Podcast Summary: Real Estate Without Borders
Episode: NAR Economist: Trends in International Property Purchases
Date: September 12, 2025
Host: Real Estate Without Borders
Guest: Lawrence Yun, Chief Economist, National Association of Realtors (NAR)

Overview

This episode features an in-depth discussion with Lawrence Yun, Chief Economist of the National Association of Realtors (NAR), on the recent trends in foreign capital and international buyers in the U.S. real estate market. Lawrence shares insights from NAR's latest annual report, focusing on the evolving composition of foreign buyers, their motivations, recent purchasing trends, and the broader impact of global economic and political climates on U.S. and international property markets. The conversation provides valuable perspectives for American investors considering international diversification, as well as anyone tracking the ebb and flow of global real estate capital.

Key Discussion Points & Insights

1. State of Foreign Investment in U.S. Real Estate

• Post-COVID Recovery, But Not at Peak Levels

  • The volume of foreign real estate transactions in the U.S. has shown a recent recovery, but remains well below pre-COVID or peak years (2016–17).
    • "We are just essentially recovering from very low points." — Lawrence Yun [00:23]

• Cash Dominance Among International Buyers

  • International buyers are far more likely to transact in cash than domestic buyers, suggesting both significant wealth or the relative simplicity of all-cash deals for foreign nationals.
    • "Foreign buyers, they tend to be more cash compared to domestic buyers... implying that foreign buyers, whether they are much wealthier, do not need mortgages..." — Lawrence Yun [01:17]

• Key Types of Foreign Buyers

  • "Pure international" (non-resident) buyers and recent immigrants (those in the U.S. for two years or less) are the primary segments analyzed.

2. Changing Composition of Foreign Buyers

• Leading Source Countries

  • China (incl. Taiwan and Hong Kong) and Canada remain the most active countries of origin for buyers.
    • "It spanned two countries, China and Canada... we are considering Taiwan, Hong Kong as well." — Lawrence Yun [02:29]
  • Chinese Capital Motivations: Seeking safe havens, sometimes due to lack of trust in their own government and desire to park money in jurisdictions with strong property rights.
    • "Maybe there is a real estate need, but even without the real estate need, just park the money where they consider to be safe." — Lawrence Yun [02:57]
  • Canadian Buyers: Predominantly purchasing for lifestyle (i.e., escaping winter), especially in Florida, Arizona, and Nevada.

• Trends and Emerging Sources

  • Increasing activity from Latin America, especially Mexico, and fluctuating participation from European countries.
    • "I think there was an increase in, in buyers from Latin America and especially Mexico if, if I'm correct on that one." — Host [06:02]
  • India is flagged as a potential next major source due to strong economic performance and growing middle/upper class.
    • "I think one country to look out for is India... there will be quite a growth potential from people from India." — Lawrence Yun [07:47]
  • Middle Eastern oil-rich nations (e.g., UAE) are also expected to increase in presence, both as sellers of Dubai real estate and as global property buyers.
    • "You may begin to see more presence among the Arab countries able to buy here in the U.S." — Lawrence Yun [09:38]

3. Buyer Motivations & Market Dynamics

• Push-Pull Factors

  • Geopolitical instability in home countries (e.g., Venezuela) often drives capital into U.S. and Canadian real estate, perceived as safer havens.
    • "Anytime there's political turmoil in other countries, sometimes they want to park in what they perceive to be more risk free areas." — Lawrence Yun [10:24]

• Investment vs. Lifestyle

  • Direct usage is still the dominant motivator; most foreign buyers want to use the properties for vacation, part-time residence ("snowbirds"), or family.
    • "The fact that people are buying real estate, I think is partly due to, or primarily due to the usage." — Lawrence Yun [19:25]
  • Secondary motivation: Renting (e.g., Airbnb) to recoup costs when not in use.
    • "They realized they don't utilize all the time. So why don't they rent it out?" — Lawrence Yun [19:58]
  • Pure investment (e.g., large institutional buying) is a smaller share than sometimes presumed by the public.

• Influence of Currency and Economic Trends

  • Forex considerations sometimes play a role, e.g., foreign buyers hedging against domestic currency risk by purchasing in USD-denominated assets.
    • "If people are bullish on the US economy and they want to get exposure to USD... it might actually be a period where we'll see more purchases, especially if prices are rolling over." — Host [24:40]
  • U.S. technology sector performance and AI growth foster further bullishness on American assets.

4. Notable Regional Trends

• Florida and the Canadian Buyer Shift

  • Supply/demand imbalance in Florida due to regulatory changes (condo laws requiring hefty maintenance funds) is causing some Canadian owners to sell.
    • "Condo owners of older properties may have to cut a check for $10,000 or $20,000 and they don't have that extra cash... they sell the property." — Lawrence Yun [03:58]
  • Declining air travel between Canada and the U.S. seen as indirect evidence of cooling Canadian sentiment toward U.S. properties.

• Re-Allocation of Capital

  • Signs that Canadians who exit Florida are redirecting money to other vacation markets, notably Mexico and Central America.
    • "I definitely seen an uptick... relocating that capital to Mexico for the purpose of their vacation property as it used to be in Florida." — Co-host [16:38]
    • "The Canadians are selling the US and then purchasing in Mexico." — Lawrence Yun [17:20]

5. Market Data & Methodology

• How NAR Tracks International Buyers
  • NAR surveys its realtor members annually, asking about international clients (both successful and unsuccessful) and details of those transactions.
    • "We ask realtors to say that have you had a foreign client in the past 12 months? ...Who are they? Where are you selling the property?" — Lawrence Yun [12:20]
  • Candid about limitations: sampling errors, dependency on survey response, and granularity challenges.
    • "All the data, I think one goes into more granular basis, take it with a grain of salt." — Lawrence Yun [12:20]
  • Foreign seller data is a newer focus; trends still emerging.

6. Industry and Demographic Shifts

• Generational Change in International Investors

  • Anecdotal evidence of a younger, wealthier demographic increasingly considering global real estate investing, possibly due to more available information.
    • "It’s becoming less of a big scary monster to invest internationally because of all the access to information." — Co-host [22:55]

• The Information Advantage

  • The internet and access to data are lowering barriers and boosting investor confidence in international real estate.
    • "More information means more confidence and you need to have confidence to purchase." — Lawrence Yun [23:27]

Notable Quotes & Memorable Moments

• On Chinese & Canadian Buyers:

  • "Maybe there is a real estate need, but even without the real estate need, [Chinese buyers] just park the money where they consider to be safe." — Lawrence Yun [02:57]

• On Capital Flight Due to Turmoil:

  • "Anytime there's political turmoil in other countries, sometimes they want to park in what they perceive to be more risk free areas." — Lawrence Yun [10:24]

• On Methodology:

  • "On the more accurate level one can feel more confident on the direction... But on the more granular basis, take it with a grain of salt." — Lawrence Yun [12:20]

• On Dual Usage of Properties:

  • "They want to use the property maybe, you know, three months out of the year, but other time are they going to leave it vacant or are they going to try to recover some bonus money out of it by renting it out?" — Lawrence Yun [19:25]

• On Future Trends:

  • "I think there will be quite a growth potential from people from India." — Lawrence Yun [07:47]

• On the Impact of Information:

  • "More information means more confidence and you need to have confidence to purchase." — Lawrence Yun [23:27]

Important Timestamps

• [00:23] – Overview of NAR’s annual report and recovery from COVID lows
• [01:17] – Cash purchases dominate among foreign buyers
• [02:29] – China and Canada’s role in U.S. real estate
• [03:58] – Condo law changes and Canadian selling in Florida
• [05:13] – Geographic preferences: Canadians in Florida, Chinese in California, Germans on Florida’s west coast
• [06:40] – Growth from Latin America, India, and other emerging sources
• [10:24] – Political turmoil as a driver for capital flight
• [12:20] – Methodology behind NAR’s report
• [16:38] – Canadian capital potentially shifting to Mexico
• [19:25] – Buyer intentions: lifestyle, dual usage, limited pure investment
• [22:55] – The role of increased information in enabling global investing
• [24:05] – Currency and economic cycles influencing foreign interest
• [25:42] – Where to access the NAR International Home Buyer report

Final Takeaways

• Foreign buyer activity in the U.S. is rebounding, but still beneath its historical highs.
• Canada and China remain the most important source countries, but watch India and the Middle East in coming years.
• Geopolitical and domestic turmoil often spurs demand for U.S. properties, viewed as a safe haven.
• Shifts in local regulation (e.g., Florida condo laws) and currency strength/direction are key variables.
• Most foreign buyers are motivated by usage rather than speculation—investment is often secondary.
• Growing access to information is demystifying global real estate for a new generation of investors.
• For more detail, search for "NAR Research International Home Buyer."

This summary provides a comprehensive yet accessible account of the episode, highlighting insights useful for investors, agents, and those interested in the dynamics of international real estate markets.