Foreign Property Buyers in the USA: Statistics from the Realtors Association
Foreign buyers of real estate continue to show interest in the US market, despite a decrease in overall transactions. According to statistics from the National Association of Realtors, from April 2022 to March 2023, foreigners purchased 84,600 properties in the US, which is 14.2% less than the previous year. This figure is the lowest since 2009.
However, it is interesting to note that the decline in sales was driven by immigrant foreigners who already live in the US. They reduced the number of transactions by 31% as property prices in the US continue to rise and loans become more expensive.
Table 1: Real Estate Transactions by Foreign Buyers in the US
| Period | Number of Transactions |
|---|---|
| April 2022 – March 2023 | 84,600 |
| One year prior | 98,600 |
| Change | -14.2% |
| Comment | Lowest figure since 2009 |
Table 2: Average and Median Transaction Amount with Foreign Buyers in the US
| Average Transaction Amount | Median Transaction Amount |
|---|---|
| $639,000 | $396,000 |
The average transaction amount with foreigners is $639,000, while the median amount is $396,000. This difference is explained by the fact that 15% of foreign buyers purchased properties worth over $1 million.
On the other hand, foreign investors without local residency permits increased the number of transactions by 20%. Apparently, they are not deterred by the issues faced by the American market.
Table 3: Top 5 Foreign Buyers of Real Estate in the US
| Rank | Country |
|---|---|
| 1 | China |
| 2 | Canada |
| 3 | Mexico |
| 4 | India |
| 5 | Colombia |
However, the share of foreign buyers still remains low. They account for only 2.3% of the total number of transactions. In comparison to Cyprus, where the share of foreign buyers is over 30%, the US real estate market is not as heavily reliant on international demand.
China, Canada, Mexico, India, and Colombia are the top 5 countries from which foreign real estate buyers come to the US.
Table 4: Top 5 States Popular Among Foreign Buyers of Real Estate in the US
| Rank | State |
|---|---|
| 1 | Florida |
| 2 | California |
| 3 | Texas |
| 4 | North Carolina |
| 5 | Arizona |
Florida, California, Texas, North Carolina, and Arizona are the most popular states for foreign real estate buyers in the United States.
Florida and California are in high demand among foreign real estate buyers in the US for several reasons.
- Firstly, both states have attractive climates and beautiful beaches, making them popular places for purchasing vacation homes and second homes. For example, Florida is known for its warm climate and stunning beaches in Miami and Orlando, while California is famous for its sunny coastline and cities like Los Angeles and San Francisco.
- Secondly, both states offer diverse opportunities for real estate investment. Florida, for instance, has a developed rental market and attracts tourists from all over the world, making it appealing to investors. California, on the other hand, is a hub for the technology industry and has a high demand for real estate due to cities like San Francisco and Silicon Valley.
- It is also worth noting that both states have diverse cultures and numerous entertainment and cultural events, which attract foreign buyers looking for not only real estate but also a high quality of life.
- Lastly, Florida and California offer diverse educational and employment opportunities, making them attractive to foreign buyers seeking opportunities for their children’s education or relocation for work.
Overall, despite a decrease in foreign buyer activity, the American real estate market remains attractive to international investors who continue to purchase property in the US. This demonstrates the stability and reliability of the American market, despite some internal issues.
