According to a Realtor.com survey, foreign home buyers accounted for 1.9% of Realtor.com’s internet traffic in the first quarter of 2025, compared to 1.7% in the same period in 2024, indicating that foreign demand accounted for a higher portion of U.S. housing demand.
The demand from Canada, the leading source of overseas home shopping to the United States, decreased from 40.7% in Q1 of 2024 to 34.7% in the first quarter of 2025, despite this overall gain.
“While international demand for U.S. housing was a growing share of total demand, the drop from potential Canadian shoppers underscores the impact of recent trade policies on cross-border real estate interest,” said Danielle Hale, Chief Economist, Realtor.com. “While coastal magnets like Miami, New York, and Los Angeles continue to attract global buyers, the growing appeal of Texas markets to international buyers signals a noteworthy regional shift in investment focus, potentially driven by economic factors and business-friendly environments.”
So, where are they shopping?
Canadian home shoppers account for 34.7% of overseas traffic this year, despite a change from 2024. They are followed by shoppers from the UK (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%). Miami accounted for 8.7% of all worldwide demand in the U.S. in the first quarter of 2025, making it the most popular market for foreign consumers. New York, Los Angeles, and Orlando, Florida were next in line.
To be more precise, Canadian homebuyers drove 59.6% of the international demand for Naples, FL, out of the top 20 markets. Cape Coral, FL (59.1%), Phoenix (57.5%), North Port, FL (56.4%), and Riverside, CA (52.2%) came next.
How Does This Affect Americans?
During the same time period, the percentage of Mexican international internet traffic that clustered near the US-Mexico border decreased from 5.8% to 5.4%. In stark contrast to the dispersed coastal preferences of purchasers from other nations, the top destinations for Mexican homebuyers are primarily concentrated around the U.S.-Mexico border, including San Diego, San Antonio, Dallas, El Paso, Texas, and Houston.
During the same time period, the percentage of Mexican international internet traffic that clustered near the US-Mexico border decreased from 5.8% to 5.4%. In stark contrast to the dispersed coastal preferences of purchasers from other nations, the top destinations for Mexican homebuyers are primarily concentrated around the U.S.-Mexico border, including San Diego, San Antonio, Dallas, El Paso, Texas, and Houston.
“Mexican buyers likely tend to favor U.S. border cities because of their proximity to home, strong cultural and language connections, established family and business networks, and easier access to education, healthcare and cross-border travel—making these areas both practical and familiar for living and investment,” Hale said.
Similar tariffs were also imposed on Mexican imports, but over the same time period, Mexico’s percentage of international trade to the United States decreased just somewhat, from 5.8% to 5.4%.
Since neither market was in the top ranks in the first quarter of 2024 or the first quarter of 2020, before the pandemic, Austin, Texas, and San Antonio made it into the top 20 metros during the first quarter of 2025, indicating a significant shift in foreign interest in Texas. Two other Texas metro areas had significant increases: Houston took sixth place, and Dallas moved up three spots from the previous year.
Texas markets have grown more alluring to both local and foreign homebuyers in recent years. Numerous well-known companies have grown or moved their operations to Texas due to the state’s pro-business climate, lower cost of living, and lack of state income tax.
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