Foreign Buyers Flock to Los Angeles Luxury Homes Despite Tax

While California’s proposed wealth tax may prompt some billionaires to relocate to other states, international buyers are increasingly investing in the Los Angeles luxury home market.

Following the January 2025 wildfires, foreign interest surged, peaking at 18.2 percent of luxury home searches in L.A. by December, Realtor.com reported. Although demand dipped slightly in early 2026, global buyers continue to target L.A.’s trophy properties.

Agents report robust activity: Nicole Plaxen of Sotheby’s recently toured homes with a Brazilian family with an $80 million budget and closed deals with a Japanese investor. Her overseas clients typically invest $50 million or more, favoring large, modern mansions and new builds, often paid for in all cash.

Realtor.com data shows Canada leads international listing views at 29 percent, followed by the U.K., Australia, Germany and Mexico.

California’s economic strength reinforces the trend. The state recently surpassed Japan as the world’s fourth-largest economy, with GDP exceeding $4 trillion. Since 2019, California’s economy has grown 40 percent, outpacing China’s 32 percent growth.

In March, L.A. ranked as the second-most expensive luxury market in the U.S., with entry-level luxury homes starting at $4.3 million — over three times the national median. Yet agents such as Victor Currie of Douglas Elliman call L.A. a “safe-haven market for global investors.”

“As much as it feels overpriced by average housing standards, we can be thought of as a relative bargain compared to other major cities like London or Sydney or Hong Kong,” Curie told Realtor.com.

Foreign buyers are drawn to the market’s mix of lifestyle, weather, culture and financial power, where properties can serve as primary residences, second homes or wealth preservation assets. One Kuwaiti billionaire recently put seven homes in Bel Air on the market.

While most luxury buyers are still domestic, foreign investors are significantly more likely to pay all-cash, bypassing high interest rates.

– Joel Russell