Los Angeles loses its shine for global homebuyers as rival markets gain ground
The City of Angels is losing its once-unshakable appeal among international homebuyers, as a fresh report reveals a steep and sustained decline in foreign interest over the past six years.
According to a Realtor.com analysis of global property search traffic, Los Angeles captured just 4.6% of international home-shopping activity in the first quarter of 2026 — a dramatic drop from 7.9% in the same period of 2020. The slide has been broad-based, spanning buyers from North America, Europe, Asia and Oceania.
Among North American shoppers, LA’s share fell from 5.8% in early 2025 to 3.3% in early 2026. European interest slid from 8.9% to 5.7%, while Asian buyer traffic slipped from 8.9% to 6.1%. The most dramatic retreat came from Oceania, where LA’s share almost halved — from 18.2% to 9.3% — in just one year.
The findings underscore a fundamental shift: foreign buyers who once gravitated toward Southern California are now setting their sights on competing U.S. cities. Los Angeles still ranks as the third-most popular destination globally, but it now trails Miami, which commands 10.3% of international demand, and New York, at 4.7%.
Rising affordability concerns are driving the exodus. Researchers noted that lower-cost markets have become increasingly attractive to overseas investors, especially as LA’s median home price remains well above the national average. Dallas has surged in popularity among buyers from North America, South America and Oceania. Miami continues to dominate European demand, while New York is gaining traction with Asian shoppers.
The trend also reflects broader headwinds. California’s high taxes, strict land-use regulations and a persistent housing shortage have made it harder for LA to compete with friendlier growth policies elsewhere. Meanwhile, Mayor Karen Bass’s administration has faced criticism for slow-moving efforts to address homelessness and permit reform, with rival cities actively courting both investment and residents.
“The numbers tell a stark story,” said one housing analyst. “Los Angeles is no longer an automatic destination for global capital. It has to fight harder, and so far it isn’t winning that fight.”
The erosion of international interest represents a dramatic reversal for one of the world’s most iconic housing markets. Six years of dwindling foreign demand suggest that the city’s brand — long synonymous with sun, glamour and opportunity — is losing its luster on the global stage.