During the COVID-19 pandemic, there was a silver lining for American homebuyers. The pandemic put a damper on the interest of foreign real estate investors in buying American homes. Before the pandemic, there was a surge in demand from foreign investors, especially from China. However, with travel restrictions and lockdowns in place, it became challenging for foreigners to make real estate transactions in the U.S. This situation allowed American buyers to have less competition and benefit from purchasing real estate. The demand for U.S. real estate from international investors is expected to increase further due to geopolitical unrest and economic factors. As a result, the combination of rising international demand and lower mortgage rates is likely to drive U.S. real estate prices up in the coming years. Foreign buyers, particularly from countries like Canada, China, Mexico, India, and the United Kingdom, are showing a growing interest in U.S. real estate. The potential loosening of capital controls in China could lead to a surge in Chinese investment in U.S. properties. Overall, the future outlook suggests a significant increase in foreign demand for U.S. real estate, especially in coastal cities. To prepare for this trend, investing in coastal city real estate and exploring real estate crowdfunding platforms like Fundrise and CrowdStreet could be strategic moves. It’s essential to diversify your real estate portfolio and conduct thorough due diligence before making investment decisions.
