Decline of Los Angeles as a Magnet for Foreign Homebuyers

New data reveals that Los Angeles is losing appeal among overseas homebuyers, with foreign buyers increasingly eyeing other U.S. cities. The city’s share of international real estate interest is on the decline.

In the first quarter of 2026, Los Angeles accounted for just 4.6% of international residential traffic, a notable drop from 7.9% in early 2020.

This decline isn’t limited to one segment; almost every major global region shows a decrease. For instance, interest from North American buyers in Los Angeles dropped from 5.8% in early 2025 to 3.3% this year. Similar trends are seen with European interest, which fell from 8.9% to 5.7%, and Asian interest, which went from 8.9% to 6.1%.

The steepest drop occurred in Oceania, where the interest halved—falling from 18.2% to 9.3% over the past year.

The findings indicate that foreign buyers, once drawn to Southern California, are now considering other U.S. options.

While Los Angeles still ranks as the third most popular destination for international homebuyers—behind Miami at 10.3% and New York at 4.7%—it’s clear that the city is losing ground.

This shift marks a significant change for one of the world’s most recognized housing markets. After six years of dwindling international interest, it seems Los Angeles may be becoming harder to sell to foreign buyers.

Other cities are rising in popularity as well. Dallas is gaining traction among buyers from North America, South America, and Oceania. Meanwhile, Miami is still a favorite for European shoppers, and New York is climbing in popularity with Asian buyers.

Analysts suggest that the affordability gap between Los Angeles and competing markets is widening, making lower-cost cities more attractive to international investors.

Compounding the issue, the policies of Los Angeles Mayor Karen Bass could be adding to the city’s challenges. As rival cities work to attract investment and homebuyers, Los Angeles appears to be struggling to retain its competitive edge.

This evolving landscape marks a dramatic turn for a city once synonymous with luxury housing, highlighting a growing challenge for its real estate market on the international stage.