California is experiencing a notable increase in interest from foreign real estate buyers, particularly in the Los Angeles luxury housing market, as the state's proposed wealth tax prompts billionaires to leave the state [1]. According to an analysis by Realtor.com, international demand for luxury homes in Los Angeles rose by 18.2% by the end of last year, following the wildfires that devastated Southern California in January 2025. This demand eased somewhat at the start of 2026 [1]. At its peak, nearly 20% of luxury home shoppers in the LA metro area were from abroad, highlighting the region's appeal to high net worth individuals seeking residency, investment properties, or wealth preservation [1].
Canadian buyers represented the largest share of international interest at 29%, followed by the United Kingdom (10%), Australia (8%), Germany (6%), and Mexico (3%) [1]. The Los Angeles metro area is now the second most expensive luxury housing market in the U.S., with the top 10% of listings starting at $4.255 million as of March, just below Bridgeport, Connecticut ($4.299 million) and ahead of Kahului, Hawaii ($4.192 million) [1]. The entry-level price for luxury homes in LA is more than three times the national median, which stands at $1.25 million. This threshold has decreased by 8.9% from the previous year [1].
While specific data on cash purchases by foreign buyers in LA is not available, the National Association of Realtors reported in July that nearly half of all foreign buyers in the U.S. paid all-cash, compared to 28% of domestic buyers [1]. Victor Currie, a real estate agent at Douglas Elliman Real Estate, described Los Angeles as a "safe-haven market for global investors," noting that despite feeling overpriced by average standards, LA is considered a relative bargain compared to cities like London, Sydney, or Hong Kong [1]. Currie emphasized that LA's enduring appeal lies in its mix of lifestyle, weather, culture, and global financial power [1].
The outflow of billionaires from California in the past year is attributed to the anticipation of the state's potential implementation of a wealth tax, further fueling the shift in market dynamics and increasing foreign interest in LA luxury real estate [1].
CONCLUSION
The Los Angeles luxury real estate market is attracting significant foreign interest as California's proposed wealth tax drives wealthy residents out of the state. Despite high prices, LA remains appealing to international buyers seeking investment and lifestyle advantages. The market is expected to remain robust, with global demand offsetting domestic outflows.