Cash-paying foreign investors dominate weak U.S. housing market amid affordability concerns

An increase of international buyers, especially from China, chose homes in the United States during the past year as American families continue to face the challenges of installation in the market.

The number of current houses bought by foreign buyers from April 2024 to March 2025 increased for the first time since 2017, according to a recently issued report by the National Association of Real Estate Bidgers (NAR). The report highlights that Chinese buyers represent the largest part of foreign investors in terms of total spending and transactions, and buying $ 13.7 billion from current homes – an increase of 83 % over the previous year.

This is a significant increase in purchases of $ 7.5 billion in the previous year, according to NAR. These buyers also have the highest average purchase price at $ 1.2 million, with the focus of most purchases in huge prices. For example, about 36 % of Chinese buyers purchased a property in California, while he bought 9 % real estate in New York, according to the report.

The crisis of the ability to afford US housing costs, which makes it especially difficult for American buyers and sellers to enter the market, creates more opportunities for buyers abroad, according to real estate experts.

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Nearly 78,100 properties have been bought by foreign buyers, representing a 44 % increase from the previous year, although it is still the second level since NAR started estimating foreign buyer purchases in 2009.

While foreign buyers do not necessarily outperform American buyers, they benefit from poor demand in the market because mortgage rates remain one of the largest barriers that prevent buyers and sellers from entering RealTor.com.

Real estate experts say the ability to afford the costs of housing in the United States creates more opportunities for buyers abroad. (Steve Pfost / Newsday RM via Getty Images) / Getty Images)

“If you look at this NAR report, more than half of these international buyers are doing cash purchases, because they can do so. They are rich international people looking at the market in the United States at the present time and see that there is not much demand for homes in the United States,” said Berner.

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The average firm mortgage price for 30 years is 6.67 %, according to the mortgage buyer Freddy Mac. This is more than twice the rate of approximately 3 % in December 2021, while highlighting the increasing pressure that Americans face at borrowing costs.

While foreign buyers do not necessarily outperform American buyers, they benefit from poor demand in the market. (Saul Loeb / AFP via Getty Images) / Getty Images)

Moreover, home prices reach record levels. At the level of the country, prices have increased by 4 % on an annual basis and 60 % amazing since 2019, according to the Joint Center for Housing Studies in the country’s housing report. In contrast, the cost of one typical family home paid $ 412,000 in 2024.

However, if the payment is cash, experts say it is a suitable time for purchase, regardless of whether it is an international or American buyer, since they wander around high borrowing rates.

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Burner said that the benefit of international buyers is a welcome entertainment for some sellers amid slow sales activity.

“It helps to eat a kind of stock that would spoil,” Berner said, adding that RealTor.com witnessed an increase in anomalous activity because “people are just a surrender to sell their house.”

One of the experts told Fox Business that attention from international buyers is a welcome entertainment for some sellers amid slow sales activity. (David Paul Morris / Bloomberg via Getti Imachurs / Getty Pictures)

The deletion exceeded the total stock gains in May, when it jumped by 35 % so far and 47 % year on an annual basis, according to the June’s REALTOR.com report. Relatively, the active menu growth was 28.4 % and 31.5 %, respectively.