Figure: Florida international residential sales (number of properties) by year. Southwest Florida (Bonita Springs–Estero area) follows a similar trend, with foreign-buyer activity rebounding in 2022 after a 2020–2021 dip, then slowing again by 2023–2024
2020: Pandemic Disruption. International home-buying activity dropped sharply in Southwest Florida as global travel halted in spring 2020 due to COVID-19. Foreign buyer purchases fell well below pre-pandemic levels statewide(linkedin.com) . Top buyer nationalities in the Bonita Springs/Estero region remained Canadians and Europeans, though in far smaller numbers than prior years. Canadian buyer activity especially declined under strict border closures in 2020(bonitaesterorealtors.com) . Median prices for homes bought by international buyers were in the low-to-mid $300,000s range (reflecting 2020 market prices), as both foreign and domestic buyers largely paused during lockdowns.
2021 Historic Low in Foreign Sales. International transactions remained very limited in 2021, reaching their lowest level in about a decade(edgongola.com). Prolonged travel bans (the U.S. only eased entry for foreign nationals in late 2021) kept many would-be buyers away. Canadians, who typically form the largest foreign buyer group, were still largely absent for most of 2021(bonitaesterorealtors.com) . Local realtors noted roughly 910 purchases by Canadian buyers in 2021 across Southwest Florida (Lee and Collier counties)(bonitaesterorealtors.com) – a strong showing relative to other countries, but still suppressed by travel restrictions. Other top countries of origin in 2021 included the U.K. and various European nations, albeit at much lower volumes than normal(bonitaesterorealtors.com) . Median sale prices on foreign-involved transactions began to edge up (into the mid-$300Ks) as the Florida market tightened and overall home prices rose in 2021.
2022 Rebound as Borders Reopen. Foreign buying surged back in 2022 once travel reopened. Florida saw a high-water mark of $15.3 billion in foreign buyer dollar volume during the 12 months ending mid-2022(linkedin.com), reflecting pent-up demand. In Southwest Florida, Canadian buyers “flocked” back as winter visitors, resuming their traditional investment patterns(bonitaesterorealtors.com) . U.K. and other European buyers also returned in greater numbers as transatlantic travel normalized, reclaiming roughly 20% of the international buyer share in the region (similar to 2019 levels)(bonitaesterorealtors.com) . Latin American buyers (notably Brazilian investors) were active as well, contributing to the top-five origin countries locally. The top five countries of origin for foreign buyers in the Bonita Springs/Estero area in 2022 were led by Canada, followed by the U.K., Germany/France (Europe), Brazil, and Colombia – mirroring Florida’s overall leaders(edgongola.com) . With intense competition and home prices soaring, the median price of international purchases climbed to around $395,000 by late 2022(edgongola.com), up significantly from the prior years. Foreign buyers often paid above the area’s median, as many targeted vacation homes and resort-style properties in this desirable Gulf Coast market.
2023 Cooling Off Amid Market Headwinds. International buying activity eased in 2023, reflecting global economic headwinds and a cooled Florida housing market. Statewide, the number of foreign-buyer transactions dropped about 18% compared to the prior year(linkedin.com). In Southwest Florida, foreign demand likewise pulled back from the 2022 surge. Total international sales in the Bonita/Estero area fell, tracking the statewide decline. Canadians remained the largest group of buyers, but overall volumes were lower. Florida’s top five foreign buyer countries during 2023 shifted slightly – Canada still ranked #1, followed by Argentina, Colombia, Brazil, and the U.K. by number of purchases(edgongola.com) – indicating a growing presence of Latin American buyers even as some European demand waned. Many foreign buyers became more cautious due to high U.S. home prices and a strong dollar, and some deferred purchases. Notably, 68% of Florida realtors reported that at least one international client decided not to buy a Florida property in 2023, up from 62% a year prior, with cost being the top deterrent(linkedin.com) . Those who did buy were often in the higher end of the market, pushing the median foreign-buyer price to roughly $469,000 (versus about $395,000 for Florida homes overall)(edgongola.com)
2024 Resilient but Reduced Activity. Early data and trends into 2024 show international buying in Southwest Florida at a multi-year low in volume(edgongola.com). Florida experienced a further 44% plunge in foreign transactions in the year ending mid-2024 (edgongola.com), as global investors faced rising interest rates and continued high prices. This likely translates to only around 1,100–1,200 foreign buyer transactions in the Lee/Collier County region for the most recent year – a fraction of the pre-pandemic peak. Despite the slowdown, Canada continues to top the list of buyer origins (accounting for roughly 17% of Florida’s foreign buyers(edgongola.com) and a similarly high share locally), with Latin American countries like Argentina, Colombia, and Brazil collectively also significant in Florida and in the Southwest region(edgongola.com)
. U.K. buyers remain in the top five but in smaller numbers than before. The median prices of homes bought by international buyers stayed elevated in 2024 (well into the $400Ks), as foreign purchasers who remain in the market tend to be equity-rich cash buyers focused on higher-value vacation properties(edgongola.com)
2025 Outlook: Cautious Optimism. As we move into 2025, international buyer interest in Southwest Florida shows cautious signs of revival but remains sensitive to economic and policy factors. With Florida’s foreign-buyer volume having bottomed out in 2024, realtors anticipate a potential uptick if global conditions improve. Easing inflation and a slightly weaker U.S. dollar could bolster foreign purchasing power, while increased inventory may provide more opportunities. However, any growth in 2025 will likely be gradual – the consensus is that foreign demand will “take time to return to normal” market levels(edgongola.com). Canadians and Europeans are expected to continue leading the pack of buyers in the Bonita/Estero area, joined by investment-motivated Latin American buyers, provided that travel and financial conditions remain favorable.
Key Factors Influencing Foreign Buyer Trends
Economic Trends and Currency Exchange Rates Multiple economic forces have driven the rise and fall of international real estate investment in Southwest Florida. Global economic growth slowed from 2022 into 2023 (world GDP growth slipped to ~3.0% in 2023)(files.constantcontact.com), which tempered some foreign investors’ appetite. Many countries faced recession risks or economic uncertainty, leading some buyers to delay large purchases abroad. At the same time, the U.S. dollar’s exchange rate strengthened dramatically through 2022, reaching multi-decade highs against currencies like the euro and British pound. A strong dollar makes Florida homes more expensive for foreign buyers in their local currency. For example, by late 2022 the dollar’s surge meant European and Canadian buyers could afford fewer U.S. dollars for the same amount of home currency(files.constantcontact.com), effectively raising the price of Florida real estate for them. This currency effect contributed to the pullback in international purchases in 2022–2023. (By early 2023 the dollar had weakened slightly and stabilized(files.constantcontact.com), providing some relief to foreign buyers, but it remained high relative to pre-pandemic levels.) Simultaneously, inflation spiked in many economies (including the U.S.) in 2021–2022, prompting the U.S. Federal Reserve to rapidly hike interest rates. Higher interest rates impacted foreign buyers in two ways: First, for those needing financing, U.S. mortgage rates above 6–7% in 2023 dramatically raised borrowing costs compared to the ultra-low rates of 2020–2021. Second, even cash buyers felt the indirect effects – rising rates cooled the overall housing market and strengthened the dollar, as noted. Many foreign buyers in Florida do pay cash (about 67% of international buyers in Florida buy with all-cash(edgongola.com), far higher than the 50% cash share of foreign buyers nationally(edgongola.com), which insulated some from interest costs. Nonetheless, the high-rate environment reduced the leverage and speculative purchasing that can fuel international demand. In 2022 and 2023, global investors also had attractive alternative yields (e.g. higher bond and savings rates), which may have made expensive U.S. real estate investments less compelling. Overall, the economic backdrop of strong U.S. dollar, high inflation, and rising interest rates created significant headwinds for foreign buyer activity in Southwest Florida during this period(edgongola.com) .On the other hand, certain economic conditions motivated specific foreign groups to invest. For instance, economic instability in some Latin American countries (like hyperinflation in Argentina or political/economic turbulence elsewhere) spurred wealthy individuals to purchase Florida homes as a safe asset. This helps explain why Argentine buyers surged to become the #2 foreign buyer group in Florida by 2023(edgongola.com) – affluent Argentinians sought to hedge against their currency’s collapse by moving funds into U.S. real estate. Similar trends were observed with buyers from Colombia, Brazil, and Venezuela in recent years, as Florida property is seen as a stable store of value amid uncertainty at home. (bonitaesterorealtors.com)
Meanwhile, Canada’s housing market had become so expensive that many Canadians viewed Florida as a bargain by comparison(bonitaesterorealtors.com), especially given the lifestyle benefits. In summary, global economic trends cut both ways: broad conditions like exchange rates and interest rates curtailed overall foreign demand, while specific country-level issues drove some investors to Southwest Florida as a safe haven.
Political and Policy Changes Impacting International Buyers
Beyond economics, various political and regulatory factors have influenced foreign real estate purchases in Southwest Florida from 2020 to 2025. Travel and visa regulations played an outsized role during the pandemic: U.S. COVID-19 travel bans in 2020 and 2021 prevented or discouraged many overseas buyers from visiting and buying homes. For nearly 20 months (March 2020 to November 2021), most Europeans and other non-U.S. citizens faced heavy restrictions on entering the United States. Even Canadian snowbirds, who typically drive or fly south each winter, were largely shut out until late 2021(bonitaesterorealtors.com).
This policy-driven freeze on international mobility directly led to the plunge in foreign purchases in 2020–2021. As those restrictions lifted, we saw a policy-driven rebound: the reopening of U.S. borders in late 2021 unleashed a wave of deferred buyer demand in 2022(bonitaesterorealtors.com).
Visa policy (beyond pandemic measures) has generally remained favorable for foreign buyers – while there’s no specific “property purchase visa,” visitors can buy real estate on standard tourist visas or visa-waiver entries. One exception is the EB-5 investor visa program, which offers residency for large investments; it was temporarily lapsed in 2021 and reauthorized in 2022, but this affected a relatively small niche of buyers investing in development projects, not typical home buyers.
In recent years, state-level regulations have become a new factor in Florida. In 2023, Florida’s government enacted a law (Senate Bill 264) restricting property purchases by citizens of certain countries deemed “foreign countries of concern.” This law, effective July 2023, prohibits or limits real estate purchases by nationals of China, Russia, Iran, North Korea, Cuba, Venezuela, and Syria in Florida(hklaw.com). For example, non-resident Chinese persons are banned from buying any Florida real property (with narrow exceptions), and other targeted nationals cannot buy property near critical infrastructure or agricultural land.
While Canadians, Europeans, and most Latin American citizens are unaffected, the law has deterred some overseas buyers due to added scrutiny and closing requirements. Chinese buyers historically were a small segment in Southwest Florida, but this legislation virtually halted that segment entirely in 2023. The law has faced legal challenges (as of early 2024, parts of it were under injunction pending court review)(hklaw.com).
Nonetheless, its passage signaled a less welcoming stance for certain foreign investors and may have a chilling effect beyond the specific countries targeted. It’s worth noting that Florida’s move parallels actions in other states (and other countries) aiming to restrict foreign ownership of land for security or affordability reasons. For Southwest Florida, the practical impact of SB 264 is mostly on prospective buyers from China and a few other nations – a relatively small group – but the psychological impact may be larger, contributing to an atmosphere of caution among international buyers in 2023–2024.
Tax policy can also influence foreign investment. The U.S. did not implement any new national taxes on foreign homebuyers in this period (unlike Canada, which imposed a foreign buyer ban in 2023 for its own market). However, foreign owners in Florida are subject to the federal FIRPTA tax withholding upon resale of the property (generally 15% of the sale price is withheld for tax on capital gains for foreign sellers). While FIRPTA is long-standing, awareness of this tax can factor into foreigners’ purchase decisions and timing of sales. In addition, local property taxes for non-homesteaded (often non-resident owned) homes in Florida tend to be higher, and insurance costs have risen – all adding to the carrying cost for an international owner. These policy and cost considerations have made some foreign buyers more hesitant or selective. Overall, the policy environment in 2020–2025 included extraordinary travel bans, new state ownership restrictions, and ongoing tax obligations – a mix of factors that, on balance, added friction for international buyers in Southwest Florida.
Local Market Conditions (Inventory, Interest Rates, and Hurricanes)
Local real estate market conditions in Southwest Florida have also significantly influenced international buying activity. One critical factor was the housing inventory and competition in the Bonita Springs–Estero area. In the pandemic boom, housing inventory plunged to record lows – by late 2021, Naples area inventory was down to just over 1,000 homes, after a frenzied period of low interest rates and remote-work relocations(edgongola.com). Similarly, in Bonita/Estero, active listings in 2021 were a fraction of pre-pandemic norms, creating a seller’s market with multiple offers on desirable properties. This tight inventory meant foreign buyers (who often prefer to see properties in person) had fewer options and were frequently outbid by domestic buyers who were quick to move. In fact, out-of-state U.S. buyers flooded Florida during 2020–2022, drawn by its sunshine and remote-work appeal(edgongola.com), which increased competition for the limited homes. International buyers found themselves competing with cash-rich domestic migrants from the Northeast, Midwest, and California. This intense competition in 2021–2022 likely sidelined some foreign buyers who could not travel freely or who were not prepared to make snap purchases remotely(edgongola.com).
By 2023, however, the market began to normalize – inventory levels improved considerably. In October 2024, for example, Bonita/Estero single-family home inventory was up 34.8% year-over-year (to about 5.7 months’ supply) and condo inventory was up 57.5%(edgongola.com).
This increase in supply gave buyers more choices and leverage, a dynamic that can encourage patient foreign buyers who had been waiting on the sidelines. Indeed, by late 2024 the Southwest Florida market shifted toward balance, with many homes available and prices stabilizing. More normal inventory levels mean that in 2025 international buyers may find it easier to locate suitable properties without the frenzy of the prior two years. Another local factor is the impact of hurricanes and weather events. Southwest Florida endured a major hit from Hurricane Ian in September 2022, which caused severe wind and flood damage in parts of Lee and Collier counties. In the immediate aftermath, some transactions paused as infrastructure was repaired and insurers assessed damage. Pending sales dipped in the months after the storm(edgongola.com). A few foreign buyers, especially those unfamiliar with hurricanes, may have been deterred by images of destruction in Fort Myers Beach and Naples. Additionally, the storm exacerbated Florida’s property insurance crisis – insurance premiums jumped sharply after Ian (and other storms), adding to the cost of owning a home in coastal Florida. For example, some homeowners saw insurance costs double, which can particularly affect foreign owners who don’t benefit from homestead or other local credits. These factors could have dissuaded value-conscious international buyers in late 2022 and 2023.
That said, the region’s real estate market has proven resilient after hurricanes. By 2023, rebuilding was well underway, and buyers showed renewed confidence in the area’s long-term appeal. Local experts noted that “storm-ready” building practices and seasoned residents helped the Naples market bounce back quickly after Ian, reinforcing its desirability(edgongola.com).
In fact, property values in many affected neighborhoods recovered within months. Some foreign investors even saw opportunity in post-storm conditions – for instance, Canadians and Europeans have historically been willing to renovate or rebuild homes, so a storm-damaged property at a discount can attract opportunistic foreign buyers. Thus, while hurricanes temporarily disrupted sales and added cost uncertainties (insurance, repairs), they did not erase the fundamental demand from international buyers who seek Southwest Florida’s climate and lifestyle. By late 2024, closed sales volumes were improving again and the market had largely put hurricane impacts in the rearview(edgongola.com).
Finally, interest rate fluctuations on the local level played a role in financing. As noted, the majority of foreign buyers in Florida pay cash, but those who do finance often use either U.S. mortgages or international financing. The steep rise in U.S. mortgage rates in 2022–2023 made financing far more expensive. A foreign buyer who might have taken a small mortgage to buy a vacation condo in 2021 at 3% interest faced 7% rates by 2023, significantly raising the carrying cost. This likely pushed even more international buyers to either pay cash or hold off on buying until they could do so. Additionally, high interest rates cooled some of the speculative fervor in the market (fewer flippers and investors, both domestic and foreign), contributing to the lower international transaction counts by 2023(linkedin.com).
Conversely, the higher rates led to slightly softening prices by 2023–2024 (price growth stalled or dipped in some segments), which could make the market more accessible to strategic foreign buyers going forward. In essence, the local market conditions – from inventory swings to hurricane seasons to interest rates – created a moving target that foreign buyers had to navigate. When inventory was scarce and storms looming, many pulled back; as inventory improves and the market stabilizes, we can expect international buyers to regain confidence, albeit selectively.
Conclusion
In summary, international real estate transactions in the Bonita Springs and Estero area of Southwest Florida saw a roller-coaster ride from 2020 to 2025. The pandemic-induced collapse in foreign buying in 2020–2021 was followed by a robust rebound in 2022 as travel resumed and pent-up demand was unleashed. By 2023, however, economic and policy headwinds – from a strong dollar and high interest rates to new foreign ownership laws – led to another decline in overseas investment. Throughout these years, Canada has consistently remained the top country of origin for foreign buyers in Southwest Florida, with European nations (notably the U.K., Germany, and France) and Latin American countries (such as Brazil, Colombia, and Argentina) rounding out the top five sources(bonitaesterorealtors.com).
The median prices of homes bought by international buyers have trended upward into the $400,000–$500,000 range by 2024(edgongola.com), reflecting both the general appreciation of the market and foreign buyers’ focus on higher-end vacation properties. The trends observed are largely data-driven: foreign buyer numbers peaked at roughly 23,700 statewide in 2022 and fell to about 10,900 by 2024(miamirealtors.com), with Southwest Florida’s share following suit. Reasons behind these shifts are grounded in tangible factors – currency exchange rates that altered purchasing power, economic cycles that affected wealth and confidence, and political decisions that opened or closed doors to international purchasers. It is clear from the analysis that no single factor dictates foreign buying activity; rather, it is the combination of global economics, domestic policy, and local market dynamics that determines whether an investor from Toronto or London decides to close on a home in Bonita Springs. Going into 2025, the outlook remains neutral to cautiously optimistic. Should inflation continue to ease and the U.S. dollar moderate, foreign interest could pick up. Florida’s appeal as a sun-soaked, tax-friendly destination is undiminished – a fact underscored by its perennial rank as the #1 state for international home buyers(theswfl100.com).
As long as Southwest Florida continues to offer a desirable lifestyle and investment value, international buyers are likely to remain an integral, if sometimes fluctuating, part of the real estate landscape. The recent volatility in foreign transactions underscores how sensitive this segment is to broader forces, but history suggests that overseas demand will return as conditions normalize, keeping Southwest Florida a truly global real estate market.
Sources: Official Florida Realtors reports and NAR studies on international home buyers(edgongola.com);
local Bonita Springs-Estero Realtors market data and press releases(bonitaesterorealtors.com)
economic insights from the IMF and Visit Florida on tourism and currency trends(files.constantcontact.com)
and news analysis of policy changes such as Florida’s 2023 foreign ownership law(hklaw.com)
These data and reports provide the empirical basis for the trends and explanations discussed above, ensuring a fact-based, neutral perspective on the factors affecting foreign buyers in Southwest Florida.
