12 Years of Foreign Purchases
The National Association of Realtors has tracked foreign buyer activity annually since 2009. Foreign purchases peaked at $153 billion in 2016-2017 before declining sharply. While current levels are lower, foreign buyers still spent $56 billion in the most recent period:[1]
Foreign Buyer Purchases by Year (Dollar Volume in Billions)
Source: National Association of Realtors, International Transactions in U.S. Residential Real Estate[1]
The Cash Advantage
The single most important competitive advantage foreign buyers hold is cash. When 47% of foreign buyers pay all cash - compared to 28% of domestic buyers - the outcome in competitive markets is predictable:[1]
Speed
Cash transactions close in 7 - 14 days. Mortgage-dependent buyers require 30 - 45 days for appraisal, underwriting, and closing. Sellers overwhelmingly prefer faster, more certain transactions.
Certainty
Cash offers have no financing contingency - they cannot fall through due to appraisal shortfalls or mortgage denial. A cash offer at asking price often beats a higher financed offer simply because it is guaranteed to close.
Price Inflation
Cash buyers can bid above appraised value without concern, since they are not subject to lender appraisal requirements. This pushes prices beyond what the market fundamentals support, creating artificial price floors that exclude mortgage-dependent families.
Who Is Buying?
Five countries account for the majority of foreign residential purchases in the United States. China leads in dollar volume, while Canada and Mexico dominate in proximity-driven markets:[1]
| Country | Volume (Billions)[1] | % All Cash | Geographic Focus |
|---|---|---|---|
| China | $13.7B | 50% | highest median price; 36% in CA |
| Canada | $6.2B | 52% | concentrated in border states & FL |
| Mexico | $4.4B | 37% | concentrated in TX, AZ, CA |
| India | $2.2B | 31% | concentrated in TX, NJ, CA |
| United Kingdom | $2B | 45% | concentrated in FL, NY |
Source: NAR International Transactions Report, 2024 - 2025[1]
Chinese buyers have the highest median purchase price ($759,600) and are most likely to purchase for investment purposes rather than primary residence.[1] Half of Chinese buyers pay entirely in cash - capital that often originates overseas and enters the U.S. housing market as a safe-haven investment.
This is not a marginal phenomenon. Florida alone accounts for 21% of all foreign home purchases in the United States - the single largest destination for foreign capital in the American housing market.[1]
Where Foreign Buyers Concentrate
Foreign buying is not evenly distributed. It concentrates in states that are already facing affordability pressure - compounding the problem for local residents:[1]
| State | Share of Foreign Purchases[1] | Primary Buyer Origins |
|---|---|---|
| Florida | 21% | Top destination since 2009 |
| California | 15% | Chinese and Indian buyers |
| Texas | 10% | Mexican and Indian buyers |
| New York | 7% | Chinese and Canadian buyers |
| Arizona | 5% | Canadian and Mexican buyers |
| New Jersey | 4% | Indian and Chinese buyers |
Source: NAR International Transactions Report[1]
Compounding Effect
The six states with the highest foreign buyer concentration - Florida, California, Texas, New York, Arizona, and New Jersey - account for 62% of all foreign purchases.[1] These are also among the states with the most acute housing affordability challenges. Foreign capital does not cause the crisis alone, but it intensifies it precisely where conditions are already most difficult for American families.
Investment Properties vs. Primary Residences
Not all foreign buyers intend to live in the homes they purchase. According to the NAR data, a significant share of foreign purchases serve as investment vehicles or vacation properties rather than primary residences:[1]
Source: NAR International Transactions Report, 2024 - 2025[1]
Half of all foreign purchases are not for primary residence. These homes are held as financial assets - appreciating in value, generating rental income, or sitting vacant - while American families compete for limited supply in the same markets.
Temporary Visa Holders in the Housing Market
The NAR data distinguishes between two types of foreign buyers: non-residents living abroad, and resident foreigners already living in the U.S. on work visas or as recent immigrants. The breakdown reveals that the majority of foreign purchases come from people already in the country:[1]
Visa holders and recent immigrants living in the U.S.
$26.9B (56% of transactions)
Foreign nationals living abroad
$29.1B (44% of transactions)
Source: NAR International Transactions Report, 2024 - 2025[1]
More than half of all foreign home purchases are made by non-citizens already residing in the United States - many on temporary work visas such as the H-1B. There are currently over 600,000 active H-1B workers in the country,[7] and including H-4 dependent family members, these households represent an estimated 750,000 to 900,000 individuals. There are no federal restrictions preventing temporary visa holders from purchasing residential property.
This creates an unusual dynamic: workers on temporary visas - with no guarantee of permanent residence - compete for homes alongside American families in the same markets. Indian nationals, who represent the largest share of H-1B visa holders, purchased approximately 4,700 homes worth $2.2 billion in 2024 - 2025.[1] While this figure includes all Indian buyers regardless of visa status, the overlap with the H-1B population is significant: India accounts for over 70% of all H-1B approvals.[7]
FHA Loan Eligibility Eliminated for Visa Holders (2025)
In May 2025, HUD eliminated FHA loan eligibility for all non-permanent residents, including H-1B, L-1, and other temporary visa holders.[8] Only U.S. citizens and Green Card holders may now access FHA-insured mortgages.
The impact was immediate: non-permanent residents represented 3.8% of FHA mortgage locks in September 2024. By September 2025, that figure was 0.2% - a 95% decline.[8]
Conventional mortgages remain available to H-1B holders, but with stricter requirements: 15 - 20% down payments (vs. 3.5% for FHA), stronger credit history, and extensive employment documentation. Some continue to pay all cash.
No government agency tracks home purchases by specific visa type.[9] The NAR groups all resident visa holders together. USCIS does not collect homeownership data. The Census Bureau does not disaggregate by visa classification. This data gap makes it impossible to determine exactly how many H-1B holders own homes - but it also means there is no mechanism to assess the impact of temporary worker homeownership on local housing markets.
The Affordability and Immigration Act of 2026 addresses this by establishing a clear, enforceable standard: permanent resident status (Green Card) as the minimum requirement for residential property purchase. This applies equally to all non-permanent residents, regardless of visa type.
How Other Countries Respond
The United States is an outlier among developed nations. Most comparable economies have recognized that unrestricted foreign residential purchases distort housing markets and have enacted restrictions:
Canada
Prohibition on Foreign Buyers Act (2023)Non-residents banned from purchasing residential property for 2 years, extended through 2027. Penalties include fines up to CAD $10,000 and forced sale.
Result: Housing activity from foreign buyers dropped to near-zero in restricted markets.
Australia
Foreign Investment Review Board (FIRB) restrictionsNon-residents may only purchase new construction, not existing homes. Requires government approval. Foreign buyer surcharges of 7 - 8% in most states, plus annual vacancy fees.
Result: Foreign purchases of existing homes effectively eliminated. New construction investment continues.
New Zealand
Overseas Investment Amendment Act (2018)Non-residents banned from purchasing existing residential property. Exemptions for Australians and Singaporeans under trade agreements.
Result: Foreign buyer share dropped from 3.3% to under 0.5% within one year of implementation.
Switzerland
Lex Koller (Federal Act on the Acquisition of Real Estate by Persons Abroad)Non-residents restricted to purchasing only in designated tourist zones, with cantonal quotas. Strict limits on property size and location.
Result: Foreign ownership concentrated in resort areas; primary housing markets largely protected.
These restrictions have not caused the economic disruptions critics predicted. In each case, the domestic housing market continued to function normally - often with improved affordability for local residents. Foreign investment in commercial real estate and new construction typically continued, as restrictions targeted existing residential properties.[2]
The evidence from multiple countries demonstrates that foreign buyer restrictions are feasible, enforceable, and effective - without the catastrophic consequences that opponents warn about.
Why the U.S. Has No Restrictions
The absence of federal restrictions on foreign residential purchases in the United States reflects a combination of factors:
- •Real estate industry lobbying: The real estate industry benefits from all transactions regardless of buyer origin. Foreign buyers are often preferred by agents because they tend to purchase at higher price points and pay all cash, resulting in faster, higher-commission sales.
- •Historical openness: The U.S. has traditionally maintained open capital markets as a matter of economic policy. Restricting real estate purchases by foreign nationals has not been a political priority despite growing affordability concerns.
- •Data opacity: Unlike countries with national property registries, the U.S. lacks comprehensive data on foreign ownership. Shell companies, LLCs, and trust structures make it difficult to identify the true beneficial owners of residential property - obscuring the full scope of the issue.[3]
- •State-level fragmentation: Property law in the U.S. is primarily a state matter. While some states have imposed limited restrictions on foreign purchases of agricultural land, no comprehensive framework for residential property exists at the federal level.
Policy Response
The Affordability and Immigration Act of 2026 proposes ending foreign ownership of residential property through a clear, enforceable framework:
- •Prohibition: Non-citizens may not purchase residential real estate in the United States
- •Minimum requirement: Green Card (permanent resident status) required for residential property purchase
- •2-year divestment: Existing foreign owners must sell within 2 years, with orderly transition provisions
- •Not aimed at immigrants: U.S. citizens living abroad and individuals actively pursuing permanent residence are not affected
- •Beneficial ownership rules: Aggregate ownership through LLCs, trusts, and shell companies to prevent workarounds
The requirement is permanent residency - not citizenship. Anyone committed to living in the United States may purchase a home. The restriction targets absentee foreign investors and capital flight, not immigrants building lives in American communities.