Canada retained its position as the leading source of international home shopping traffic to the US, but its share continued to slip
International demand for United States real estate edged down in the third quarter of 2025, with Canadian interest continuing its gradual retreat, according to new data from Realtor.com.
Despite the dip, global appetite for American homes remained stronger than before the pandemic, underscoring the enduring appeal of US property among foreign buyers.
“Global economic uncertainty, policy shifts, and the resulting exchange rate fluctuations are creating mixed conditions for international buyers,” Danielle Hale, chief economist at Realtor.com, said.
“These factors have led to some moderation in foreign demand for U.S. homes compared to last year. Still, interest remains above pre-pandemic levels, reflecting ongoing engagement from global home shoppers in key U.S. markets.”
Canadian share slips, but top metros still attract cross-border buyers
Canada retained its position as the leading source of international home shopping traffic to the US but its share slipped to 32.1% in Q3 2025 from 36.6% a year earlier.
The drop coincided with US tariffs on Canadian goods and a volatile exchange rate, factors that have tempered cross-border housing interest.
Still, Canadians dominated online home searches in metros like Cape Coral, Phoenix, and North Port, where they accounted for more than half of international views.
Other notable sources of international demand included the United Kingdom (6.5%), Mexico (5.6%), Germany (4.1%), and Australia (3.4%).
Luxury demand cools as price gap narrows
International shoppers have historically targeted higher-end properties, often for investment or employment relocation.
In Q3, the median home viewed by international buyers in the top 20 US markets was 29.8% pricier than those viewed by domestic shoppers—equivalent to a median price of $588,000 for international shoppers versus $453,000 for domestic buyers in Phoenix, for example.
In Los Angeles, the median home viewed by international buyers reached $3,276,317, compared to $1,197,667 for domestic shoppers—a difference of $2,078,650, or 173.6%.
In New York, the gap was $339,333, or 49.2% ($1,029,333 vs. $690,000). The overall price gap has narrowed from the 34.2% average seen between 2022 and 2024, reflecting a faster decline in median viewed prices for international shoppers (-5.2%) compared to domestic ones (-1.7%), signaling a cooling in luxury demand.
Markets like Los Angeles, New York, and San Francisco posted the largest price gaps, underscoring their status as global luxury destinations.
Austin, meanwhile, stood out for its blend of affordability and high-income job opportunities, attracting both investors and professionals, and with a median price gap of 18.6%, or $101,650 ($648,317 for international vs. $546,667 for domestic).
Policy changes could reshape future demand
Looking ahead, proposed “gold” and “platinum visa” programs may draw more high-net-worth buyers to luxury markets, while restrictions on H-1B visas could dampen demand in innovation hubs like Austin and San Jose.
Thousands of skilled immigrants living in the US on H-1B visas have found their path to homeownership abruptly blocked, following a recent federal policy shift that cut off access to Federal Housing Administration (FHA) loans.
According to John Burns Research & Consulting (JBREC), FHA-backed mortgages for NPRs—including H-1B holders—have “dropped to near-zero following a rule change in May,” Alex Thomas, a JBREC housing analyst, wrote on X.
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