It’s a sunny morning in Dallas, and as I sip my coffee, I overhear a conversation between two neighbors—one from Canada, the other from Mexico. They’re animatedly discussing their plans to move to Texas, chatting about schools, business opportunities, and most importantly, the possibility of owning property in this rapidly growing state.
Such conversations have become increasingly common in Texas, as international buyers are flocking to the Lone Star State. Texas, once seen as the heart of American cowboys, is now fast becoming a prime destination for people around the world looking to chase the American Dream.
I recently spoke with Xu Jiayi, an economist at Realtor.com®, who mentioned that while Texas has long been a favorite of Americans, it’s now on the radar of foreign buyers as well. Thanks to its affordable cost of living, no state income tax, and thriving business environment, Texas is drawing interest from international buyers who previously focused on states like California, now opting for more affordable alternatives. The biggest pull? Texas’ real estate market offers a much-needed break from the high prices of coastal cities.
In the first quarter of 2025, the percentage of foreign buyers browsing homes in Texas on Realtor.com® reached 2.1%, up from 1.9% in 2024 and 1.2% in pre-pandemic 2019. However, the numbers tell only part of the story—behind these figures is the shift in where international buyers are choosing to invest.
Take a look at some of Texas' largest metros. The Dallas-Fort Worth-Arlington area now ranks as the 5th most popular destination for foreign buyers, up two spots from last year. Houston also moved up to 6th, while Austin surged 9 spots, landing at 16th. Even San Antonio, long considered a secondary market, now ranks 19th, with international buyers vying for homes in this once-overlooked city.
This shift marks a stark contrast to just a few years ago when places like San Francisco, San Diego, and Las Vegas were the primary focus of international buyers. Now, those markets are struggling with affordability issues and concerns about long-term returns, driving international buyers toward more favorable markets like Texas.
Imagine being an international buyer, browsing homes on Realtor.com® from halfway across the world. Your eyes land on a newly-built four-bedroom home in Dallas listed at $450,000. It’s modern, energy-efficient, and offers space that you couldn’t dream of finding in a big city on the coasts. It’s no surprise that international buyers are increasingly turning their attention to Texas—affordable, modern homes are here for the taking.
But why Texas? The answer is simple: jobs. Texas has long been known for its business-friendly policies, and now those policies are paying off in a big way.
“This has spurred economic growth, created job opportunities, developed infrastructure, and increased housing demand, making these markets even more appealing to international buyers looking for long-term investment or relocation opportunities,” Xu added.
Many companies, including Realtor.com® itself, have moved to Texas, taking advantage of the state’s favorable business climate. As Atif Ahmad, a realtor from Brits of Compass, who specializes in helping UK citizens buy property in the U.S., notes, Houston is a hub for oil and gas companies, as well as large multinational corporations. These industries provide abundant job opportunities for expatriates. “Houston is a center for oil and gas, and it’s home to numerous large multinational corporations, offering plenty of employment opportunities for foreigners,” Ahmad said.
But Texas offers more than just jobs. The weather is pleasant (especially compared to the rainy, gloomy UK), the healthcare and educational systems are top-notch, and Texas’ central location makes it easy to travel to major cities like Los Angeles, Miami, and New York, not to mention destinations like Mexico and the Caribbean.
Another reason why foreign buyers are flocking to Texas is the abundance of new construction. Harrison Polsky, a developer at CatenaHomes in Dallas, noted that many buyers from Latin America, Canada, and parts of Europe are drawn to the new homes being built, seeking modern amenities and energy-efficient features. Some are purchasing second homes, while others are buying for family members attending school in the state.
The common thread among these foreign buyers is clear: Texas offers what the rest of the world is yearning for—modern, practical, and affordable housing.
So, who is moving to Texas? While Canadian interest in relocating to the U.S. has decreased slightly, they still make up the largest share of foreign buyers, accounting for 34.7% of international traffic on Realtor.com®—down from 40.7% last year. This decline coincides with the trade policies implemented under President Trump’s administration.
Despite the dip in interest from Canada, there has been an uptick in interest from the UK (5.7%), Mexico (5.4%), Germany (3.8%), and Australia (3.2%).
Mexican buyers, in particular, are flocking to Texas, and it’s easy to see why. The state’s proximity to Mexico, along with the shared culture and language, makes it an obvious choice for Mexican nationals. Realtor.com® data shows that international buyers account for a significant portion of demand in San Antonio, with Mexican buyers contributing to 18.8% of the city’s international homebuyer demand.
Interestingly, while the Trump-era tariffs affected trade with Mexico, they didn’t seem to have the same impact on property interest. Mexican international trade shares have only decreased slightly (from 5.8% to 5.4%), whereas Canada’s international trade share has dropped by 6%. This shows that despite the tariff challenges, Mexico’s ties to Texas remain strong.
Asian buyers are also showing a growing interest in Texas. Von Truong of Re/Max DFW Associates shared that many buyers from China, Singapore, Canada, and Vietnam are drawn to Texas because of its business-friendly policies, relatively low cost of living, excellent schools, and larger properties compared to what’s available in more crowded urban areas.
All in all, Texas has quickly become more than just a home for Texans—it’s a global destination. From its thriving job market and affordable housing to its pleasant climate and world-class facilities, Texas is emerging as one of the most exciting and attractive real estate markets in the U.S.
For those looking to relocate for work, school, or investment, Texas offers a world of opportunity. Whether you’re a foreign investor or a family searching for a new home, the Lone Star State is becoming a place where dreams are made. So, who knows? The next chapter of the American Dream might just be written in Texas.