Pa. Ranks as Second Most Popular Destination for Buyers from India

Foreign purchases of U.S. existing homes dropped 9.5% compared to the previous year, according to the National Association of Realtors®’ 2023 International Transactions in U.S. Residential Real Estate. Foreign buyers purchased 84,600 properties, down 14% from the prior year and the fewest number of homes bought since 2009 when NAR began tracking this data.

“Sharply lower housing inventory in the U.S. and higher borrowing costs across the world have dented international buyers for two straight years,” said NAR Chief Economist Lawrence Yun. “However, recovering international travel following the end of the pandemic will bring more foreign transactions in coming months and years.”

“The number of international buyers in Pennsylvania has remained fairly consistent over the past 14 years. With a large number of world-class colleges and universities in Pennsylvania, housing for national and international students is always in demand. The Pennsylvania housing is also affordable compared to many other states so our entry-level price points make us attractive to immigrants,” said PAR President Al Perry.

The report shows the top foreign buyers in the U.S. are from:

• China (13% of foreign buyers, $13.6 billion)
• Mexico (11% of buyers, $4.2 billion)
• Canada (10% of buyers, $6.6 billion)
• India (7% of buyers, $3.4 billion)
• Colombia (3% of buyers, $0.9 billion).

“Home purchases from Chinese buyers increased after China relaxed the world’s strictest pandemic lockdown policy, while buyers from India were helped by the country’s strong GDP growth,” Yun added.

Pennsylvania is a significant destination for foreign buyers from India and China. The commonwealth ranks as the No. 2 destination for buyers from India at 14% and No. 10 for buyers from China at 3%.

PAR President Al Perry said, “The number of international buyers in Pennsylvania has remained fairly consistent over the past 14 years. With a large number of world-class colleges and universities in Pennsylvania, housing for national and international students is always in demand. The Pennsylvania housing is also affordable compared to many other states so our entry-level price points make us attractive to immigrants.”

Pennsylvania has remained steady since 2009 with its share of foreign buyer purchases ranging from 1-3%, compared to the top three destinations of California, Florida and Texas, which see double digits in the share of foreign buyer purchases.

NAR’s study shows 50% of foreign buyers purchase the property for use as a vacation home, rental property, or both, a six-percentage point increase from last year. Asian Indian buyers were the most likely to purchase a home for primary residence use, with 65% purchasing for this purpose. Chinese (8%) buyers were most likely to purchase a home for student use.