The City of Angels is losing ground to international homebuyers, with new data showing foreign buyers are increasingly looking elsewhere as the city’s share of real estate profits continues to slide.
Los Angeles accounted for 4.6% of the world’s home buying traffic in the first quarter of 2026, down significantly from 7.9% in the first quarter of 2020, according to a report from Realtor.com.
The decline has spread to almost every major region of the world.
Among buyers from North America, Los Angeles’ share of international profits fell from 5.8% in the first quarter of 2025 to 3.3% this year. Interest from Europe decreased from 8.9% to 5.7%, while interest from Asia decreased from 8.9% to 6.1%.
The biggest decline came from Oceania, where Los Angeles’ share of domestic shopping traffic was cut almost in half, falling from 18.2% to 9.3% last year.
The findings show foreign buyers who once gravitated to Southern California are increasingly placing their goods in other US cities.
While Los Angeles remains the third most popular destination for international buyers, it is now behind Miami, which controls 10.3% of international demand, and New York, which attracted 4.7%.
Other cities are also benefiting. The report found that Dallas has become more popular among buyers from North America, South America, and Oceania, while Miami continues to attract strong interest from European buyers, and New York has gained popularity among buyers from Asia.
This points to a growing affordability gap between Los Angeles and competing markets, with researchers noting that less expensive cities are becoming more attractive to overseas buyers.
Meanwhile, Los Angeles Mayor Karen Bass’ policies continue to add insult to injury, as rival cities race to attract investors, residents and homebuyers while LA struggles to maintain its one core appeal.
The change marks a dramatic turnaround in one of the world’s most dynamic real estate markets, as six years of declining international interest suggest Los Angeles is becoming the world’s most salable area.
