Why global investors are still buying U.S. real estate in 2026

"While many of the latest conversations around the U.S. real estate market have focused on affordability and interest rates, one segment continues to move forward: foreign investors. While domestic buyers remain more cautious, investors from abroad are driving much of the transaction volume in many U.S. markets. One reason is that foreign buyers view risk, financing and timing differently. Perhaps the most important difference between the two is the role of interest rates."

"International investors are often less affected by interest rate fluctuations than domestic investors. One reason is that some of those investors purchase properties with cash, and those who do take out loans typically view U.S. mortgage rates as more attractive than those in their home country. For example, several key Latin American markets still see significantly higher mortgage rates, with Mexico and Brazil in the 10-11% range, and Colombia in the 1213% range. Mortgages in Argentina, too, are elevated relative to the U.S."

Foreign investors account for much of the transaction volume while domestic buyers remain more cautious. Foreign buyers view risk, financing and timing differently, with interest rates playing a central role. Some international investors purchase properties with cash; others view U.S. mortgage rates as more attractive than in their home countries. Several key Latin American markets have mortgage rates in the 10-13% range, making U.S. rates more appealing. Even where rates are lower abroad, higher down payments, lower rental yields or fewer deductible expenses can reduce investment attractiveness. Loan products like DSCR and non-QM enable scalability, qualifying borrowers on property cash flow.

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