The power couple recently placed an offer on a plush pad in Beverly Hills but they have lost out on the abode to Swedish video game designer Markus Persson, who is said to have stumped up the $70 million needed to buy the house.
According to gossip website TMZ, Beyoncé, 33, and Jay, 45, have told close friends they haven't found anything else they really like in the area so have decided against continuing their search for another possible property to purchase for now.
Just last month it was reported the pair were preparing to make an offer for an $85 million Beverly Hills estate after visiting the abode six times.
The couple - who have three-year-old daughter Blue - were thought to be frontrunners for the eight-bedroom home and real estate agent Branden Williams was quoted as saying he thought they could well tie up a deal "by Christmas".
But LA is not the only place the pair have been house-hunting as they were also said to have been looking at places in Paris after falling in love with the French city.
An insider recently said: "They want to buy a place in Paris because they have so many memories there and they want to be able to be there more often. They plan on retiring in Paris eventually."
What's more, Beyoncé and Jay were even looking into the possibility of getting French lessons for their daughter ahead of their potential property purchase.
A source said: "They've said they want Blue to learn French."