After nearly a decade of steady decline, foreign home sales in the United States are rising again. According to the National Association of Realtors’ 2025 report on international transactions, foreign buyers purchased $56 billion worth of U.S. residential property between April 2024 and March 2025—a 33.2% increase from the previous year.
The number of homes sold to international buyers jumped 44% to 78,100 during the 12-month period, marking the first annual increase in foreign buyer activity since 2017. The report signals renewed interest from global investors, despite a still-uncertain economic climate.
China, Canada Lead Buyer Activity
Buyers from China led all international sales, accounting for 15% of foreign home purchases, followed by buyers from Canada (14%), Mexico (8%), India (6%), and the United Kingdom (4%). Together, these five countries made up nearly half of all foreign home transactions recorded by the association.
While demand was spread nationwide, five states stood out as top destinations: Florida, California, Texas, New York, and Arizona. These states, especially those in the Sunbelt, offered what international buyers were looking for—strong rental markets, warmer climates, and appealing vacation properties.
The sharp rise in foreign home sales reflects renewed interest in the U.S. market following years of reduced activity due to travel restrictions, currency volatility, and trade tensions. Even with the surge, foreign buyer transactions remain relatively low by historic standards, with 2025 marking only the second-lowest level since tracking began in 2009.
California Remains a Key Market
California remains one of the most attractive markets for international buyers, particularly those from China and India. The state’s mix of urban investment opportunities and vacation home appeal has kept it a perennial favorite among foreign investors. In Los Angeles County and surrounding areas, real estate professionals say demand for residential properties from non-U.S. citizens has seen a modest but noticeable uptick.
Local agents attribute the activity to returning international students, newly mobile digital entrepreneurs, and investors seeking stable rental returns. “California real estate continues to be viewed as a safe haven for long-term investment,” said a regional broker with Century 21 West Coast.
Still, affordability remains a challenge. Many buyers are focusing on mid-tier markets rather than high-end coastal properties. In places like El Monte and Baldwin Park, foreign investment is more likely to come in the form of rental property purchases or multi-family units rather than luxury estates.
Outlook Remains Uncertain
Despite the increase in foreign home sales, the market outlook remains mixed. Ongoing global trade disputes and shifting currency exchange rates continue to influence investment decisions. Tariffs and diplomatic tensions—especially involving China and the European Union—have created volatility that could deter future transactions.
The NAR report cautions that while the recent surge is encouraging, it may not represent a sustained trend. Analysts point to the lingering effects of inflation, interest rate hikes, and geopolitical instability as potential barriers to continued growth.
At the same time, the appeal of the U.S. housing market—especially in stable regions like Southern California—remains strong. Many investors are betting on long-term appreciation and solid rental yields, especially in diverse, high-demand communities like those in the San Gabriel Valley.
Local Implications for San Gabriel Valley
For communities like Rosemead, South El Monte, and Baldwin Park, renewed foreign investment could help support property values and spur development. With many international buyers focusing on rental properties, local housing stock may face added competition. This could place upward pressure on rents, particularly in neighborhoods already experiencing tight supply.
Property management professionals in the region are already adapting. Kenneth Ferreira, a local broker with Ramona Property Managers, Inc., noted that more foreign investors are reaching out for professional management support. “They’re looking for stable returns and want someone local who understands both the property and the community,” Ferreira said.
Whether the recent rise in foreign home sales turns into a sustained recovery remains to be seen. But for now, the return of international buyers is breathing new life into the market—especially in communities where housing demand remains strong and inventory remains limited.
For more details, visit the National Association of Realtors’ full report: www.nar.realtor/research-and-statistics【source】.
