China Buying More US Real Estate
A new report reveals that Chinese nationals have resumed dominating foreign purchases of U.S. homes after a long lull. This is significant because, for years, Chinese buyers were the largest group of foreign buyers of U.S. homes, but their share plummeted during the pandemic due to strict lockdowns and travel restrictions. However, the latest data from the National Association of Realtors (NAR) suggests that Chinese homebuyers are making a comeback in the U.S.
According to NAR survey data published this week, Chinese buyers accounted for 13% of all foreign buyer purchases in the 12-month period between April 2022 and March 2023. In the previous two years, their share had plunged to 6% due to pandemic-related travel restrictions. During the most recent period, Chinese buyers spent $13.6 billion on existing homes, more than double the $6.1 billion they spent the prior year.
However, NAR chief economist Lawrence Yun cautioned that the doubling is coming off a very low number and is still well behind the pre-COVID condition. California was the top choice for Chinese buyers in the survey period ending in March, accounting for 33% of all homes purchased, followed by Florida at 16% and Texas at 8%. Experts attribute the popularity of Florida and Texas to their home affordability.
Most Chinese buyers are now purchasing U.S. homes for their own use rather than as offshore investors, according to Kashif Ansari, co-founder and group CEO of international property company Juwai IQI. Ansari predicts that the typical Chinese buyer in 2023 is on their way towards becoming an American resident and citizen.
However, states across the U.S. have enacted or weighed legislation to limit Chinese citizens from buying certain properties, citing national security. For instance, a law in Florida that bars most Chinese citizens from purchasing homes in the state took effect last month. The ACLU, along with other organizations, has filed a lawsuit challenging the law on behalf of four individuals and a Florida real estate brokerage firm seeking an injunction to block the law’s enforcement. Florida realtors previously told Axios that the law had significantly undermined Chinese buyers’ interest in the state, and it remains to be seen how other states will react to Chinese buyers’ resurgence in the U.S. housing market.
The typical Chinese buyer in 2023 is likely to be an American resident and citizen, rather than an offshore investor. However, legislation across the United States has been introduced to limit Chinese citizens from buying certain properties, citing national security concerns. In Florida, a law that restricts most Chinese citizens from purchasing homes in the state has recently come into effect, causing a stir among civil liberties groups. The ACLU and other organizations have filed a lawsuit on behalf of four individuals and a Florida real estate brokerage firm, seeking an injunction to block the law’s enforcement. Realtors in Florida have also noted that the law has already reduced Chinese buyers’ interest in the state.
Summary:
– Chinese buyers have resumed dominating foreign purchases of U.S. homes after a long lull.
– Chinese nationals were the largest group of foreign buyers of U.S. homes for years.
– However, their share plunged during the pandemic due to strict lockdowns and travel restrictions.
– The latest data from the National Association of Realtors (NAR) suggests that Chinese homebuyers are making a comeback in the U.S.
– In the 12-month period between April 2022 and March 2023, Chinese buyers accounted for 13% of all foreign buyer purchases, according to NAR survey data published this week.
– The share of Chinese buyers had plunged to 6% in the previous two years, mostly due to pandemic-related travel restrictions.
– Chinese buyers spent $13.6 billion on existing homes during the most recent period, more than doubling the $6.1 billion they had spent the prior year.
– California was the top choice for Chinese buyers, accounting for 33% of all homes purchased, followed by Florida at 16% and Texas at 8%.
– Most Chinese buyers are now purchasing U.S. homes for their own use rather than as offshore investors
– States across the U.S. have enacted or weighed legislation to limit Chinese citizens from buying certain properties, citing national security.
– A law in Florida that bars most Chinese citizens from purchasing homes in the state took effect last month, and the ACLU has filed a lawsuit challenging the law on behalf of four individuals and a Florida real estate brokerage firm.
