Shifts in Buyer Origins: A Look at International Interest in U.S. Real Estate

Overview of International Interest

In Q1 2025, the landscape of international interest in U.S. real estate experienced significant shifts. While Canada continues to be the leading source of foreign traffic on Realtor.com, its share has notably decreased, dropping from 40.7% in Q1 2024 to 34.7% in Q1 2025. This decrease aligns with growing diplomatic tensions and the imposition of U.S. tariffs on Canadian goods.

Declining Canadian Interest

Key Statistics:

Naples, Florida: Canadian views plummeted by 13.5 percentage points, from 73.1% to 59.6%.
North Port, Florida: A drop of 12.9 points.
Phoenix: Down by 11.8 points.
Cape Coral, Florida: Decreased by 10.8 points.
Tampa: A decline of 10.1 points.
Detroit: Saw a drop of 10 points.

Despite the overall decline, Canadian home shoppers still represented roughly one-third of international traffic, significantly outpacing other countries.

Rankings of Other International Buyers

United Kingdom: 5.7%
Mexico: 5.4%
Germany: 3.8%
Australia: 3.2%

Texas Gains Prominence

Rising Markets

Texas has emerged as a significant growth area in Q1 2025, with the following cities gaining traction:

Austin and San Antonio: Entered the top 20 most-viewed U.S. housing markets.
Dallas: Improved by three spots.
Houston: Secured the No. 6 position overall.

Factors Driving Interest

Several factors contribute to Texas’s appeal, including:

Affordability: Lower living costs compared to other states.
No State Income Tax: Financial benefits for residents.
Economic Growth: Ongoing infrastructure development.
Cultural Diversity: An inclusive environment attracting international buyers.

According to Realtor.com, Texas’s combination of economic opportunities and connectivity makes it a sought-after destination for home buyers.

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Western Cities Lose Favor

In stark contrast to Texas’s rise, several major Western cities have seen a decline in international interest:

San Francisco, San Diego, and Las Vegas: All fell out of the top 20 markets.

Reasons for Decline

Affordability Issues: High living costs deter potential buyers.
Economic Uncertainty: Concerns about job stability and income.
Quality of Life: Challenges related to urban infrastructure and social issues.

San Francisco had already exited the top 20 list in 2024, continuing its downward trend.

Mexican Buyers: A Focus on Border Cities

Mexican homebuyers represented 5.4% of international traffic, showing a preference for cities near the U.S.-Mexico border. The most-viewed locations included:

San Diego
San Antonio
Dallas
El Paso
Houston

Impact in Specific Markets

In San Antonio, Mexican buyers accounted for an impressive 18.8% of international demand. Additional areas with notable Mexican buyer interest included:

Riverside, California: 10.5%
Chicago: 8.2%

While there was a minor decline in online traffic from Mexican buyers—from 5.8% to 5.4% year over year—specific cities like Chicago experienced more pronounced drops. For example, Chicago’s share of traffic from Mexico dropped from 10.9% to 8.2%.

Factors Influencing Preferences

The strong presence of Mexican buyers in border cities can be attributed to:

Proximity: Closer geographic location.
Cultural Ties: Strong connections foster community.
Established Networks: Existing family and business connections.
Access to Resources: Easier access to education, healthcare, and cross-border travel.

In summary, the 20 most-viewed cities by international buyers accounted for nearly 46.9% of all international traffic.

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