Foreigners Are Snapping Up Homes in the US— Here's Why You Should Too

The American housing market has been called many things in 2025—expensive, competitive, "unaffordable". But here’s one label you probably haven’t heard: undervalued. That’s exactly how thousands of international buyers are looking at it right now. While many Americans are sitting on the sidelines, waiting for the “perfect moment” to buy, foreign investors are quietly seizing the lull in domestic demand to scoop up U.S. real estate.

It’s a striking contrast from the average American. To the average American buyer, today’s market feels difficult. Mortgage rates are higher than the pandemic lows, prices haven’t fallen enough in most parts of the county to offset affordability challenges, and headlines continue to warn of an “affordability crisis.” However, to investors abroad, the same conditions look like opportunity: less competition, strong rental demand, and the enduring stability of American real estate.

The Numbers Don’t Lie

According to the National Association of Realtors, sales of existing U.S. real estate to non-U.S. citizens hit $56 billion in the year through March 2025—a 33% jump from the year before. More than 78,000 homes changed hands to foreign buyers, marking the first annual increase in eight years. This resurgence comes at a time when many Americans have been held back by elevated mortgage rates and high home prices.

Why the divergence? Most foreign buyers don’t rely on U.S. mortgage financing. Nearly half pay cash. They’re not deterred by 7% mortgage rates because those rates don’t apply to them. And while locals hesitate, international investors are buying properties for the same reason they always have: America remains one of the safest, most profitable places to invest in real estate.

Where Foreginers Are Buying Homes

Florida continues to lead the pack, but it’s not alone. California, Texas, Arizona, and New York also rank among the top destinations for international buyers. In fact, Texas has become a particularly attractive market for global investors: strong population growth, a business-friendly economy, and because home prices have corrected since 2022, there is relative affordability compared to coastal cities, which makes it a standout.

Investors are picking up everything from suburban rentals in Dallas and Houston to student housing near universities and even vacation homes in Austin and San Antonio. Many of these purchases are designed to generate rental income, and with so many Americans renting instead of buying, demand for rentals remains strong.

What Foreign Buyers See That Americans Don’t

To someone in Montreal, Tokyo, Sydney, or London, U.S. real estate looks like a bargain compared to home. A $500,000 house in a major city in Texas like Austin or Houston that has a yard, garage, and rental potential might be half the cost of a small flat in Toronto or London. Factor in the dollar’s relative weakness and high rental demand, and the equation looks even better.

International investors also understand something Americans often forget: real estate rewards patience. Luka Malkovich, a Serbian investor profiled in Bloomberg, put it simply: “The perfect time to invest here is always five years ago.” In other words, waiting rarely pays. Buying and holding, even through challenging cycles, has historically produced wealth in the U.S. housing market.

The Lull in Demand for Houses Won’t Last Forever

Markets move in cycles, and today’s slowdown in domestic demand won’t last. Rates will eventually fall, affordability will improve, and millions of Americans will reenter the market. When that happens, competition will return—and so will bidding wars. Foreign buyers know this, which is why they’re moving now.

But there’s more to it than just the inevitability of rising demand. Every housing cycle has a “quiet window” where serious buyers face less competition and have more leverage with sellers. Right now is that window. Sellers who need to move are often more open to concessions, price adjustments, or covering closing costs. Buyers willing to act during this lull can lock in properties without the frenzy of twenty offers above asking price. Those who wait will face a much tougher environment once rates retreat and sidelined Americans flood back into the market.

Think of it this way: housing inventory isn’t static. As more people return to the market, the supply-demand balance tips quickly. Homes that sit for weeks today may get snatched up in days tomorrow. That shift translates into higher prices and reduced negotiating power. Foreign investors see the writing on the wall. They know that buying during the lull means controlling the deal, not chasing it later.

For Americans, the question isn’t just whether you can afford to buy today. It’s whether you can afford to wait. By the time conditions feel “perfect,” the best opportunities—homes in desirable neighborhoods, properties with upside potential, or sellers willing to negotiate—will already be gone.

What This Means for American Buyers

If you’ve been waiting on the sidelines, consider what’s happening: international buyers with no personal stake in U.S. homeownership are confident enough to invest their money here, sight unseen, often in cash. They see the long-term strength of the market. Shouldn’t you?

Owning a home isn’t just about timing the market—it’s about building stability, equity, and security for your future. Every month you wait is another month of rent paid to someone else, while foreign investors collect that rent and grow their wealth.

How LendFriend Helps You Compete When Buying a Home

At LendFriend, we understand that buying in today’s market can feel overwhelming. That’s why we position our clients with the same confidence as cash buyers. By comparing dozens of loan programs, negotiating on your behalf, and structuring offers that stand out, we make sure you don’t get left behind while global investors move in.

We also get creative with financing. Tools like a 2-1 buydown can temporarily lower your interest rate for the first two years, easing the payment shock of today’s market. We work with sellers to  negotiate concessions that cover closing costs or even buy down your rate further. These strategies can free up thousands of dollars, making your offer stronger and your monthly budget more comfortable.

Whether you’re a first-time buyer in Austin, upgrading in Dallas, or relocating to Houston, our team helps you navigate the market with clarity and speed. We’ll help you lock in financing, explore down payment assistance, and structure your purchase in a way that keeps you competitive—even against buyers overseas who don’t need financing.

Conclusion: Don’t Let Opportunity Pass You By

Foreign buyers aren’t waiting for rates to drop or headlines to turn rosy. They’re buying now because they know that the real value of real estate reveals itself years down the road. The question is: will you be one of the Americans who waits for “someday,” or will you take advantage of the same opportunity international investors are capitalizing on today?

At LendFriend, we’re here to help you take the next step. Because the perfect time to buy wasn’t yesterday. It’s today.