USA

Florida Ranked Top Destination for Foreign Real Estate Buyers

Florida accounts for 23% of foreign purchases in the United States, making it the No.1 destination for overseas buyers. Uncover the statistics and find out what's driving interest in the Sunshine State.

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Dubbed the Sunshine State, Florida has always been a popular option for foreign buyers looking to invest in U.S. residential real estate. With an appealing climate, thriving property market, strong economy and favourable taxation laws, it’s unsurprising that Florida has gained the top spot as the most sought-after destination for international homebuyers.

According to the 2023 Profile of International Transactions in U.S. Residential Real Estate by the National Association of REALTORS® (NAR), Florida accounts for 23% of foreign purchases in the United States, far ahead of states like California and Texas which clock in at 12% each.

Where Overseas Buyers Are Coming From

The NAR report highlights that China leads the charge in foreign investments in the U.S. property market, comprising 13% of all foreign buyers.

They are followed closely by Mexico (11%), Canada (10%), India (7%), and Colombia (3%). Notably, Chinese investors account for an impressive $13.6 billion of foreign buyer residential purchases.

This is in addition to domestic migration which is also among the highest in the USA. In 2022 around 319,000 people moved from other states into Florida.

Financial Highlights

Dollar Volume: $53.3 billion was spent by foreign buyers between April 2022 and March 2023.

Number of Purchases: 84,600 existing homes were purchased by foreign buyers during the same period.

Payment Preferences: A significant 42% of foreign buyers opted for all-cash payments, compared to 26% among all existing home buyers.

Property Types: Around 76% of foreign buyers chose to invest in detached single-family homes or townhouses.

Reasons for Purchase: 50% of foreign buyers invested in properties for use as vacation homes, rentals, or a mixture of both.

What’s Driving Interest?

Florida’s allure goes well beyond simply its sunny climate and beautiful beaches. There are a wealth of reasons why both domestic and overseas buyers choose to make the Sunshine State their home.

Some factors include:

Lifestyle

Florida offers a high quality of life, with an abundance of recreational activities, including theme parks, boating, and golfing. While it may be renowned for its retirement scene, there is also a wealth of things to do for all generations.

Tax Benefits

Florida’s favourable tax structure, which includes no state income tax, is a significant draw for foreign buyers. In addition, Florida enjoys low property taxes, with the average annual property tax rate being just 0.86 per cent.

Diversity

Florida’s multicultural atmosphere makes it an inviting destination for foreign nationals who find communities where they feel at home. Areas such as Miami Beach are particularly known for having a community of expats from around the globe.

Investment Potential

Florida’s real estate market has shown strong resilience and growth, making it a wise investment option for foreign nationals both as a rental investment or with the promise of rising capital appreciation.

As U.S. residential real estate increasingly becomes a global commodity, the future indeed looks bright for Florida’s real estate market, solidifying its reputation as a paradise for both domestic and foreign buyers.


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