international homebuying report
Texas is the 3rd hottest state for international homebuyers, new report shows
The trend of international buyers purchasing homes in Texas shows no signs of slowing down, as revealed in the latest Texas International Homebuyers Report.
Released September 6 by Texas Realtors, the report shows that the Lone Star State remains the No. 3 hottest U.S. destination for international homebuyers. Texas ranks behind Florida and California for the fourth consecutive year.
From April 2022 to March 2023, 9,900 Texas homes were purchased by "foreign buyers," which the report defines as people who don't live in the U.S., don't live here full time, live here temporarily on non-immigrant visas, or have been in the country for less than two years.
61 percent of buyers fell in the latter two categories: some examples from its definition include "diplomats, foreign students, foreign workers," along with recent immigrants. These homes make up 11.7 percent of the total number of Texas Realtors sales transactions. For comparison, Florida (No. 1) accounted for 23 percent of purchases, with California (No. 2) at 12.2 percent.
In other words, although there are proportionally more foreign buyers in Texas than almost any other state, they only make up about a tenth of total home sales, and more than half of the buyers already lived in the U.S. or were legally committed to living here full-time.
Only 18 percent of homes bought by foreign buyers were intended as rental properties, and 10 percent were vacation homes. More than half (51 percent) bought a primary residence in Texas.
"Texas has long been one of the most popular states for international buyers," said 2023 Chairman of the Texas Realtors Marcus Phipps in a release. "Our strong economy, diverse population and high quality of life make the Lone Star State an attractive destination."
International buyers spent $4.3 billion on these Texas homes during the time period, the report says. Nearly half (49 percent) of buyers avoided the need for a mortgage by paying for their homes in all-cash.
In all, 84,600 international buyers bought property in the U.S. between April 2022 to March 2023, down from 98,600 buyers in last year's report.
The report further states that the median home price for international buyers is slightly lower than the overall Texas median: $320,800 versus $342,000. However, the average purchase price for international buyers was significantly higher, at $446,100.
Mexico made up 41 percent of the top buyers, followed by China (8 percent) and India (7 percent). Nigeria and Venezuela accounted for five percent each within the top foreign buyers.