What International Buyers are Looking for in the Florida Market
ORLANDO, Fla. – October 23, 2023 – Florida Realtors® has released its latest report on the state's international buyer and seller transactions, the 2023 Profile of International Residential Real Estate Activity. International buyer purchases of Florida residential properties between August 2022 and July 2023 declined 18% compared to the prior 12-month period, in terms of sales counts. Challenges in the global economy continue to weigh on buyers as sales levels have not yet returned to pre-pandemic norms. International buyers in Florida also face an unusually high level of competition from domestic out-of-state buyers in a high price, high interest rate environment.
While sales prices are higher, the decline in transactions have pulled international buyer dollar volume back in line with 2021 levels at $12.6 billion. Dollar volume in 2023 was 18% less than last year’s $15.3 billion. Among those from the countries with the most dollar volume in 2023, Canadians purchased the most in dollar terms by a significant margin. In total, Canadian dollar volume in 2023 was $2.1 billion. Dollar volume decreased for Colombian, Peruvian and Mexican buyers.
Higher prices and rising rates prohibited buyers of all kinds from closing deals over the past year. Roughly 68% of respondents reported at least one of their international clients ultimately chose not to buy a Florida property, up from 62% in 2022. Cost of property was the top reason cited (47%) as the reason buyers did not close. Florida remains a bargain compared to many other options for international buyers looking to purchase in the United States, though competition for property remains strong offering little discount.
Florida has strong appeal and a positive reputation worldwide, yet most international buyers still want to visit before taking the plunge. In 2023, 93% of respondents visited Florida at least once before making a purchase. This compares to 92% the previous year and 89% in 2021 when international buyers were hindered by travel bans in place during the pandemic.
Here are highlights from the 2023 report:
Residential purchases (non-commercial) between August 2022 and July 2023 declined 18% compared to the prior 12-month period. While sales prices are higher, the decline in transactions have pulled international buyer dollar volume back in line with 2021 levels at $12.6 billion.
Number of existing homes purchased in Florida by international buyers, which is 5% of existing-home sales (18% lower from the prior 12-month period level of 23,700)
Share of international buyers whose primary residence is abroad (Type A)
Florida’s top 5 buyer countries by sales
- Canada (18% of international buyers)
- Columbia (10%)
- Brazil (7%)
- Argentina (7%)
- United Kingdom (4%)
Florida’s top 5 international buyers by dollar volume
- Canada ($2.1 B)
- Brazil ($1.5 B)
- Colombia ($982 M)
- Peru ($539 M)
- Mexico ($524 M)
Top international buyer destinations
Miami-Ft. Lauderdale-West Palm Beach (47% of international buyers)
Tampa-St. Petersburg-Clearwater (8%)
Cape Coral-Ft. Myers (6%)
North Port-Sarasota-Bradenton (4%)
Naples-Immokalee-Marco Island (4%)
International buyer median purchase price ($383,000 for all Florida existing-homes sold)
International buyers who paid all-cash (44% among all U.S. international buyers)
International buyers who intended to use the property for vacation, residential rental, or both uses
International buyers who purchased single-family units
Percent of international buyers who visited Florida at least once before making a purchase
Percent of international buyers who were referrals of personal and business contacts and former clients, or who were former clients
Respondents who reported clients (either non-U.S. citizen or U.S. citizen) seeking to purchase property abroad
Percent of respondents who speak a language other than English
Percent of respondents who “have not had problems” working with international buyers
Click the blue button below to download the most recent report, the 2023 Profile of International Residential Real Estate Activity in Florida. If you are visually impaired and need assistance reading the full report, please contact the Research Department at 407.438.1400.