Global Property Buyers: Study Shows Countries Investing Most in US Real Estate

The Mommies Reviews

Data reveals North American neighbors account for 13% of foreign US property purchases, outpacing Asian and European investors

Key findings:

  1. Canada tops list of foreign investors in US real estate, with 13% of international property buyers originating from the country
  2. China, Mexico tie for second place, each representing 11% of foreign US property purchases
  3. European countries show surprisingly low investment levels, with France accounting for just 1% of foreign buyers

The US housing market is drawing in buyers from all over the world, and a new study has just revealed who exactly is snatching up the most American real estate. SoCal Home Buyers dug into the numbers to see which countries are leading the pack when it comes to investing in US properties.

SoCal Home Buyers conducted an in-depth analysis of recent property purchase data to determine what percentage of foreign buyers investing in US real estate come from which countries. The study ranked these countries based on their investment levels.

This information provides valuable insight for anyone in the real estate game – from agents and investors to policymakers. It shows how global economic changes and shifting international relationships are affecting the US housing scene. With the market constantly changing, knowing these international trends can help navigate the world of real estate.

Top 5 Countries Investing in US Real Estate

Below are the top five countries investing in U.S. real estate, with Canada leading the market, followed by China and Mexico. The data highlights key international players in the U.S. property market.

RankCountryShare of US Property Buyers (%)
1Canada13%
2China11%
2Mexico11%
4India10%
5Colombia4%

Canada stands out as the frontrunner in foreign investment in US real estate, snapping up 13% of international property purchases. This shouldn’t come as a shock, given the close ties between the two nations. In fact, the US and Canada are each other’s largest trade partners, with a staggering $3.6 billion worth of goods and services crossing the border each day in 2023.

China and Mexico are tied for second place, each accounting for 11% of foreign US property buyers. Chinese foreign direct investment in the US totaled $28 billion in 2023, highlighting the continued economic ties between the two countries.

Mexico’s high ranking stems from close cultural connections and USMCA trade links, not to mention the 37.2 million Mexican-Americans who call the US home.

India isn’t far behind, making up 10% of foreign property buyers in the US. This substantial slice of the pie likely comes from the large Indian-American community, India’s booming economy, and the growing business links between the two countries.

Rounding out the top five is Colombia, representing 4% of foreign US property buyers. While it’s a smaller percentage, it’s still significant and could signal a rising interest in US real estate among Latin American investors.

Bottom 5 Countries Investing in US Real Estate

Below are the bottom five countries investing in U.S. real estate, with France and Japan having the smallest share of property buyers. This data highlights the countries with the least engagement in the U.S. property market.

RankCountryShare of US Property Buyers (%)
1France1%
1Japan1%
3Germany2%
3Brazil2%
5United Kingdom3%

When examining the countries investing the least in U.S. real estate, France tops the list. With its real estate market struggling due to falling prices and slow construction activity, French investors are largely focused on domestic challenges rather than international opportunities.

Japan follows, with modest residential property price increases despite a slowdown in demand. This stable yet unremarkable growth keeps Japanese investments closer to home, limiting their engagement in the U.S. market.

Germany, after a decade of rising house prices, now faces hurdles with higher mortgage rates and inflation, reducing affordability and curbing interest in U.S. property investments.

Brazil, though experiencing growth in its housing market due to strong demand and increased construction, remains focused on capitalizing on domestic opportunities rather than looking abroad.

The UK rounds out the list, with its housing market struggling amid declining property demand. This has led British investors to adopt more cautious strategies, resulting in minimal investment in U.S. real estate. These factors collectively explain the restrained U.S. property investments from these countries.

Doug Van Soest, Co-founder of SoCal Home Buyers commented:

“These findings highlight some interesting trends in foreign investment in U.S. real estate. While it’s not surprising to see strong participation from Canadian, Chinese, and Mexican investors due to their geographical and economic connections, the lower investment levels from major European economies like France and Germany, as well as Japan, are worth noting. 

“This suggests there might be untapped potential in these markets for U.S. sellers and developers who can effectively reach out to these investors. Understanding these dynamics is crucial for those looking to maximize opportunities in an increasingly global real estate market.”

ENDS

Link

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About SoCal Home Buyers

SoCal Home Buyers is a professional Real Estate Investment company, founded by Husband & Wife, Doug & Andrea Van Soest. They help homeowners with Real Estate they need to sell quickly, or that’s causing a problem.

Methodology 

This study analyzed recent property purchase data to determine the percentage of US real estate buyers from various countries. The data was compiled and analyzed to rank countries based on their share of foreign property buyers in the United States.

Sources used in analysis: 

Data on Chinese foreign investment in the US: Statista

Data on US and Canada trade relationships: canada.ca

Data on stats on Mexican-Americans in the US: Statista

Data on Japan, UK, Germany, France and Brazil economic conditions: globalpropertyguide.com

Thank you,

Glenda, Charlie and David Cates

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