Homebuying demand from foreign buyers ticked up in the first quarter, but oh, how Canada is turning its back on the United States amid increased geopolitical tensions.
International home shoppers increased activity in the housing market during the first quarter as foreign buyers generated 1.9 percent of Realtor.com online traffic on for-sale listings, the platform reported. That’s up from 1.7 percent in the first quarter of 2024, according to the report, which defines interest as international views of for-sale listings.
Miami claimed the top spot among international buyers, capturing 8.7 percent of foreign buyer demand. New York followed with 4.9 percent, while Los Angeles secured 4.6 percent of international views. Orlando and Dallas rounded out the top five destinations.
Texas markets showed remarkable growth. Austin and San Antonio entered the top 20 rankings after being absent before COVID-19. Dallas rose three spots compared to last year, while Houston landed sixth place again.
The state attracts buyers through affordable living costs, no state income tax, and a corporate-friendly climate that draws major businesses, including Realtor.com itself. The report notes that Texas markets increasingly draw international buyers seeking economic expansion, employment growth and promising long-term returns.
On the other end of the report, two Western markets dropped from the top 20: San Diego. and Las Vegas. San Francisco dropped from the top 20 last year and remained on the outside as it struggles with high housing costs, technology industry instability and challenges such as zoning reform and homelessness that discourage international investors seeking reliable returns.
Canadian buyers dominated international traffic at 34.7 percent, but that share marks a significant decline from 40.7 percent in 2024’s first quarter. The decrease may be correlated with tariffs placed on Canadian goods and shifting diplomatic relations under President Donald Trump’s administration. Canadian buyers showed the strongest interest in Naples, Florida, driving 59.6 percent of that market’s international demand, while also checking out other warm regions.
Mexican buyers, meanwhile, followed clear geographic patterns by concentrating interest in border communities including San Diego, San Antonio, Dallas, El Paso and Houston. Mexican purchasers represented 5.4 percent of international activity, declining modestly from 5.8 percent one year earlier.
The United Kingdom, Germany and Australia also contributed significantly to international buyer activity, representing 5.7 percent, 3.8 percent and 3.2 percent of foreign traffic, respectively.
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