Foreign Buyers Pull Back From US Housing Market

Data from the National Association of Realtors (NAR) shows foreign buyers purchased 67,100 existing U.S. homes between April 2025 and March 2026, a 14% decline from the previous year and the second‑lowest total since tracking began in 2009. The dollar value of these transactions fell 19.1% over the same period. NAR chief economist Lawrence Yun said, “Even a slightly weaker U.S. dollar… did not induce more activity.”

The slowdown reflects high U.S. home prices, elevated mortgage rates, tight inventory and growing geopolitical uncertainty. Immigration law barriers were cited by 19% of foreign clients who chose not to buy. Canada has reclaimed its position as the largest source of foreign buyers, followed by Mexico, while China’s share has fallen.

Legislative activity is intensifying, with eight states considering 25 bills to restrict foreign ownership, Congress reviewing 32 proposals, and 26 states having passed 63 bills—11 of which are already enacted. Analysts say the reduced foreign demand will have only a minimal effect on overall home prices, though it may lower demand in certain markets.