Real Estate Without Borders: Episode Summary Title: Updated List: The Top 5 Foreign Investors in US Real Estate
Release Date: July 16, 2025
Host: Real Estate Without Borders (Dan & Dave)

Introduction

In this insightful episode of Real Estate Without Borders, hosts Dan and Dave delve into the latest findings from the 2025 International Transactions in US Residential Real Estate Report by the National Association of Realtors (NAR). The discussion centers around the surge in foreign investments in U.S. real estate, identifying the top five foreign investor nations, their preferred U.S. destinations, purchasing behaviors, and the broader implications for the American real estate market.

Surge in Foreign Investments

The episode opens with a striking statistic highlighting a 43% increase in foreign buyers of U.S. real estate from 2024 to 2025, as reported by NAR.

Dan (00:00): "There was a 43% increase in foreign buyers of U.S. real estate from 2024 to 2025."

However, Dan clarifies that this impressive growth stems from a previously low base, with foreign purchases totaling 78,000 homes in 2025, compared to 54,000 the previous year. For context, the peak was 285,000 homes in 2017.

Dan (02:48): "This year, China bought 13 billion, and Canada only bought 6.2 billion."

Top Five Foreign Investors in US Real Estate

1. China

China currently stands as the largest foreign investor in U.S. real estate, holding 15% of the top 10 countries' share.

• Dollar Volume: Increased from $7 billion in 2024 to $13 billion in 2025.
• Number of Homes Purchased: Rose from 11,700 to 12,500.

Preferred U.S. States:

• California (36%)
• Maryland (9%)
• New York (9%)
• Hawaii (5%)
• Georgia, Idaho, Louisiana, North Carolina, Washington (4%)
• Arizona, Delaware, Florida (3%)

Dan (03:24): "China is buying the most real estate in the US right now as of 2025."

2. Canada

Canada closely follows China with a 14% share.

• Dollar Volume: Grew marginally from $5.9 billion to $6.2 billion.
• Number of Homes Purchased: From 10,900 to 11,000.

Preferred U.S. States:

• Florida (48%)
• Arizona (12%)
• California (9%)
• New York (5%)
• Texas, Louisiana, South Carolina (4%)
• Michigan, Pennsylvania, Alabama, Arkansas, Colorado, Missouri (5%)

Dave (07:36): "Canadians are the biggest sellers of US Property."

3. Mexico

Mexican investors hold the third position with a significant inclination towards Texas.

• Dollar Volume: Increased, details unspecified.
• Number of Homes Purchased: High concentration in Texas at 40%.

Preferred U.S. States:

• Texas (40%)
• Arizona (17%)
• Michigan (5%)
• Pennsylvania, Alabama, Arkansas, Colorado, Missouri (5%)
• South Carolina, Illinois (2%)

Dan (12:02): "Mexican foreign investors in U.S. real estate are buying predominantly in Texas."

4. India

India is emerging as a major investor, potentially set to surpass others in the next decade.

• Dollar Volume & Purchase Numbers: Balanced distribution with 13% across Texas, California, Arizona, and Indiana.

Preferred U.S. States:

• Texas, California, Arizona, Indiana (13% each)

Dan (14:32): "India is just, it's the next up and coming economy."

5. United Kingdom

The UK ranks fifth, with a strong preference for Florida.

• Dollar Volume & Purchase Numbers: Details indicate increased activity.

Preferred U.S. States:

• Florida (45%)
• California (18%)
• Mississippi (14%)
• Arizona (9%)

Dave (20:02): "They have a citizenship by investment program which attracts many investors."

Foreign Buyers' Purchasing Patterns

All-Cash Purchases

Foreign buyers are more inclined to purchase properties with all cash compared to domestic buyers.

• Foreign Buyers: 57% all-cash
• Chinese Buyers: 71% all-cash
• Canadian Buyers: 57% all-cash
• Mexican Buyers: 49% all-cash
• Indian Buyers: 43% all-cash
• U.S. Buyers: 28% all-cash

Dan (32:54): "28% of American buyers buy with all cash, whereas foreign buyers have significantly higher percentages."

Property Types and Usage

A significant portion of foreign investments are directed towards specific property types and intended uses.

• Property Types:
  • Single Family Detached (60%)
  • Condos (15%)
  • Townhouses (14%)
  • Residential Land (5%)
  • Others (3%)

Dan (35:05): "For all foreign buyers in the U.S., single-family detached homes account for over 60%."

• Usage:
  • Vacation Homes or Rentals (47%)
  • Investment (33%)
  • Primary Residence (22%)
  • Both Vacation and Rental (20%)

Dave (43:17): "The biggest reason for Americans looking abroad is vacation homes."

Challenges and Failed Transactions

A notable 69% of foreign investors decided not to purchase U.S. properties in 2025.

Top Reasons for Not Purchasing:

1. Could Not Find a Property (Top Reason)
2. Cost of the Property
3. Couldn’t Get Financing
4. Immigration Laws (18%)
5. Condo Maintenance Fees (16%)
6. Insurance Costs (15%)
7. Property Taxes
8. Exchange Rate Exposure
9. US Tax Laws
10. Loss of Home Country Benefits

Dave (39:40): "It's crazy that the biggest reason someone didn't buy is because they couldn't find a property."

Selling Properties in the U.S. by Foreign Investors

There has been a significant increase in foreign investors selling U.S. properties, particularly Canadians.

• Percentage of Realtors Reporting Sales: 20% had international clients who sold properties.
• Top States for Selling:
  • Florida (23%)
  • California (14%)

Dan (41:34): "Canadian investors are the largest sellers of U.S. properties."

Reasons for Selling:

• Retirement Funding
• Portfolio Unwinding
• Political Issues

Americans Investing Abroad

16% of U.S. Realtors reported that their clients are looking to purchase properties outside the U.S.

Primary Reasons:

1. Vacation Homes (25%)
2. Rental Properties (24%)
3. Primary Residences (22%)
4. Both Vacation and Rental (20%)

Top Destinations for U.S. Investors:

• Mexico (8%)
• Grenada (7%)
• Canada (6%)
• Portugal (5%)
• UK, Australia, Costa Rica (4%)
• Dominican Republic, Italy, Spain (3%)

Dave (44:09): "Grenada is gaining traction due to its citizenship by investment program."

Impact of Foreign Investment on Local Markets

The hosts discuss the double-edged sword nature of foreign investments:

• Positive Impacts:

  • Economic Growth: Increased capital circulation, higher taxes, improved infrastructure, more jobs.
  • Property Value Increases: Especially in high-demand areas.

• Negative Perceptions:

  • Housing Affordability: Foreign investors often purchase higher-end properties, leading to price inflations.
  • Gentrification: Local residents may feel displaced or priced out.

Dan (26:38): "It's a double-edged sword, bringing both economic benefits and challenges in affordability."

Future Predictions and Closing Thoughts

Dan and Dave emphasize the importance of responsible immigration policies to sustain economic growth without exacerbating housing market issues.

Dan (29:46): "Responsible immigration policies can lead to good outcomes."

They also highlight Italy's potential to become a major player in the foreign real estate market, predicting significant growth in the next decade.

Dave (36:14): "I think Italy has the best bull case for anywhere on earth right now."

The episode concludes with a call for listener engagement, inviting suggestions for future topics and guest experts to enrich the show's content.

Dan (50:03): "If you know anybody in any country with a good real estate scene, connect us. We want to learn and share."

Key Takeaways

• Foreign investment in U.S. real estate is growing, with China, Canada, Mexico, India, and the UK leading the charge.
• Preferred states among foreign buyers include California, Florida, Texas, and Arizona, each favored for unique regional advantages.
• Foreign buyers tend to pay higher median prices and often purchase properties with all cash, impacting local market dynamics.
• Challenges such as property availability and cost remain significant barriers for foreign investors.
• Foreign sellers, especially Canadians, are increasingly divesting from U.S. properties, influenced by economic and political factors.
• U.S. investors are increasingly looking abroad for vacation homes, rentals, and primary residences, with Mexico and Grenada emerging as top destinations.
• The impact of foreign investment is multifaceted, offering both economic benefits and challenges related to housing affordability and community dynamics.

Notable Quotes

• Dan (00:00): "There was a 43% increase in foreign buyers of U.S. real estate from 2024 to 2025."
• Dave (07:36): "Canadians are the biggest sellers of US Property."
• Dave (39:40): "It's crazy that the biggest reason someone didn't buy is because they couldn't find a property."
• Dan (26:38): "It's a double-edged sword, bringing both economic benefits and challenges in affordability."
• Dan (50:03): "If you know anybody in any country with a good real estate scene, connect us. We want to learn and share."

Conclusion

This episode of Real Estate Without Borders provides a comprehensive analysis of the current landscape of foreign investments in U.S. real estate. By uncovering the leading investor nations, their investment patterns, and the resultant market implications, Dan and Dave equip listeners with valuable insights to navigate the global property market. The discussion also underscores the importance of balancing economic growth with sustainable housing policies to ensure a thriving and inclusive real estate environment.