HousingWireHousingWire
International demand for U.S. real estate ticked up in the first quarter of 2025, with foreign home shoppers increasingly turning their attention to Southern markets — particularly in Florida and Texas — according to a new report from Realtor.com.
Miami ranked as the most-viewed U.S. city among international buyers, accounting for 8.7% of all foreign search traffic. Other high-ranking cities included New York (4.9%), Los Angeles (4.6%), Orlando (2.9%) and Dallas (2.8%).
Overall, international home shoppers made up 1.9% of Realtor.com traffic in the first quarter. That’s up from 1.7% during the same period in 2024 and 1.3% in early 2020, just before the start of the COVID-19 pandemic.
Shifts in buyer origins
Canada remains the top source of international interest in U.S. real estate. But the Canadian share of foreign traffic at Realtor.com dropped notably, from 40.7% in Q1 2024 to 34.7% in Q1 2025 — a decline that coincided with the imposition of U.S. tariffs on Canadian goods and heightened diplomatic tensions.
At the local level, Canadian traffic decreased in every one of the top 20 U.S. metro areas. The largest decline occurred in Naples, Florida, where Canadian views dropped by 13.5 percentage points — from 73.1% of all international views in Q1 2024 to 59.6% in Q1 2025.
Other cities saw similar trends: North Port, Florida (-12.9 points); Phoenix (-11.8); Cape Coral, Florida (-10.8); Tampa (-10.1), and Detroit (-10) all experienced double-digit declines in Canadian interest.
Despite the overall dip, the report noted that Canadian home shoppers accounted for roughly one-third of international traffic, still significantly ahead of other countries.
The United Kingdom (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%) rounded out the top five.
Texas gains ground
Texas emerged as a notable growth region in Q1 2025, with Austin and San Antonio breaking into the top 20 most-viewed U.S. housing markets for international buyers. Dallas moved up three spots year over year while Houston secured the No. 6 position overall.
Texas’s appeal is attributed to several factors — including relative affordability, the lack of a state income tax and a business-friendly environment. The report highlighted the state’s economic expansion and infrastructure development as key draws.
Cultural diversity, international travel connectivity and the presence of major universities have also helped to make Texas an attractive destination for foreign buyers, Realtor.com concluded.
Western cities lose favor
In contrast to Texas’s rise, several major Western cities lost ground.
San Francisco, San Diego and Las Vegas each dropped out of the top 20 markets for international interest. Affordability concerns, economic uncertainty and quality-of-life issues contributed to their declines.
The report also cited tech industry volatility, urban infrastructure issues and debates over zoning and homelessness as contributing factors.
San Francisco had already fallen out of the top 20 by Q1 2024 and continued to be absent in 2025.
Mexican buyers favor border cities
Mexican home shoppers — who made up 5.4% of international traffic — continue to favor markets near the U.S.-Mexico border. San Diego, San Antonio, Dallas, El Paso and Houston were among the most-viewed locations for these Realtor.com users.
Mexican homebuyers played a significant role in San Antonio, driving 18.8% of its international demand. Other markets where Mexican buyers were prominent included Riverside, California (10.5%), and Chicago (8.2%).
Despite U.S. tariffs on Mexican imports, the drop in online traffic from Mexico was modest — declining from 5.8% to 5.4% year over year. Some cities, however, did see sharper local declines. Chicago’s share of traffic from Mexico dropped from 10.9% to 8.2%, while Philadelphia (-1.2 points), San Antonio (-1.2) and Phoenix (-1.1) also saw substantial decreases.
According to the report, the strong presence of Mexican buyers in border cities reflects “proximity to home, strong cultural and language connections, established family and business networks, and easier access to education, health care, and cross-border travel.”
Together, the 20 most-viewed cities by international buyers accounted for nearly half — 46.9% — of all international traffic.
