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 U.S. real estate is owned by China? ›While Chinese ownership of U.S. land has been a hot topic among lawmakers — even becoming the center of a Montana Senate race this year — China only had a stake in 383,935 acres of U.S. land as of 2021, which is less than 1% of all foreign-held land.
What percentage of U.S. real estate is owned by foreign investors? ›But the percentage of homes in the U.S. owned by non-Americans is usually pretty small — between 2% and 3%. The percentage of commercial real estate owned by foreign investors is a lot higher — or at least it has been.
Why are Chinese buying homes in California? ›Many of the homes were not even occupied but were simply a place to park wealth outside of China. Due to limits on how much cash Chinese citizens were allowed to move out of the country, many purchases were made by groups of Chinese individuals aggregating their funds.
How much of NYC is owned by China? ›The latest reports suggest Chinese ownership hovers around 380,000 acres, which sounds impressive until you realize that's roughly twice the size of Central Park. New York City itself? A measly 193,700 acres. So, China could maybe fit two fancypants parks in NYC, not the whole dang enchilada.
Is China buying up American homes? ›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. Click to access available viewer actions.
Who does China owe debt to? ›[2] A report by the credit rating agency S&P Global in 2022 estimated that 79 per cent of corporate debt in China was owed by SOEs (the IMF does not break down the proportion of debt owed by SOEs).
What foreign country owns the most American land? ›However, China doesn't own the most farmland in the U.S., according to a new USDA report. It's actually Canada, which accounts for 32%, or 14.2 million acres. Rounding out the top five are the Netherlands at 12%, Italy at 6%, the United Kingdom at 6% and Germany at 5%.
Who is buying U.S. real estate? ›Chinese buyers made up the largest share of major foreign buyers of property in the United States in 2023. In that year, 13 percent of residential properties were purchased by Chinese buyers. That amounted to an aggregate value of 13.6 billion U.S. dollars.
What percentage of U.S. housing is owned by investors? ›Nationwide, institutional investor-owned homes account for about two to three percent of rental homes, according to GAO. But in some cities, it's as high as 25 percent. The findings show there is an especially high concentration of investor-owned rental homes in the southeast.
How much land does China own in the US map? ›
Foreign entities own a total of 40 million acres of U.S. farmland and China has bought up nearly 347,000 acres, according to the U.S. Department of Agriculture (USDA).
Which city in California has the most Chinese? ›The Los Angeles County city of Monterey Park has the highest percentage of Chinese-Americans of any municipality, at 43.7% of its population, or 24,758 people.
Who is buying up land in California? ›Flannery Associates has been grabbing plots of land in Solano County, about 60 miles from San Francisco, for the past five years. The company has spent about $800 million to purchase tens of thousands of acres of farmland with the support of tech billionaires, including Marc Andreessen and Laurene Powell Jobs.
Where does China own property in the United States? ›China owns 384,000 acres of American agricultural land. That's a 30% increase just since 2019. And on top of that, they own land near an air force base in North Dakota.
How many companies does China own in the USA? ›As of the end of 2022, data indicates the operation of around 5,000 Chinese-owned companies in the United States, spanning diverse industries such as technology, manufacturing, finance, and real estate.
Who owns most of New York? ›The city of New York has emerged as the largest landowner in the state, with an impressive portfolio that includes 362.1 million square feet of properties and nearly 5,000 parcels of land and buildings across the city. The city has two important landmarks: the David N.
How much of the U.S. stock market is owned by China? ›The TIC data suggest Chinese investors held $245 billion in equity securities and $24 billion in debt securities issued by US corporations, plus another $1.2 trillion in US government securities at the end of September 2020.
How much U.S. business is owned by China? ›As of the end of 2022, data indicates the operation of around 5,000 Chinese-owned companies in the United States, spanning diverse industries such as technology, manufacturing, finance, and real estate.
What percentage of homes are owned by investors in the USA? ›The sizable U.S. home investor share seen over the past two years held steady going into the summer. In March 2023, investors accounted for 27% of all single-family home purchases; by June, that number was almost unchanged at 26%.
How much Chinese wealth is in real estate? ›Housing assets accounted for 79 percent of the total household wealth in urban China but only 61 percent in rural China, an 18 percent difference.