canadian goods. The largest drops in international views from Canada occurred in Naples, FL (13.5% decline), North Port, FL (12.9%), Phoenix, AZ (11.8%), Cape Coral, FL (10.8%), Tampa, FL (10.1%), and Detroit, MI (10%).

Demand From Mexico Clustered Around the Border

Meanwhile, international demand from Mexico is largely clustered around the U.S.-Mexico border. For example, Mexican homebuyers played a significant role in San Antonio, TX, driving 18.8% of international demand, followed by Riverside, CA (10.5%). This is likely due to these cities' proximity to Mexico and their established Mexican-American communities.

What This Means for Investors

As an investor, rising international demand for U.S. real estate can drive up home values, making it harder to buy at a discount and secure strong margins.

However, it can also reinforce confidence in U.S. real estate as a stable, globally attractive asset class. Furthermore, you may be able to sell property to international buyers for top dollar, boosting your liquidity and potentially offsetting the challenges of higher acquisition costs.

How to Stay Ahead of International Competition

To maintain a competitive edge against foreign investors, try the following:

Focus on Emerging Markets

While international buyers tend to target major housing markets like Miami, Los Angeles, and New York, you don’t have to. Instead, focus on second-tier cities or suburban areas with strong fundamentals where you’re more likely to find opportunities that foreign buyers overlook.

Adapt to International Buying Trends

Another way to stay ahead of rising international competition is to adapt to foreign buying preferences. For example, are international buyers focusing on short-term rentals (STRs), luxury properties, or student housing? Use that intel to pivot your strategy.

Refine Your Acquisition Strategies

When buying property, lean into your competitive advantages over foreign buyers. For example, build local relationships that generate word-of-mouth deal flow, get creative with your offers by agreeing to seller financing or lease options, or focus on speedy and consistent closings.

Diversify Your Exit Strategies

When selling, take advantage of growing international demand by positioning your properties to appeal to foreign buyers. For example, you can focus on selling turnkey rentals that don’t require any rehab or list on international marketplaces with international agents.

Gain a Competitive Edge with Off-Market Leads on PropStream

Ultimately, the secret to gaining a competitive edge over foreign buyers is to look for deals where they’re not looking.

With PropStream, you can quickly uncover profitable neighborhoods just outside cities saturated with international competition. Furthermore, you can pinpoint off-market properties that might be flying under the radar before creating custom lead lists and marketing campaigns. 

Note on sources:

All data on international demand in U.S. housing from Realtor.com