US Real Estate Loses Luster as Foreign Buyers Flee

The sales of American real estate to foreign buyers have dropped dramatically in recent months. According to the National Association of Realtors, foreign purchases fell by 19.1% in dollar volume and 14% in transaction count between April 2025 and March 2026.

This decline is surprising given that a weaker US dollar should make American real estate more attractive to overseas buyers. However, experts point to a 'wait and see' approach driven by a turbulent year of trade policy shifts and state-by-state changes to property ownership laws as the main reason for the hesitation.

The top destination for foreign buyers remains Florida, but New Jersey and Georgia have entered the top five for the first time. Meanwhile, American ultrawealthy investors are increasingly looking abroad, with one in ten respondents to a NAR survey reporting US clients searching for property overseas.

Citi's 'Wealth Beyond Borders' report projects $3.06 trillion shifting into hubs like Hong Kong, Singapore, Switzerland and the UAE between 2025 and 2029, while UBS Global Family Office survey found nearly 30% of family offices cutting or considering cutting dollar-denominated holdings amid fears of an AI bubble, tariffs and a weakening dollar.