Foreign investors have long been a driving force in South Florida’s condominium market, but that trend is reversing.
High interest rates, soaring property prices, and increasingly restrictive immigration policies are prompting many international buyers to pull back.
According to the Miami Association of Realtors, foreign buyers accounted for just 10% of home sales in the region from August 2023 to July 2024—the lowest percentage since 2015 and a sharp decline from 50% in 2018.
The data, based on a survey of nearly 2,400 real estate agents across Miami-Dade, Broward, Palm Beach, and Martin counties, defines foreign buyers as non-U.S. citizens whose primary residence is abroad, as well as visa holders living in the U.S. for six months or more and green card holders for less than two years.
Foreign Buyers Step Back
Foreign buyers have long dominated in South Florida, but the their share of the market as measured in dollars has fallen to the lowest point since 2015.
Historically, Latin American buyers have made up the bulk of foreign investment in South Florida—nearly 60% last year—drawn not only by the favorable climate but also by the perception of U.S. real estate as a safe investment, protected from instability in their home countries. After the 2007 housing crash, international investors rushed in to scoop up discounted properties amid low interest rates.
“During the Great Recession, foreign buyers bailed out the South Florida condo market,” said Peter Zalewski, a Miami-based condo analyst.
But that dynamic shifted after the COVID-19 pandemic. Domestic demand surged as Americans sought to relocate from lockdown-stricken regions, driving up prices and reducing affordability. At the same time, the rising dollar and interest rates diminished the appeal for foreign investors.
The 2021 collapse of the Champlain Towers South condo building in Surfside triggered sweeping reforms. New state laws now require condo owners to fund major structural repairs, adding steep costs that have pushed many to sell. According to Redfin data, listings have reached record highs.
Unlike past downturns, foreign buyers may not be coming to the rescue this time. Global uncertainty, compounded by restrictive U.S. immigration and trade policies introduced during the Trump administration, has dampened enthusiasm.
“Not only are they still grappling with currency challenges, but now immigration policies and perceived disrespect are adding to the hesitation,” Zalewski said. “It’s a tough situation for condo sellers.”
Source: The New York Times
