Foreign investors are increasingly attracted to the United States, benefiting from a mix of factors including transaction data, opportunities for property value appreciation, potential rental income, tax advantages, and access to specialized financial tools such as mortgages for non-U.S. citizens. With over $53.3 billion in residential purchases by foreign buyers from April 2022 to March 2023, and 42% of these transactions being all-cash purchases, these statistics underscore why the U.S. continues to stand out as a preferred destination for international real estate investment.
Transaction Statistics in 2023
The U.S. real estate market in 2023 saw robust activity across various segments, reflecting investor confidence and market resilience:
- Investment Volume: Commercial real estate investment volume reached approximately $627 billion in 2023, driven by strong demand for office and industrial properties (JLL).
- Residential Sales: Existing home sales totaled over 6.1 million units in 2023, with a median sales price of $398,600, showcasing sustained demand and price appreciation (National Association of Realtors).
- China (13% of foreign buyers, $13.6 B)
- Mexico (11% of foreign buyers, $4.2 B)
- Canada (10% of foreign buyers, $6.6 B)
- India (7% of foreign buyers, $3.4 B)
- Colombia (3% of foreign buyers, $0.9 B)
Top Destinations
- Florida (23%)
- California (12%)
- Texas (12%)
- North Carolina (4%)
- Arizona (4%)
Capital Appreciation and Cash Flow
Investors benefit from both capital appreciation potential and steady cash flow from rental income:
- Capital Appreciation: Property values in major U.S. cities continued to appreciate, with markets like New York City, San Francisco, and Miami showing significant year-over-year increases (CoreLogic).
- Rental Yields: Rental yields vary by location and property type but generally range from 5% to 18% annually in prime markets, offering stable income streams for investors (Global Property Guide).
- Depreciation Deductions: Investors can benefit from depreciation deductions on properties, reducing taxable income and improving cash flow.
- 1031 Exchange: Allows investors to defer capital gains taxes by reinvesting proceeds from the sale of one property into another similar property within a specific timeframe.
- Loan Programs: NextLevelFi is a leading global finance broker specializing in facilitating U.S. residential and commercial mortgages and provides access to 200 U.S. bank and lender programs directly to our international clients.
- Requirements: Typically, lenders require 20% down payment with no proof of income and assets, and no requirement for U.S. credit history required