Foreign investment in U.S. real estate has hit lows unseen in a decade, according to the National Association of Realtors.
New numbers show that international buyers purchased 107,000 U.S. residential properties from April 2020–March 2021, down 31 percent from the previous year, and the lowest volumes since 2011. In terms of income, that haul represents $54.4 billion, down 27 percent year-over-year.
Foreign buyers who resided in the U.S. as recent immigrants or visa holders purchased $32.4 billion worth of U.S. existing homes—a 21 percent decrease from the prior year and representing 60 percent of the dollar volume of purchases. Foreign buyers who lived abroad purchased $22 billion worth of existing homes, down 33 percent and accounting for 40 percent of the dollar volume.
International buyers accounted for 2.8 percent of the $5.8 trillion in existing-home sales during that time period, according to NAR.
For the 13th straight year, Florida remained the top destination for foreign buyers, accounting for 21 percent of all international purchases. California came in at #2 with 16 percent of international sales, followed by Texas with 9 percent and Arizona at 5 percent, while New Jersey and New York tied at 4 percent.
According to NAR, 43 percent of foreign buyers purchased the property for primary residence use. Nearly half of said international buyers purchased in the suburbs, while 28 percent bought a home in an urban area. Seven percent of foreign buyers bought property in a resort area, down from 17 percent in 2012.
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