Between April 2021 and March 2022, international homebuyers purchased 98,600 homes in the United States, 8% of which were located in Texas.
Nationwide, Texas had the third most home sales to foreign buyers, behind Florida and California, according to the 2022 Texas Realtors International Homebuyers Report.
Despite the state attracting substantial numbers of international buyers, the pace has been slowing in recent years. The 12 months preceding March 2020 saw the state sell roughly 14,000 homes to buyers from out of the country. In the subsequent year, that number fell to around 10,000. Now, it is under 8,000.
While the number of units sold is diminishing, sellers have at least enjoyed record-high sale prices. Even though that trend is beginning to buckle, U.S. homes are selling at roughly 8.5% higher values than last year.
The number of units sold is not the only thing changing; the buyers themselves are shifting.
Historically, prospective buyers from Latin America and the Caribbean accounted for 31% of all foreign-bought homes. This year, there has been a substantial uptick from overseas. Europeans now make up 27% of homes sold to international buyers in the state, a jump from only 14% last year.
Russell Berry, chairman of Texas Realtors, stated, “The region of origin for homebuyers choosing Texas had a noticeable swing this reporting period. Historically, the largest number of homebuyers purchasing in Texas from outside of the United States are from the Latin America and Caribbean region. While that is still true, European homebuyers nearly closed the gap this past year.”
Another interesting finding from the International Homebuyers Report is that of all U.S. states Mexican buyers select to purchase property in, Texas is the overwhelming leader.
Roughly 22% of all U.S. home sales to Mexican buyers occur in Texas. Florida is the second most popular destination for buyers from Mexico but trails the Lone Star State considerably, with only a 12% share of national purchases.
According to Berry, despite the slowdown in sales, Texas is still “one of the most desirable destinations for people looking to purchase a home in the United States.”
