The sentiment around U.S. real estate for those living abroad is increasingly positive. Each year, the National Association of Realtors publishes a report titled “International Transactions in U.S. Residential Real Estate,” which highlights trends among foreign buyers.
The most recent NAR report cited that the total purchase volume increased by $14 billion compared to the year prior’s report. This was the highest jump in recent memory, even without considering new construction purchases involving internationals.
5 foreign buyer trends for 2025
At a time when American buyers are wary, foreign investment has not only persisted but actually increased. There are five key insights that are driving global interest that you can use to benefit your business this fall.
1. US real estate offers security with global uncertainty
Fun fact: Over the past 18 months, 49 percent of all new construction housing in Miami was purchased by foreigners, according to a report by the Miami Association of Realtors. Among international buyers, Latin Americans accounted for 86 percent of the purchases, underscoring the appeal of American real estate to those living in countries with high levels of uncertainty.
Compared to countries like Colombia or Argentina, where inflation is quite volatile and often high, the U.S. offers a way to preserve wealth. The U.S. dollar is a global currency, and owning real estate tied to the dollar puts foreign buyers in a strong position for wealth preservation compared to what their home country may offer.
The other piece to this puzzle is historical performance. In the past 20 years, the average property price has more than tripled. Ultimately, foreigners see American real estate as an opportunity to hedge against downside with the potential for significant upside.
2. Foreigners aren’t afraid of ‘high’ interest rates
What’s the most common objection you hear from prospective buyers who won’t pull the trigger? *Insert your favorite statement about high interest rates here.*
While many Americans are waiting for the Federal Reserve to start cutting interest rates, foreigners are less apprehensive. In Canada, investment property yields are comparably low, and taxation is not favorable to investors. Plus, there’s no 30-year fixed-rate mortgage in Canada. Instead of certainty for the duration of a loan, these rates operate much like adjustable-rate mortgages in the U.S., which are subject to market conditions as they adjust. Having a guaranteed rate for a set period of time is attractive to these buyers.
In many other parts of the world, double-digit interest rates are commonplace. To get a loan at today’s rates in the U.S. is still viewed as a discount. Meanwhile, many Americans haven’t come to terms with the fact that 2 percent interest rates in 2021 were the exception, not the rule. With this in mind, it’s no surprise that we’re seeing an influx of foreign buyers.
3. Cash-out refinancing is increasing in popularity
Over the first half of 2025, we’ve found that about 60 percent of Waltz’s business has been from cash-out refinances. They’re not refinancing for a better rate; they’re looking for ways to tap into their equity. We’re seeing many of our foreign investor clients cash-out refinance to buy more property.
4. Tax benefits incentivize purchasing
Ben Franklin famously said something to the effect of “there are two certainties in life: death and taxes.” But what if real estate could help you avoid high tax bills?
U.S. real estate has been a beneficial asset to own from a tax perspective – just ask your accountant! Recently, the One Big Beautiful Bill Act was passed. Some of the key highlights include 100 percent bonus depreciation, which accelerates the rate at which investors can capture depreciation on property.
The other is SALT (state and local tax) deductions, which are temporarily increased to up to $40,000 from $10,000, allowing investors to pay less in taxes. Foreign and domestic investors alike are incentivized to continue buying real estate to obtain these benefits before 2025 comes to an end and a new tax year begins.
5. Seasonality plays a role in buying behavior in certain markets
In cold-climate markets, fall is busy, as buyers aren’t as motivated to go look at properties in the dead of winter. Inventory also tends to significantly decrease after the fall, limiting opportunity until the spring.
On the flip side, there are many U.S. markets driven by seasonal tourism. Think Colorado for skiers or Arizona and Florida for snowbirds. So whether buyers are purchasing property to use as a second home or Airbnb, there’s motivation to buy leading into peak season.
In many parts of the world, U.S. real estate symbolizes opportunity. While Americans are sitting on the sidelines waiting for better interest rates or for economic circumstances to change, foreigners are taking advantage of buyer’s markets around the country.
