Foreign Investment in the US Real Estate 2023 [Statistics]
Advancements in communication and transportation technologies have increased the rate of globalization has exponentially increased in the past decade. Initially tied to trade, the modern global economy is now inextricably intertwined, more than ever.
Thousands of different business sectors, hundreds of nations, thousands of separate companies, and various types of markets are all participating together in the contemporary world economy. And the real estate market is no exception.
Foreign nationals buying US property is not an entirely new thing but has had a much bigger impact on the US real estate market in the past 20 years. For example, foreign investment in US real estate since 2009 has surpassed 1,2 trillion dollars. And that’s just one out of many statistics about foreign investors in US real estate. If you want to learn more about this topic and see the newest 2023 statistics, just keep reading.
Foreign Investment In US Real Estate: Key Statistics
Here are some key statistics about foreign investors in US real estate:
Foreign Investment in US Real Estate: Financial Statistics
- 42% of all foreign nationals purchased US real estate property via the all-cash option.
- Between April 2022 and March 2023, foreign nationals have spent $53,3 billion buying real estate property in the US. This amount of money is equal to 2,3% of all money spent on the US real estate market during said period ($2,3 trillion).
- 86,400 homes were sold to foreign buyers in the US during a 1 year period between April 2022 and March 2023.
- The median value of a property that foreign nationals bought is $396,400.
- 58% of all foreign investors in US real estate bought their property via investment loans and other financing options.
- Half of all foreign nationals that bought US real estate, use those properties as vacation homes, short-term rentals, or both.
- 55% of foreign buyers purchase US property located in urban areas.
- The amount of money foreign nationals spent on US real estate is down by 9.6% in 2023 when compared to the numbers for 2022 ($53,3 billion in 2023, as opposed to $59 Billion for 2022). The most likely cause for this is the increase of US interest rates, which went up from 2% in April 2022 to 5,5% as of November 2023.
Total Foreign Investments in US Real Estate
Below is a table that shows the total amount of money foreign nationals have spent buying real estate properties in the US, since 2009.
| Year | Money spent in US real estate by foreign nationals |
| 2009 | 38,8 billion US dollars |
| 2010 | 66 billion US dollars |
| 2011 | 66,4 billion US dollars |
| 2012 | 82,2 billion US dollars |
| 2013 | 68,2 billion US dollars |
| 2014 | 92,2 billion US dollars |
| 2015 | 103,9 billion US dollars |
| 2016 | 102,6 billion US dollars |
| 2017 | 153 billion US dollars |
| 2018 | 121 billion US dollars |
| 2019 | 77,9 billion US dollars |
| 2020 | 74 billion US dollars |
| 2021 | 54,4 billion US dollars |
| 2022 | 59 billion US dollars |
| 2023 | 53,3 billion US dollars |
Source: National Association of Realtors
Top 5 Countries That Invest in US Real Estate
Foreign investors looking to buy US real estate come from all around the world, but there are six countries that particularly stand out. They are:
1.China
Between April 2022 and March 2023, the citizens of China have collectively spent over $13,6 billion investing in US real estate. The investments made from China account for around 13% of the total amount of all foreign investment in the United States real estate market.
2. Mexico
11% of all foreign buyers that have invested in the US real estate between April 2022 and March 2023 are legal citizens of Mexico. During said period, the amount of money Mexicans have spent buying US realty is around $4,2 billion.
3. Canada
Investors from Canada comprise 10% of all foreign buyers that have invested in US real estate between April 2022 and March 2023. Although 3rd on the list based on the number of foreign citizens that bought US real estate, the Canadians have actually spent the 2nd most amount of money, out of all foreign buyers. That amount adds up to $6,6 billion.
4. India
7% of all foreign buyers of US real estate are citizens of India. Collectively they have invested over $3,4 billion in the US real estate market between April of 2022 and March of 2023.
5. Colombia
Foreign buyers from Columbia have collectively spent around $900 million investing in the US real estate market. Colombian citizens account for 3% of all foreign inventors that have bought property in the US between April 2022 and March 2023.
Other Countries That Invest in US Real Estate
The top five countries that invest in US real estate comprise a little bit above 44% of the entire market share (all foreign nationals that bought US property in 2023). Other notable countries that invest in US real estate and together with the five mentioned above, hold around 56% of the entire market share and create the top ten list are:
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- United Kingdom — UK citizens represent 3% of all foreign buyers that have purchased real estate property in the US, in 2023.
- Australia — Australian nationals comprise 3% of foreigners who bought US property in 2023.
- Germany — 2% of all foreign buyers are from Germany.
- Venezuela — The citizens of Venezuela have made 2% of all foreign real estate purchases in the US.
- Israel — Israelis represent 2% of all foreign buyers that bought US property in 2023.
The total dollar amount that the buyers from top 10 countries spent on US property is close to $30 billion (out of the $53,3 billion that all foreign buyers spent in 2023).
Average US Real Estate Price for Top 5 Countries
- In 2023, all Chinese nationals that bought US real estate, have spent an average of $1,234,500 per property.
- The average price of a US property that Mexicans have purchased in 2023 is $448,800.
- Canadian citizens have spent an average of $779,300 per US property in 2023.
- The citizens of India have purchased US properties with an average value of $576,500 in 2023.
- Colombians have the lowest average property price, amongst the top 5 foreign buyers, and it’s $355,400.
Foreign Investors in US Real Estate: Top 5 Destinations
Foreign buyers of US real estate purchase property all across the entire country. But, there are some places that are especially popular amongst them. They are:
- Florida — 23% of all foreign investors bought real estate property in Florida.
- California — 12% of foreign buyers invested in the California real estate market.
- Texas — 12% of foreign investment in US real estate, between April 2022 and March 2023 was in the state of Texas.
- North Carolina — 4% of all foreign investors have bought property in North Carolina.
- Arizona — 4% of all foreign investors that bought property in the US (between April 2022 and March 2023), have done so in the state of Arizona.
Top 5 Destinations for Chinese Buyers
- 33% of all Chinese buyers have purchased property in California.
- 16% of all Chinese that have bought US real estate property, did so in Florida.
- In 2023, 8% of all Chinese nationals that purchased US realty, spent their money in Texas.
- 6% of all Chinese buyers bought US property in Colorado.
- 6% of all Chinese buyers that purchased US property in 2023, did so in the state of New York.
Top 5 Destinations for Mexican Buyers
- 48% of all Mexicans that bought US real estate in 2023, did so in the state of Texas.
- 18% of Mexican buyers bought real estate in California.
- 6% of Mexican citizens purchased real estate in Ohio.
- 4% of Mexican buyers bought property in the state of Arizona.
- 4% of all Mexican buyers that bought property in the US, did so in the state of Florida.
Top 5 Destinations for Canadian Buyers
- 55% of Canadians bought property in Florida, in 2023, making this state a top destination.
- 14% of Canadian buyers bought US realty in Arizona.
- 4% of Canadians purchased property in the state of California.
- 4% of Canadians that purchased US property, did so in the state of Louisiana.
- 4% of Canadian citizens that bought US property in 2023, chose Montana.
Top 6 Destinations for Indian Buyers
- 20% of Indian buyers purchased property in the state of California.
- 14% of all Indian citizens that purchase US real estate, did so in the state of Pennsylvania
- In 2023, 11% of all Indian nationals that bought US property chose the state of Texas to spend their money in.
- 9% of all Indian buyers bought property in Alaska.
- 9% of all Indian buyers bought property in Illinois.
- 9% of all Indian buyers bought property in the state of North Carolina.
Top 3 Destinations for Colombian Buyers
- 80% of all Colombian buyers chose Florida as their main destination to purchase US real estate property, in 2023.
- 13% of Colombian nationals that bought US real estate in 2023 did so in the state of California.
- 7% of Colombian citizens who bought US property in 2023 chose the state of Illinois.
Main Types of Properties That Foreign Nationals Bought
Foreign nationals purchased various types of properties in the US. The 2023 statistics about that are as follows:
- Over half of all foreign buyers (59%) bought single-family homes.
- 17% of all foreign buyers purchased townhouses.
- 15% of all foreign buyers bought condominiums with them being the most popular with Canadian citizens (18% of all Canadian buyers bought condominiums in 2023).
- 4% of all foreign buyers bought residential land.
Main Reasons Why Foreigners Opted Out of Buying US Real Estate
Sixteen percent of real estate agents that are a part of the National Association of REALTORS stated that they worked with a foreign client who opted out of buying property in the US. The main reasons for that are:
- The price of the property.
- Not being able to find their ideal property in the US;
- Not being able to find good lenders and affordable financing (or financing that foreign nationals deem affordable).
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