International Real Estate Sales in Fla. = $15.3B
ORLANDO, Fla. — Florida remained the top destination of foreign buyers purchasing U.S. residential real estate in 2022, with 24% of all foreign buyers who bought residential property in the United States, according to the 2022 International Transactions in U.S. Residential Real Estate report from the National Association of Realtors® (NAR).
Florida Realtors®’ latest report, the 2022 Profile of International Residential Transactions in Florida, finds that international sales accounted for $15.3 billion, up 20% from $12.3 billion in 2021.
Florida’s foreign buyer residential purchases (non-commercial) between August 2021 and July 2022 rose 5% compared to the prior 12-month period, according to the report. The combination of higher sales and rising prices also resulted in the higher dollar volume as well.
A slight rebound in sales activity in 2022 marked progress as the world continued to recover from the pandemic. Exacerbated by the war in Ukraine, supply chain issues continued to drag on the global economy despite a stronger domestic recovery.
Florida remains a bargain compared to many other options for international buyers looking to purchase in the United States, but competition for property remains strong and offers few discounts. However, higher sale prices, inflation and lack of inventory continue to constrain the purchase power of buyers of any origin: 49% of the survey respondents cited cost and 38% cited property availability as reasons for not finalizing a deal in 2022.
Visitors to Florida from abroad – often a precursor to their long-term purchase decision – have been rebounding since travel restrictions evaporated in November 2021. In 2022, 92% of foreign buyers visited Florida before purchasing, up from 89% the year before and back to the historical trend.
South America and Canada continued to lead the pack of international visitors in 2022. These same groups also translate into buyers, with 45% of Florida’s foreign buyers coming from Latin America/Caribbean areas and 21% coming from Canada.
Despite a slight decline in the number of Canadians buying residential property in Florida, the value of what they buy is increasing, and it pushed them to the top spot with $1.7 billion in sales in 2022. By comparison, Brazilian buyers, the second largest group, purchased $486 million.
South Florida remains the preferred location for international business. While foreign buyers purchased property across the state, most foreign buyers were concentrated in six metropolitan areas:
- Miami-Fort Lauderdale-West Palm Beach (53%)
- Orlando-Kissimmee-Sanford (10%)
- Tampa-St. Petersburg-Clearwater (8%)
- North Point-Sarasota-Bradenton (6%)
- Cape Coral-Fort Myers (6%)
- Naples-Immokalee-Marco Island (3%)
- Median sale price of a Florida home purchased by a foreign buyer: $462,000 in 2022 compared to $347,300 in 2021.
- The median price among foreign buyers was 22% more than the median price of all properties sold in Florida between August 2021 and July 2022.
- 10% of foreign buyer sales sold for $1 million or more, compared to 6% in that price range in 2021.
- Latin American and Caribbean buyers accounted for 45% of Florida’s foreign buyers, followed by Canadians (21%), Europeans (18%), then Asia and Oceania (7%) – 8% of respondents did not identify the regional origin of the foreign buyer.
- Most foreign buyers in Florida – 69% – made an all-cash purchase, compared to 44% of U.S. foreign buyers.
- 72% purchased residential property for a vacation home or investment rental.
- Slightly more than half of foreign buyers in Florida purchased detached or attached single-family homes (52%), lower than the 74% share among all U.S. foreign buyers.
- 43% of Florida’s foreign buyers purchased in a central city or urban area, up from 34% in 2021; nationally, 29% of all U.S. foreign buyers purchased property in a central city or urban area.
- In 2022, 92% of foreign buyers in Florida visited the Sunshine State at least once before making a purchase; it was 89% in 2021.
Florida’s Realtors’ interaction with international clients
- In 2022, 34% of Florida Realtors’ respondents worked with an international client – the same share as in 2021; nationally, the share of Realtors who worked with a foreign client was 17%, up from 15% last year.
- 27% of those who worked with an international client reported a decrease in their international business.
- 45% expect an increase in their international transactions in the next 12 months – down slightly (52%) from last year’s survey.
- 69% of Realtors reported no significant issues working with international clients.
- Of the Realtors surveyed, nearly one-third (31%) were born in a country other than the U.S., and 40% were fluent in a language other than English.
The 2022 Profile of International Residential Transactions in Florida report presents information from Florida Realtors members regarding residential transactions with international clients closed during the 12-month period of August 2021 – July 2022. This annual report is conducted to assess international investment trends in Florida residential real estate, including sales volume, characteristics of foreign buyers, and challenges and opportunities inherent in cross-border transactions.