International Buyer Demand for U.S. Homes Upticks in Early 2025

South Florida Still Top Target; Texas Emerges as New Key Market

A new report from Realtor.com reveals a modest uptick in international interest in U.S. real estate, with 1.9% of the platform’s traffic in the first quarter of 2025 coming from global home shoppers — up slightly from the same period in 2024. However, this overall growth masks notable shifts among individual countries, particularly a sharp decline in demand from Canada, historically the top source of international buyers.

Canadian interest dropped from 40.7% of international traffic in Q1 2024 to 34.7% in Q1 2025, underscoring how recent trade policy tensions may be cooling cross-border real estate interest.

“Despite a slight overall uptick in international demand for U.S. housing, the drop from potential Canadian shoppers underscores the impact of recent trade policies on cross-border real estate interest,” said Danielle Hale, Chief Economist at Realtor.com. “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.”

Canada Still Leads, but With Reduced Share

Even with the drop, Canadian buyers still accounted for the largest share of international home search traffic to the U.S. in Q1 2025. They were followed by shoppers from the United Kingdom (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%).

Miami remained the most searched U.S. metro by foreign buyers, attracting 8.7% of international demand. Rounding out the top cities were New York, Los Angeles, and Orlando.

Where Canadians Are Searching

Among the top 20 U.S. markets for foreign interest, Canadian home shoppers heavily favored warm-weather destinations. Naples, Florida saw the highest concentration, with Canadians accounting for 59.6% of its international traffic. Cape Coral (59.1%), Phoenix (57.5%), North Port, Florida (56.4%), and Riverside, California (52.2%) followed closely.

Mexico’s Demand Centers on Border Cities

Interest from Mexican buyers dipped slightly from 5.8% to 5.4% year-over-year. However, their geographic focus remains consistent–centered on cities near the U.S.-Mexico border. Top targets include San Diego, San Antonio, Dallas, El Paso, 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,” added Hale.

Despite trade tensions and tariffs impacting imports from Mexico, demand from Mexican buyers held relatively steady.

Texas Surges in Global Real Estate Interest

Texas has emerged as a rising star among international home shoppers. In Q1 2025, Austin and San Antonio entered Realtor.com’s top 20 metros for international interest — neither city had ranked in the same period of 2024 or even in pre-pandemic 2020. Dallas jumped three spots year-over-year, and Houston climbed into the No. 6 position overall.

Texas’ surge in popularity is likely fueled by its affordability, no state income tax, and reputation as a business-friendly environment. The state’s pro-growth policies have attracted major corporate relocations in recent years, further boosting interest among overseas investors and relocating families.

As international buyers recalibrate their U.S. property search strategies, Realtor.com’s findings suggest a continued evolution in market preferences–shaped by global economic conditions, trade policies, and domestic market fundamentals.