International Demand Shifts in U.S. Real Estate: Canadian Buyers Decline as Texas Emerges

International homebuyer trends show a decline in Canadian interest while Texas gains prominence. Miami remains a favorite, but cities like Austin and San Antonio are emerging as new hotspots for foreign investors.

In a notable shift in the landscape of U.S. real estate, the first quarter of 2025 has shown that international homebuyers are increasingly becoming a significant factor in housing demand.

According to a recent report from Realtor.com, 1.9% of online traffic to their site came from international shoppers, up from 1.7% in the same period last year.

This increase suggests a growing interest from foreign investors in the American housing market, despite a decline in demand from Canadian buyers, traditionally the largest group of international home shoppers.

The report highlights a critical turning point: while Canadian buyers accounted for a staggering 40.7% of international traffic to U.S. real estate listings in the first quarter of 2024, that figure plummeted to 34.7% in 2025.

This decline has raised eyebrows among industry analysts, particularly as they consider the implications of recent trade policies and economic factors affecting cross-border real estate interest.

Danielle Hale, the chief economist at Realtor.com, remarked on the significance of these changes, stating, “While international demand for U.S. housing was a growing share of total demand, the drop from potential Canadian shoppers underscores the impact of recent trade policies on cross-border real estate interest.”

Despite the decrease in Canadian shoppers, they still lead the international pack, with other countries like the United Kingdom (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%) following closely behind.

Miami emerged as the top destination for international buyers, capturing an impressive 8.7% of that market.

Other cities like New York, Los Angeles, and Orlando also proved to be attractive options for foreign investors.

Miami’s continued appeal can be attributed to its vibrant culture, favorable climate, and robust economic opportunities, making it a perennial favorite among those looking to invest in U.S. real estate.

The report also reveals the shifting preferences of Canadian buyers, who have shown a strong inclination towards Florida markets.

In fact, among the top 20 markets for international home shoppers, Canadian buyers made up 59.6% of international demand in Naples, Florida, and 59.1% in Cape Coral.

This trend reflects a broader desire among Canadians to invest in warmer climates, likely spurred by lifestyle choices and the appeal of Florida’s tax structure.

Interestingly, the data indicates that while Mexican buyers’ interest in U.S. real estate has seen a slight decline, their preferences remain concentrated near the U.S.-Mexico border.

Cities such as San Diego, San Antonio, Dallas, El Paso, and Houston are seeing significant interest due to their proximity and established cultural ties.

Hale noted that “Mexican buyers likely tend to favor U.S. border cities because of their proximity to home, strong cultural and language connections, established family and business networks, and easier access to education, healthcare and cross-border travel—making these areas both practical and familiar for living and investment.”

What is particularly striking is the growing interest in Texas markets among international buyers.

For the first time, Austin and San Antonio have broken into the top 20 metros for international homebuyers, indicating a noteworthy regional shift.

This change is encouraging for Texas real estate, especially as the state continues to attract companies and individuals drawn by its favorable economic conditions, including a lower cost of living and absence of state income tax.

The top-ranking cities for international buyers reflect this trend, with Dallas climbing three spots and Houston securing the sixth position overall.

These shifts not only signify a change in where international buyers are looking but also suggest a potential future where Texas could rival traditional hotspots like California and New York for foreign investment in real estate.

As we look ahead, the implications of these trends are profound.

The shifting preferences of international homebuyers signal not just a change in demand but also an evolving narrative around U.S. real estate.

With economic factors and trade policies influencing buyer behavior, both domestic and international markets must adapt to an increasingly interconnected world.

The first quarter of 2025 has set the stage for ongoing developments in the housing market, and it remains to be seen how these trends will unfold in the coming months.

As American cities continue to attract global interest, the conversation around housing will only grow more complex and intriguing.