US housing market drawing less interest from foreign buyers 

In addition to presenting challenges to domestic homebuyers and sellers, the sluggish U.S. housing market has become less appealing to foreign buyers, a new report suggests.

Between April 2025 and March 2026, international buyers purchased an estimated 67,100 homes, 14% fewer than the previous 12-month period and the second-lowest level on record dating back to 2009, according to the National Association of Realtors' 2026 International Transactions in U.S. Residential Real Estate report.

The drop "mirrors the decline in international visitors and tourists to the United States," NAR Chief Economist Lawrence Yun noted in a news release. "Even a slightly weaker U.S. dollar over the past year, which provides more purchasing power for foreigners, did not induce more activity."

Nearly half (49%) of the properties purchased by foreign buyers were intended to be vacation homes or rentals, the report noted, while 44% were intended to serve as the buyer's primary residence.

A decade-long decline: Foreign homebuying activity is a shadow of what it was a decade ago. In 2016, international buyers purchased nearly 215,000 homes, and the number jumped to 284,500 a year later — more than four times the most recent 12-month period covered by NAR's report.

In the years that followed, the number of foreign home purchases steadily dropped until last year. The latest 12-month total is a bit above the record-low number reported by NAR in 2024 (54,300).

The monetary total of foreign home purchases has also fallen from the 2017 high of $153 billion. International buyers purchased about $45.3 billion in homes between April 2025 and March 2026, down from $56 billion the year prior and slightly above 2024's total of $42 billion, according to the report.

Top hurdles for foreign buyers: Nearly 7 in 10 (68%) Realtors worked with an international client who did not buy a home in the U.S. Of those agents, 33% said their client could not find a property to purchase, 28% cited cost as the reason their client didn't buy and 19% said immigration laws or visa problems played a role in their client's decision, the report said.

Canadians top the list: Canada accounted for the highest share of foreign buyers at 16%, taking over the top spot from China in NAR's 2025 report. Canadians purchased 10,700 U.S. properties from March 2025 to April 2026, a 200-home drop compared to the year prior and a far cry from 2012 when Canadians purchased 49,500 U.S. homes.

The decline among Chinese buyers was even steeper, falling from 11,700 U.S. homes in 2025's report to 7,400 properties in the 12-month period ending March 2026. Buyers from Mexico placed second on the list with 9,400 U.S. homes purchased. India was behind China at 6,000, and the United Kingdom rounded out the top five at 2,700.

The Canadian purchase slowdown is expected to continue. A separate report recently released by Redfin estimates that 15% fewer Canadians were searching for U.S. homes in June compared to the same time last year, and their searches for U.S. homes have dropped by about 37% over the past two years.

"Canada's economy is starting to recover after a weak start to the year, but uncertainty around trade, jobs, the domestic housing market and inflation is still prompting many Canadians to think twice about making a major purchase," said Chen Zhao, Redfin's head of economics research.

"Buying a home in another country is a particularly big financial commitment," Zhao added, "so it makes sense that some Canadians are putting those plans on hold."