Have you ever wondered where foreign investors are putting their money into the real estate market? If so, this is the article for you. We’ll take you through the 6 most popular markets for investment, why they’re so popular, and what percentage of foreign investment in the US real estate market they make up. Without further ado, here are the states foreigners love to invest in.
6. New York
3% of real estate purchases by foreign investors are in New York, making it the 6th most attractive state for foreign investment. Investments from Asia and the Caribbean play a large role in these purchases, as investors know that New York State is a great place to put their money. It’s definitely one of the more stable real estate markets – as it’s highly transparent and under-leveraged.
In a virtual tie with New York, Illinois also attracts 3% of foreign investors. You may not realize it, but Illinois proudly boasts the 5th largest state economy in the USA, and it’s one that is extremely diverse (think everything from food production and automotive to financial services and beyond). It’s a great place to live and work, which definitely helps keep the market stable.
Arizona, believe it or not, actually accounts for the same amount of real estate investment via foreigners as New York and Illinois combined. Canadian, Mexican, and Chinese investors have been quick to snatch up property and take advantage of the low prices and high temperatures. Even with a strong dollar, investors are still flocking to Arizona.
Making up 9% of all foreign real estate investment in the USA, Texas is only becoming more popular. In fact, on Forbes latest ‘Best Buy Cities‘ article for 2015, 5 of the 20 cities listed were from Texas – 25% of the entire list. Austin, Houston, Dallas, San Antonio, and Fort Worth all made the top 10. While shaky oil prices have affected some prices, the majority of the cities listed have diversified economies able to withstand a collapse in crude – much better than comparable oil boomtowns like Bismarck, North Dakota.
California can be a great place to secure your long-term investment dollars. That’s why 12% of all real estate foreign investment is done in the Golden State. When you couple a growing population with land scarcity and some great weather, you’ve got a recipe for success.
Plus you get to live next door to other friendly Californians.
If California is #2 on this list with 12% of all investment, do you think you can guess what percentage Florida accounts for? If you said 31% you’d be correct – and that’s not a typo. Florida is just shy of California, Texas, Illinois, Arizona and New York combined!
Florida and foreign investment are so synonymous that it’s been dubbed the land of sand, snowbirds, and speculation. The price of properties varies widely across the state – giving investors the opportunity to choose from an assortment of properties. Whether the goal is to flip quickly, invest long term, or just grab a condo with a beachfront view, Florida has something for everyone.
Source for investment percentages: Credit Sesame