The United States continues to be a popular destination for foreign real estate buyers including in California where billionaires are fleeing the state because of a proposed wealth tax.
That’s according to according to an analysis by Realtor.com, which said California’s proposed wealth tax might be fueling an outflow of billionaires toward friendlier tax hubs such as Florida and Nevada, but global buyers are doubling down on Los Angeles, where Fox Business said they are eying luxury homes on the market.
The analysis shows that foreign buyers bought $56 billion worth of U.S. existing homes from April 2024 through March 2025, according to the National Association of Realtors 2025 International Transactions in U.S. Residential Real Estate report.
The uptick in international demand for luxury homes in the Los Angeles area actually dates back to the wildfires that devastated Southern California in January 2025. That demand rose by 18.2% by the end of last year before easing to start 2026, an analysis by Realtor.com found.
“At its peak, nearly 1 in 5 luxury home shoppers in the LA metro was looking from abroad, reflecting the metro’s draw for high net worth individuals who view Southern California as a destination for residency, second homes, investment properties, and those seeking a form of wealth preservation,” said Realtor.com senior economist Anthony Smith.
International Transactions Rise
After years of declines, Realtor.com noted that international home transactions in the U.S. have risen year-over-year, from 54,300 to 78,100. It’s a big drop from 2017, when foreigners bought 284,500 homes. It is a reversal of a consistently downward trend that started that same year, Realtor.com noted.
“Foreign investor activity eased as global uncertainty around the pandemic, and inventory shortages made the U.S. market less attractive,” said Realtor.com senior economic analyst Hannah Jones. “Over the last year, however, the U.S. dollar has softened, inventory has picked up, and buyers have pulled back, creating opportunities for foreign investors, especially those paying in all-cash.”
The United States is a safe place for foreigners to park their cash.
“U.S. real estate remains a safe haven for global wealth,” Nick Malinosky of Douglas Elliman in Florida said. “Compared to many countries where property rights can be murky or taxed aggressively, the U.S. is still seen as one of the most secure places to place capital in real assets.”
Elliman said that the Sunshine State remains No. 1 with foreign buyers despite its issues with extreme weather and soaring insurance costs.
“Even with currency fluctuations and shifting geopolitics, the combination of strong property rights, no state income tax, and a historically resilient luxury market make this region a very attractive long-term investment,” he said.
Realtor.com noted that No. 4 New York has been stealthily rising in popularity with foreign buyers, almost doubling its share of international buyers in one year.
Manhattan Gains Interest
“The foreign buyer has quietly reemerged in Manhattan this year,” Michelle Griffith of Douglas Elliman’s New York office said. “We’re seeing interest from European, Middle Eastern, and Asian buyers who are drawn to new developments, pied-à-terres, and iconic properties in neighborhoods like Tribeca, Central Park South, and the West Village. They’re incredibly selective but they’re very much here.”
Broker Jennifer Roberts of Coldwell Banker Warburg said that New York City’s many top schools are a perennial draw for the foreign buyer, as is being the home-base for multiple industries.
“Buying a home in New York City is considered a strategic move to strengthen professional ties,” she said.
Agent Robert Elson of the same agency notes that the falling U.S. dollar is pushing purchases.
“Foreigners can now get a bigger bang for the buck in the U.S.,” he said.
No. 5 Arizona continues to be one of the more in-demand states with foreign buyers, although its popularity is waning, losing more than half its share of foreign buyers since 2010.
“Arizona has more limited foreign investment, but it’s a prime target due to the relative affordability of residential housing and the sharp population increase,” Phoenix-based investor Cory Pinter of Inherited House Guide told Realtor.com.
