Summary of Key Points
Interest from overseas buyers in U.S. real estate has significantly declined, with both the total amount and number of purchases by international buyers falling sharply year-on-year for 2025-2026 (amount down 19.1% to $45.3 billion, and number down 14% to 67,100 units, the lowest level since tracking began in 2009). The obstacle is not a lack of funds (the proportion of international buyers paying in full is 48%, compared to 28% for domestic buyers in the U.S.), but rather issues such as market policies, reduced immigration, and fewer international students. At the same time, wealthy American families are taking the opposite approach, with more purchasing property overseas, driven by a weakening confidence in the dollar and a desire to diversify their assets.
I. How "Cold" Are Overseas Buyers for U.S. Real Estate?
The data speaks clearly: In the past year, international buyers spent nearly a fifth less on buying existing U.S. homes ($45.3 billion compared to approximately $56 billion last year) and purchased 14% fewer units (67,100 units), the lowest level since the 2009 financial crisis. Even a slight depreciation of the dollar (which would have increased the value of their money) has not encouraged them to buy more—this breaks the common notion that a weaker exchange rate stimulates overseas property purchases.
II. It's Not About Lack of Funds; These Hindrances Are Stopping Buyers
The high proportion of international buyers paying in full (48%) indicates that money is not the issue. The real obstacles are threefold:
1. Difficulty in Finding Suitable Properties: 33% of agents reported that clients gave up due to the inability to find their desired properties; 28% cited "high housing prices" (even with a favorable exchange rate, U.S. housing costs still exceeded expectations).
2. Policy and Legal Challenges: For example, New York City imposes additional taxes on luxury homes that are not the primary residence, and the disclosure of information about nearly 960,000 properties has been criticized as "stalking," deterring overseas buyers. Additionally, 19% mentioned issues with immigration laws.
3. Reduced Immigration and Student Numbers: Immigration was a key driving force for property purchases, but the number of new green card recipients in the U.S. decreased by 2.7% in 2025, and the number of cases processed by immigration authorities plummeted by 41% in 2026, with a 50% increase in backlogs; the number of new international students also fell significantly (20% for undergraduate programs and 24% for graduate programs), reducing the demand from parents to buy homes for their children.
III. The Motives Behind Overseas Buyers: More Investment or Leisure
Unlike domestic buyers in the U.S. (17% who purchase for investment/leisure purposes), half of international buyers do so for vacation, rental, or both. For instance, a client from Singapore bought a property in Northern California, which they rarely use and entrusted to local management; the property even appreciated by 10-12% in the past year. During times of instability in the Middle East, people from Gulf countries buy properties in the U.S. as a safe investment. There has also been a noticeable increase in Indian buyers, as well as entrepreneurs purchasing homes in Washington to avoid government regulations.
IV. American Wealthy Families Are "Voting with Their Feet": Moving Overseas
Not only are there fewer overseas buyers, but wealthy American families are also moving abroad:
- 10% of agents said they have U.S. clients seeking properties overseas; these buyers are even more affluent than international ones (52% pay in full compared to 48%) and prefer destinations like Mexico, Portugal, and Canada.
- The number of Americans applying for overseas residency doubled in 2025, and family offices are beginning to diversify their assets across locations such as London, Dubai, and Singapore to avoid relying solely on the U.S. market.
V. Underlying Reasons: Weakening Confidence in the Dollar
The reason for these changes is a diminishing belief in the dollar as a safe investment:
- 65% of family offices expect confidence in the dollar to weaken in the coming year, compared to only 6% who believe it will strengthen; 47% feel they hold too much dollars and wish to diversify into euros and Swiss francs.
- Even domestic family offices are 52% bearish on the dollar, but interestingly, 67% of them are not immediately adjusting their asset allocation (possibly still waiting and observing).
- There is a trend towards "diversification of jurisdictions"—two-thirds of family offices spread their assets across at least three different countries/regions to reduce risk.
In Conclusion: The attractiveness of U.S. real estate for overseas buyers has declined, due to both market policies and global shifts in asset allocation. People no longer view U.S. properties as a guaranteed investment; instead, they prioritize risk diversification and a more balanced portfolio.