Foreign demand for U.S. homes continued its multiyear slide through early 2026, with international buyers purchasing fewer properties and spending less overall. New data from the National Association of Realtors points to weakening interest among overseas purchasers, even as a softer dollar offered some buyers greater purchasing power.
Key takeaways
The latest figures highlight a broad retreat in international demand for U.S. residential real estate:
- Foreign buyers purchased 67,100 existing homes between April 2025 and March 2026.
- The transactions totaled $45.3 billion.
- The purchase count was the second-lowest recorded since tracking began in 2009.
- The median price paid fell 19.1% to $465,000.
- Buyers from Canada and Mexico accounted for much of the activity.
- Florida remained the leading destination for foreign purchasers.
Foreign purchases continue a long decline
International buyers have steadily reduced their presence in the U.S. housing market since 2017. The latest total suggests that the slowdown is not a temporary fluctuation but part of a sustained change in overseas demand.
The 67,100 homes purchased during the period represented one of the weakest annual results in the National Association of Realtors’ tracking history. The overall value of those purchases also reflected a more cautious market, with foreign buyers concentrating on less expensive properties than in the previous reporting period.
Tourism and housing demand move together
NAR Chief Economist Lawrence Yun linked the decline in foreign home purchases to reduced international travel to the United States. Fewer visitors and tourists may mean fewer potential buyers become familiar with local markets, investment opportunities and second-home destinations.
That connection is particularly significant for areas that rely on international tourism. When travel declines, prospective buyers may postpone property searches, reduce investment plans or choose competing destinations outside the United States.
A weaker dollar was not enough
The U.S. dollar declined modestly over the previous year, a shift that generally makes American property more affordable for buyers using foreign currencies. However, the currency advantage did not reverse the broader downturn.
The result suggests that exchange rates are only one factor shaping international real estate demand. Travel patterns, economic uncertainty, financing costs, immigration policies and perceptions of the U.S. market can all influence whether foreign buyers move forward with a purchase.
Canada, Mexico and Florida lead activity
Purchasers from the two countries bordering the United States—Canada and Mexico—made up the largest share of foreign buyers. Their proximity, established travel connections and familiarity with U.S. communities may help explain their continued prominence.
Florida attracted more international purchasers than any other state. Its warm climate, coastal communities, large tourism economy and extensive inventory of vacation and retirement properties continue to appeal to overseas buyers, despite the national slowdown.
What the trend means for the market
Foreign buyers represent only one segment of the broader U.S. housing market, but their retreat may affect luxury markets, vacation-home communities and regions that depend heavily on international demand. Sellers targeting overseas purchasers may face longer marketing periods and greater pressure to compete on price.
For the market as a whole, the figures point to a more selective international buyer pool rather than a complete disappearance of foreign interest. Well-located properties in popular destinations may continue to attract demand, while higher prices and uncertainty constrain activity elsewhere.