Foreign buyers are getting discounts on US homes – here's why

Zephyr_p // Shutterstock

Foreign buyers are getting discounts on US homes – here’s why

House prices reached a record high in June, with monthly costs also hovering in historic territory. This unprecedented lack of affordability has stalled the housing market and prompted a shift in power towards homebuyers, as sellers struggle to offload their listings.

A slower market gives foreign buyers — many of whom pay in cash — more room to take advantage. And thanks to a weakening U.S. dollar, these buyers may be able to spend less than they did a year ago for the same house. In some cases, it’s the equivalent of a 10% discount — even as home prices climb.

Among the countries Redfin analyzed, Russia led the charge in terms of currency-related savings, followed by Switzerland and Sweden.

So what’s behind this shift? Where can foreign buyers reap the most benefits? This article from Redfin Real Estate explains it all.

Why has the U.S. dollar dropped in value?

The U.S. dollar has had its worst start to a year since 1973. It has dropped more than 10% in the past six months when compared with currencies from the country’s major trading partners.

Donald Trump’s trade proposals and debt-increasing legislation, along with stubborn inflation and interest rates, have cast doubt on the U.S. as the center of the global financial system. As a result, analysts have been increasingly worried about a shift away from the U.S. dollar and assets more broadly, which would have profound effects on the housing market.

What does a weaker dollar mean for the housing market?

When the dollar falls, foreign money can go further, which gives foreign buyers more purchasing power. For example, while U.S. home prices rose 1% year over year in June, the equivalent price fell 9.6% in Russian rubles.

So, even though the median U.S. home price reached an all-time high of $447,000 in June, buyers from many countries are effectively paying less than they did a year ago. Cash buyers see the biggest advantage, while those taking on a mortgage could see less benefit – especially when factoring in the higher interest rates foreign buyers can face.

Who’s saving the most?

According to Redfin’s analysis, buyers from seven countries are seeing savings, with Russia leading the way.

Redfin Real Estate

Prior to this shift, foreign buyers purchased $56 billion worth of U.S. homes from April 2024 to March 2025. While still below the peaks of the 2010s, that’s a 44% increase from the prior year and a clear sign of renewed interest in U.S. real estate. International investment could continue to climb if currencies gain more value over the dollar

Not every buyer comes out ahead

Buyers from countries where the local currency has weakened against the dollar are instead seeing prices rise.

Redfin Real Estate

These countries have some of the closest trade ties to the U.S., with the largest trading partner, Mexico, taking the biggest hit. This list also represents the top four countries where America’s foreign homebuyers originate from.

Discounts are highest in cities where prices are dropping

The foreign currency advantage is even stronger in markets where home prices are falling. Among the 100 largest metros, these five saw the biggest year-over-year price drops in June, which correlate to the most savings.

Redfin Real Estate

International homebuyers are flocking to the Sunshine State, continuing a years-long trend of preferring Florida over the rest of the country. Recent price drops following the state’s pandemic-era boom could create more savings for foreign buyers in the coming months, too.

What’s next for the housing market?

In the short term, house prices will likely continue to rise in most areas of the country, albeit more slowly than in recent years. When paired with elevated mortgage rates, buyers will have to deal with a further prolonged period of unaffordability.

However, relief could be in sight. As inventory continues to pile up from sellers who are unable to find a buyer, buyers will have more options to choose from. Redfin predicts that this shift in supply and demand will push house prices down by the end of the year. For foreign buyers, this would be even more favorable than today. If the dollar remains weak, global demand for U.S. real estate could continue to grow.

Methodology

According to a Redfin analysis of exchange rates for a selection of major foreign currencies against the U.S. dollar. The analysis converts the median U.S. home price into the equivalent value in foreign currencies using monthly average exchange rates. All data as of June 2025.

This story was produced by Redfin Real Estate and reviewed and distributed by Stacker.