According to Redfin Real Estate, the US dollar has experienced its worst start to a year since 1973, dropping more than 10 per cent in the past six months compared to currencies from major trading partners.
This decline gives foreign buyers more purchasing power in the American housing market.
Russian buyers are seeing the greatest advantage, with the equivalent price of US homes falling 9.6 per cent in Russian rubles despite US home prices rising 1 per cent year over year in June. Buyers from Switzerland and Sweden are also experiencing significant savings.
The weakening dollar comes amid concerns about Donald Trump’s trade proposals, debt-increasing legislation, stubborn inflation, and high interest rates, which have cast doubt on the US as the centre of the global financial system.
Foreign investment in US real estate has already shown signs of growth, with international buyers purchasing $56 billion worth of US homes from April 2024 to March 2025, a 44 per cent increase from the prior year.
However, not all foreign buyers are benefiting from this trend.
Those from countries with currencies that have weakened against the dollar, including Mexico, Canada, China, and India, which represent the top four countries where America’s foreign homebuyers originate, are facing higher effective prices.
The advantage for foreign buyers is particularly strong in markets where home prices are already falling. Austin, Texas, has seen the largest year-over-year price drop at 7.7 per cent, creating even greater savings for international buyers with strengthening currencies.
Florida continues to be the preferred destination for international homebuyers, a trend that has persisted for years.
Recent price drops following the state’s pandemic-era boom could create additional savings for foreign buyers in the coming months.
Redfin predicts that as inventory continues to accumulate from sellers unable to find buyers, house prices will begin to decline by the end of the year, potentially creating an even more favourable market for foreign buyers.
