In 2018, Chinese accounted for roughly 25% of foreign investment in the U.S. Residential real estate. In fact, Chinese investors have been the biggest buyers of U.S. residential properties for six consecutive years. But what will be the consequence of this trade tension between the U.S. and China, in the real estate sector? ListGlobally's consumer traffic data has shown that in 2018, the Chinese consumers were the one's that displayed a higher interest for U.S. properties. These purchase trends were confirmed and in 2018, as we can see on the National Association of Realtors Report, Chinese buyers spent$30.4 billion dollars on residential property in the U.S. If we analyse the data in a more global level, residential and non-residential, we see that 284,000 properties were sold to foreign buyers last year, and the Chinese bought 40,400 properties. Overall, they represent 15% of all foreign transactions. We remind you that five years ago, the Chinese purchased only23,075 homes, which means a growth of almost 50% on the number of properties sold. Foreign buyers tend to spread their investments across the country. But the Chinese nationals concentrate their residential real-estate investment on the Pacific Coast. Almost 40% of Chinese buyers have purchased in California. However they are also strong players incollege towns, as they still prefer theAmerican education for their kids, or in places likeNew York City, Florida and Texas. Chinese buyers purchased residential properties that were more expensive than properties purchased by other foreign buyers, however this is connected to the areas in the U.S. where they choose to buy. Even though they tend to buy properties in places that are more expensive, between 2017 and 2018,we see that the average purchaseprice decreasedas buyers tend to search for affordable properties, as we can see on the graphic below. According to NARS report, more than half Chinese, fifty-eight percent (58%), made an all-cash purchase. A majority of Chinese buyers purchased property in a suburban areas, and almost half of the purchases were for primary residential use. Note that Chinese nationals prefer the American education style for their children. The trade dispute between the U.S. and Chinais hot. Washington and Beijing imposed higher tariffs on imports and the negotiations between the two countries seems that is just getting started. Buying property in the U.S. is becoming more expensive for Chinese buyers. On the other hand, in China there is a discussion aboutcreating stricter rules to control the capital, especially when it comes to taking money out of the country to buy a property in America. Even though the political uncertainty, sales results in 2019 are expected to be similar to 2018. ListGlobally is the world's largest network of property portals. We work with real estate agents to promote their listings worldwide. If Chinese buyers is a focus for you, please don’t hesitate to get in touch with us to discuss the topic and see how we can help you market your properties to Chinese buyers.Chinese invested big in U.S. residential real estate during 2018
Chinese residential real estate investment is highly concentrated on the Pacific Coast
Chinese buyers purchased more expensive homes
Sales results in 2019 are expected to be similar to the 2018 levels
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FAQs
25% of foreign investment in U.S. residential real estate was made by Chinese? ›
25% of foreign investment in U.S. residential real estate was made by Chinese. In 2018, Chinese accounted for roughly 25% of foreign investment in the U.S. Residential real estate. In fact, Chinese investors have been the biggest buyers of U.S. residential properties for six consecutive years.
How much of US real estate is owned by China? ›China owns roughly 384,000 acres of U.S. agricultural land, according to a 2021 report from the Department of Agriculture.
What percentage of American homes are owned by China? ›How have Chinese and Canadian investments developed over time? The share of Chinese investors in the U.S. real estate market remained somewhat constant until 2018 when it hovered at around 15 percent, before dropping to 11 percent in 2019 and then six percent in 2021.
What percentage of US real estate is foreign investment? ›For the 14th straight year, Florida remained the top destination for foreign buyers, accounting for 24% of all international purchases. California ranked second (11%), followed by Texas (8%), Arizona (7%), and New York and North Carolina, tied at 4%.
Does China store 70% of its wealth in real estate? ›In play now in China, where around 70% of household wealth is in property, this phenomenon is weighing on the post-pandemic recovery of household consumption, which Chinese policymakers have vowed to make a more prominent driver of economic growth.
Who owns the most US real estate? ›Who Is the Largest Landowner in the U.S.? The largest landowners in the United States are the Emmerson family, with 2,330,000 acres of land.
What country owns the most real estate in the United States? ›Canadian investors lead this pack, by a long shot, with nearly 9.4 million acres of U.S. land — more acreage than 44 of the top 50 foreign landowners combined, according to the report. (These people own the most land in America.)
Are Chinese buying up US real estate? ›Chinese investors are among the top foreign purchasers of residential real estate, along with Canadians, according to the National Association of Realtors. Other states have had concerns over foreign ownership of land and have made efforts to regulate it.
Is China buying US real estate? ›Chinese buyers accounted for 6 percent of all foreign U.S. residential real estate purchases from April 2021 to March 2022, according to the National Association of Realtors. Buyers from China, Hong Kong and Taiwan spent $6.1 billion on those deals.
How much real estate does China own in New York City? ›According to the U.S. Department of Agriculture's (USDA) latest report on foreign ownership of American land, from 2021, 146 Chinese investors held 383,935 acres—nearly double the 193,700 acres that comprise New York City.
How much assets does China own in the US? ›
China owns and controls almost 192,000 acres of farmland right here in the United States. To be clear, it's not a huge percentage of our total farm acreage by any stretch. According to the FDA, there are more than 35 million acres of farmland in the U.S. which are owned by foreign investors.
Why are Chinese investors buying US real estate? ›Many Chinese and Hong Kong nationals may find this an intriguing option because of the relatively cheaper housing prices in the United States (compared to metro areas of other western countries) and the availability of coastal area properties in many country locations.
Is China buying homes in the US? ›Chinese investors were the most active buyers of US real estate last year among foreigners — spending a record $6.1 billion on homes mainly in Florida and California, according to the National Association of Realtors.