Foreign Buyers of Real Estate in the U.S.A.

In the previous posts we have explored whether it’s worthwhile to market real estate in a small country to foreign buyers. Now let’s talk about a big country in terms of marketing real estate to foreign buyers. The U.S.A. A huge topic and attraction to international real estate investors.

skyscraper-450793__340

Once on an American real estate forum I saw a question posted: “How can I get a list of international investors to offer them to purchase my property?”

Well, on one hand it shows that the poster thinks wisely as he wants to reach the worldwide buying market, but on the other hand it also shows that he is a complete novice and doesn’t have a clue. Where is his property? What kind? To what nationals offer it? Without knowing all that it’s not possible to answer his question…

Ok, first of all let’s see who the international buyers of real estate in the U.S.A. are.

According to the NAR (National Association of Realtors in the U.S.A.), the following regions of the world are responsible for buying residential properties in the U.S.A. (a general picture in round numbers):

– Asia/Oceania (China, Hong Kong and Taiwan incl.) – 35%
– Latin America/Caribbean (Mexico incl., although it’s technically North America) – 24%
– Europe – 16%
– North America (Canada, both English and French parts) – 12%
– Africa – 4%
– Other countries – 9%

The buyers from five countries continue to account for almost half of the reported purchases: China (14 percent), Canada (12 percent), Mexico (10 percent), India (5 percent), and the United Kingdom (5 percent).

Then the buyers from Brazil, Venezuela, Germany, Vietnam, Japan, etc. follow.

Thus, we may see that the international buyers of American residential properties speak a variety of languages (and usually search for properties to purchase in their own language).

Now, let’s look at the most popular regions of the U.S.A. where the international buyers prefer to purchase properties, according to the same source (NAR):

“The major destinations of foreign buyers are Florida (22 percent), Texas (12 percent), California (12 percent), New Jersey (4 percent) and Arizona (4 percent). Together, these top five states account for more than half of all foreign buyers. Other preferred destinations are Illinois, North Carolina, Georgia, and New York.”

Again, it’s a general picture as each group of the foreign buyers (nationals of particular countries speaking their own language) may prefer their own destination in the U.S.A.

For example, we see that the Chinese are the largest group of international residential buyers and Florida is the major destination in the U.S.A., right? Does it mean that a home or condo in Florida should be marketed to the Chinese buyers first of all? Not at all, as in reality the Chinese buyers’ preferred destination is California. Another example: the Russian buyers are not in the top ten national groups of buyers in the U.S.A. by general numbers, but if we go to Florida, the Russian buyers are one of the most significant group, etc.

More later.

Happy blog reading,
Olga Kellen,
The Amazon Author
International Marketing Consultant and English-Russian Translator

Copyright © 2018 by Olga Kellen
All Rights Reserved

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s