A new report released by the Texas arm of the National Association of Realtors has revealed that Texas is the place to be for international single-family real estate investment as activty from these international investors topped $4.3 billion (or nearly 10,000 homes) between the months of April 2022 and March 2023.
These numbers represent 2.8% of the total number of homes sold in the state during that period and 3.6% of the total dollar volume of residential sales.
According to the report, the median home price investors paid for homes was $320,800, lower than the state median price of $342,000.
Put another way the average purchase price for international investors totaled $446,100 suggesting that while the majority of investors purchased homes priced at or below the state-median price, a subset of investors bought significantly more expensive homes, which blew-out the price curve which is why the average dollar volume per purchase was higher than the median price.
Half, or 49%, of these investors chose to purchase homes in cash indicating that many of those buyers had the desire and capital to do so without obtaining a traditional mortgage. The report also revealed that a significant portion (61%) of international buyers already resided in the U.S. on visas.
"Texas has long been one of the most popular states for international buyers," said Marcus Phipps, 2023 Chairman of the Texas Realtors. "Our strong economy, diverse population and high quality of life make the Lone Star State an attractive destination."
According to a National Association of Realtors nationwide report of international homebuying activity, 11.7% of all international buyers of residential property in the U.S. purchased a home in Texas, behind only Florida (23%) and California (12.2%).
Mexico led significantly in terms of country of origin for foreign homebuyers in Texas, accounting for 41% of purchases. The other top countries were China (8%), India (7%), Nigeria (5%) and Venezuela (5%), showing a diverse international interest in the Texas real estate market.
Click here to view the report in its entirety.