International Buyers Increase Their Share of U.S. Housing Demand in Early 2025
In the first quarter of 2025, a noticeable trend emerged in the U.S. housing market as international buyers accounted for a larger share of online traffic on Realtor.com®. Specifically, international home shoppers constituted 1.9% of total traffic, a rise from 1.7% in the same period last year. However, this increase is overshadowed by a marked decline in interest from Canadian buyers, who have historically led international demand. The share from Canada dropped from 40.7% in early 2024 to just 34.7% in 2025.
Danielle Hale, the chief economist at Realtor.com®, noted, "Although international demand for U.S. housing has grown, the decline from Canadian shoppers highlights the repercussions of recent trade policies on real estate purchases across the borders."
The patterns of international buyer interest reveal evolving dynamics in the housing market. While traditional hotspots like Miami, New York, and Los Angeles remain attractive to overseas buyers, there is a notable shift towards Texas markets. This shift is likely influenced by economic factors and the state's reputation for offering a business-friendly environment.
Among the top sources of international buyers, Canada still leads with 34.7%, followed by the UK at 5.7%, Mexico at 5.4%, Germany at 3.8%, and Australia at 3.2%. Miami captured the highest share of international demand at 8.7%, maintaining its status as a favored destination for global shoppers. Other notable markets included New York and Los Angeles, consistently drawing attention from international clientele.
Looking at specific market preferences, Canadian homebuyers significantly influenced several Florida markets. For instance, they accounted for a staggering 59.6% of the international interest in Naples, followed closely by Cape Coral at 59.1% and Phoenix at 57.5%. This trend underscores a preference for warmer climates and open spaces, which might be appealing amid shifting economic landscapes.
Mexican homebuyers, while accounting for a smaller percentage of international traffic, predominantly focused on locations near the U.S.-Mexico border. This group gravitated towards urban centers like San Diego, San Antonio, Dallas, and El Paso. �This clustering reflects the strong cultural and linguistic ties that enhance community connections for Mexican buyers seeking investment opportunities or homes in the U.S.
Interestingly, the recent tariffs imposed on imports from Mexico did not significantly impact the international traffic from this area; the share only shifted slightly from 5.8% to 5.4%. This steadiness suggests that the underlying demand for housing remains resilient amidst external economic pressures.
Texas has emerged as a game-changer in 2025. With cities like Austin and San Antonio making their way onto the list of top 20 metros for international interest, it marks a significant shift from previous years. Dallas moved up three positions compared to last year, and Houston maintained its spot at sixth, signifying the state's increasing attractiveness for cross-border investments.
The boost in Texas's appeal is largely attributed to its lower costs of living, absence of state income tax, and a pro-business environment. These factors have compelled numerous firms to extend their operations or relocate there, facilitating a broader interest in housing.
In summary, while the international landscape of the U.S. housing market continues to evolve, the shift towards Texas and the decline of Canadian interest demands attention. As the economy fluctuates, so too will the dynamics of global investment in American real estate.
Danielle Hale, the chief economist at Realtor.com®, noted, "Although international demand for U.S. housing has grown, the decline from Canadian shoppers highlights the repercussions of recent trade policies on real estate purchases across the borders."
The patterns of international buyer interest reveal evolving dynamics in the housing market. While traditional hotspots like Miami, New York, and Los Angeles remain attractive to overseas buyers, there is a notable shift towards Texas markets. This shift is likely influenced by economic factors and the state's reputation for offering a business-friendly environment.
Among the top sources of international buyers, Canada still leads with 34.7%, followed by the UK at 5.7%, Mexico at 5.4%, Germany at 3.8%, and Australia at 3.2%. Miami captured the highest share of international demand at 8.7%, maintaining its status as a favored destination for global shoppers. Other notable markets included New York and Los Angeles, consistently drawing attention from international clientele.
Looking at specific market preferences, Canadian homebuyers significantly influenced several Florida markets. For instance, they accounted for a staggering 59.6% of the international interest in Naples, followed closely by Cape Coral at 59.1% and Phoenix at 57.5%. This trend underscores a preference for warmer climates and open spaces, which might be appealing amid shifting economic landscapes.
Mexican homebuyers, while accounting for a smaller percentage of international traffic, predominantly focused on locations near the U.S.-Mexico border. This group gravitated towards urban centers like San Diego, San Antonio, Dallas, and El Paso. �This clustering reflects the strong cultural and linguistic ties that enhance community connections for Mexican buyers seeking investment opportunities or homes in the U.S.
Interestingly, the recent tariffs imposed on imports from Mexico did not significantly impact the international traffic from this area; the share only shifted slightly from 5.8% to 5.4%. This steadiness suggests that the underlying demand for housing remains resilient amidst external economic pressures.
Texas has emerged as a game-changer in 2025. With cities like Austin and San Antonio making their way onto the list of top 20 metros for international interest, it marks a significant shift from previous years. Dallas moved up three positions compared to last year, and Houston maintained its spot at sixth, signifying the state's increasing attractiveness for cross-border investments.
The boost in Texas's appeal is largely attributed to its lower costs of living, absence of state income tax, and a pro-business environment. These factors have compelled numerous firms to extend their operations or relocate there, facilitating a broader interest in housing.
In summary, while the international landscape of the U.S. housing market continues to evolve, the shift towards Texas and the decline of Canadian interest demands attention. As the economy fluctuates, so too will the dynamics of global investment in American real estate.
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