PRINCETON, NJ, August 4, 2026 – According to the National Association of Realtors 2026 International Transactions in U.S. Residential Real Estate report, released last week, foreign buyers pulled back from the U.S. housing market over the past year, buying $45.3 billion worth of existing homes, the second-lowest level since they began tracking foreign buyer activity in 2009. The downward trend in foreign buyer activity mirrors a drop in international visitors, tourists, and immigration to the United States.
Even a weaker U.S. dollar over the past year, which has given foreign buyers more purchasing power, failed to spur more activity, NAR Chief Economist Lawrence Yun noted.
After rebounding last year for the first time since 2017, foreign purchases of U.S. homes lost momentum over the last year, reflecting a broader housing market slowed by high home prices, limited inventory and elevated borrowing costs. Beyond housing affordability challenges, the report also points to geopolitical uncertainty, trade policies and inflation that have weighed on international demand and prompted some overseas buyers to adopt a “wait-and-see” approach to investing in U.S. real estate.
The biggest barriers for international clients who ultimately did not buy over the last year, according to real estate professionals surveyed by NAR, were:
- 33% couldn’t find a suitable property to purchase
- 28% cited home prices
- 19% pointed to immigration laws
Still, the U.S. continues to attract foreign buyers because many metro areas remain relatively affordable compared to major global cities and offers long-term investment opportunities despite higher home prices, the report notes.
According to the report, two (2) types of foreign buyers purchased 67,100 properties, with a median purchase price of $465,000 — higher than the median price of $413,600 for all U.S. existing homes sold. Foreign buyers who resided in the U.S. as recent immigrants or held visas that allowed them to live in the U.S. purchased 37,600 homes (56% of all foreign purchases) worth $21.8 billion. Foreign buyers with permanent residences outside the U.S. purchased 29,500 homes (44% of all foreign purchases) worth $23.5 billion.
Roughly half also purchased the property as a vacation home, rental investment, or both, which far exceeds the 17% of all existing-home buyers who purchased for those purposes.
Florida continued to command the highest share of global demand, with 20% of all foreign buyers purchasing in the Sunshine State. California maintained its spot as the second-most-popular market for foreign buyers, with a 19% share, up from 15% the year before. Texas ranked as the nation’s third-largest destination for foreign buyers, accounting for 12% of transactions. New Jersey climbed the rankings to fourth place, attracting 4% of foreign buyers. Georgia rounded out the top five most sought-after areas for global shoppers, accounting for 4% of overall demand.
Other notable foreign buyer hot spots included Maryland, Washington, Michigan, Arizona, and New York.
Canada was the leading country of origin for foreign homebuyers, accounting for 16% of purchases, up from 14% a year earlier, with Florida, California, and Arizona being the top U.S. destinations. Mexico followed at 14%, with buyers primarily purchasing homes in California, Texas, and Florida. China, the top source country last year, dropped to third place at 11%, with California, Texas, and Arizona the most popular destinations. India ranked fourth, accounting for 9% of foreign buyers’ purchases, with Washington, Texas, and New Jersey attracting the most buyers. The United Kingdom placed fifth at 4%, with California, Arizona, and Michigan being the most popular destinations for U.K. buyers.
Chinese buyers (from mainland China, Hong Kong, and Taiwan) still spent the most, with a dollar volume of $7.6 billion, reflecting an average purchase price of about $1 million specifically in California. Florida.
Italy, France, Brazil, Argentina, and Spain also made a significant impact on the domestic housing market this year.
According to the report, 65% of foreign buyers purchased detached single-family homes, regardless of whether they lived abroad or in the United States, while 18% of international buyers residing overseas preferred condominiums. Overall, 49% of foreign buyers purchased U.S. real estate for use as a vacation home, rental property, or both, although intentions varied significantly by nationality.
U.K. and Canadian buyers purchased condominiums at higher rates, largely because they were more likely to use the properties as vacation homes. Nearly three-quarters of Canadian buyers used their U.S. properties as vacation homes, while only 3% of Mexican buyers did the same; instead, 47% of Mexican buyers purchased primary residences and about one-third acquired residential rental properties. Among Chinese buyers, 44% used their U.S. homes as primary residences, 20% as rental properties, and 12% as vacation homes. While personal use remains the primary motivation for most foreign buyers, those seeking passive income often favor condo-hotel properties, a hybrid model that provides the benefits of a vacation home for personal use while offering professional management and rental income when the property is not occupied, eliminating the responsibilities of being a landlord.
Of these foreign-buyer purchases, 61% used some form of financing rather than paying all cash.
CityTown Capital LLC is a specialized international mortgage broker headquartered in Princeton, NJ that offers foreign nationals and U.S. ex-pats (U.S. citizens working and residing overseas) a wide range of U.S. mortgage options for the purchase of U.S. residential real estate. We offer qualified applicants a full range of fixed- and adjustable-rate mortgages (ARMs) at the most competitive interest rates, with high LTVs, in amounts ranging from USD$100,000 to USD$3,000,000. International borrowers can use credit and income from their home country to qualify. We utilize an extensive network of over 50+ sophisticated bank and non-bank lenders who understand how to review a foreign buyer’s loan application and assess foreign-based financial documents.
Please give us a call to discuss how CityTown Capital can assist you with U.S. mortgage financing for your purchase of U.S. residential real estate.
