International homebuyers invest over $600M in Central Texas housing market
India lands as top country of origin for second year in a row
AUSTIN, Texas — International homebuyers invested $609 million in the Central Texas housing market from April 2022 to March 2023, according to the 2023 Central Texas International Homebuyers Report released today by the Austin Board of REALTORS®.
The $609 million in sales dollar volume from foreign buyers comprised 3% of all residential sales dollar volume in the Austin Round Rock MSA, which was effectively unchanged from the same time the year prior demonstrating the international demand for Central Texas real estate has remained steady.
“The Central Texas region continues to be a magnet for international homebuyers and investors,” Ashley Jackson, 2023 ABoR president, said. “One in six new Austin-area residents come from abroad, which is a testament to our business-friendly environment, thriving entrepreneurial spirit and the incredible quality of life Austin provides. This report provides REALTORS® and the business community with unmatched data to help inform any individual or organization considering Austin as their next stop and reinforces the importance of looking at Central Texas real estate with a global perspective.”
For the second year in a row, India was the top country of origin for international homebuyers in Central Texas (21%), with Mexico (17%), China (6%), Brazil (6%) and Canada (5%) securing the top five countries of origin for foreign buyers.
The median home price among foreign buyers was $573,214, which grew over $50,000 more than the 2022 median home price among foreign buyers ($513,900). Consistent with previous years, the median home price among foreign buyers was considerably higher than the Austin-Round Rock MSA median price during the survey period, which was $478,341.
The report identified that over half (52%) of international clients, buyers and sellers, were U.S. permanent residents while 26% of international clients had Type A visas and 22% had Type B visas.
“Over the survey period, despite an elevated rate environment, inflation and economic uncertainty, international demand in Central Texas remained stable,” Clare Losey, Ph.D. ABoR housing economist, said. “As one of the fastest-growing regions in the country, Central Texas remains a top contender for international homebuying, selling and investing. The influx of foreign dollars invested into the region’s economy is significant as it enhances the region’s already strong economic performance and vitality.”
Compared to the 2022 Central Texas International Homebuyers Report, in which foreign buyers purchased a Central Texas home for a new primary residence (59%), in 2023, 63% of foreign buyers purchased a Central Texas home for a new primary residence. Additionally, the report also found that 61% of foreign buyers used mortgage financing from entities within the U.S. to purchase property compared to 63% in 2022, 54% in 2021 and 57% in 2020.
The report also tracked that over two-fifths of international buyers purchased a piece of residential property in Travis County outside the city of Austin–and Williamson County. Meanwhile, nearly one-third of international buyers purchased in Travis County–within the City of Austin and Hays County.
Losey added that an analysis of the Central Texas REALTORS® surveyed for this report showed that three in five reported that sales activity remained steady over the past year and the past five years.
“It’s evident that Central Texas remains a prime destination for international homebuyers and investors, and we can anticipate continued growth in international home buying activity in the years to come.”
To download the full 2023 Central Texas International Homebuyers Report or to stay connected with international real estate news through the ABoR Global Business Alliance, visit www.ABoR.com/Global.
The Austin Board of REALTORS® a nonprofit organization that has been serving the needs of Central Texas REALTORS® and homebuyers, sellers, and renters for nearly a century. Through professional development, grassroots advocacy, and community, we give our 20,000+ members the power they need to ensure people have homes. Our multiple listing service (MLS) connects both agents and consumers with the most accurate and robust real estate marketplace in the region. For more information, contact the ABoR public relations team at abor@ecprtexas.com . For the latest local housing market listings, visit AustinHomeSearch.com.