NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles (E) are available only to NAR members and require the member's nar.realtor login.
Top U.S. Real Estate Markets for 2021
- Salt Lake City, Utah
- Boise City, Idaho
- Spokane-Spokane Valley, Wash.
- Indianapolis-Carmel-Anderson, Ind.
- Columbus, Ohio
- Providence-Warwick, R.I.-Mass.
- Greenville-Anderson-Mauldin, S.C.
- Seattle-Tacoma-Bellevue, Wash.
- Worcester, Mass.-Conn.
- Tampa-St. Petersburg-Clearwater, Fla.
Source: Top Housing Markets for 2022 (realtor.com®, Dec. 7, 2021)
Foreign Investment Trends in the U.S.
Biden’s Build Back Better Bill Targets Foreign Real-Estate Investors’ Tax Moves (The Wall Street Journal, Dec. 21, 2021)
“The U.S. government charges investors from certain countries a tax of up to 30% on profits made from U.S. commercial real estate. But many overseas buyers have been able to avoid paying this tax, which isn’t assessed on U.S. companies, through a complex maneuver involving loans from offshore entities. Now, a provision in the Build Back Better bill would likely end the practice. The bill passed the House of Representatives last month and is now being discussed in the Senate, where it faces an uncertain fate among divided Democrats.”
Real Estate Brokers Brace for ‘Flood ‘ of Wealthy Buyers from Overseas as Travel Restrictions Lift (CNBC, Nov. 5, 2021)
Before the COVID-19 Pandemic struck, foreign buyers spent over $267 billions dollars investing in U.S. real estate. In 2021, that number fell to $107 billion. However, the United States is expecting a flood of buyers as borders opened to 33 countries in November of 2021. These buyers are most often looking for new construction in coastal areas like New York City, California, or Florida, though Texas and Arizona ranked high on their lists.
Global Real Estate Summit Presented Economic Forecasts and Emerging Friends (RISMedia, Oct. 7, 2021)
“While global real estate acquisition is more accessible than ever—thanks in large part to the mobile and digital age, and pandemic-imposed reliance on technology—Brown Harris Stevens Associate Broker Susan Merdinger Greenfield said it takes more than just sales and global reach to be successful. “My international relationships around the world have brought me my business and made me a success because I keep working my network. Relationships bring a buyer.”
Foreign Capital’s Ongoing Push Into US Secondary Markets (Commercial Observer, Oct. 5, 2021)
Many foreign investors have followed the trend of their United States counterparts and begun investing heavily in “secondary” cities such as Nashville, Denver, and Raleigh. In the second quarter of 2021, foreign investment was up a 48%, but breaking down this number provides some shocking results – Manhattan foreign investment dropped a shocking 86% while secondary markets like Phoenix, Orlando, and Atlanta saw a great deal of activity.
Profile of International Transactions in U.S. Residential Real Estate (National Association of REALTORS®, 2021)
The 2021 Profile of International Transactions in U.S. Residential Real Estate highlights trends in REALTOR® transactions with international clients. In 2021, the top 5 foreign buyers were from Canada, Mexico, China, India, and the United Kingdom. From April 2020 to March 2021, foreign residential purchases reached $54.4 billion U.S. dollars, accounting for 2.8% of existing home sales.
Investing in Foreign Markets
Billionaire Cousins Show Confidence in Singapore Property Market with Top Housing Site Bids of $1 Billion (Forbes, Jan. 19, 2022)
Two cousins who submitted a bid totaling $1billion dollars on a hotly contested Singapore property have given the market hope during a stagnant period. The Singaporean government imposed “property cooling measures” as housing prices soared to record heights, with new home purchases decreasing to 58%. This bid by the prominent real estate pair is seen as an extremely positive sign, as both cousins are from prominent real estate families.
A Guide to Investing in Emerging Asian Markets Outside of China (EFT Trends, Jan. 19, 2022)
“The Asian Growth Cubs ETF (CUBS) is the only way for foreign investors to gain access to investment in these countries. CUBS invests in companies such as Renata Unlimited, a Bangladesh pharma company that is actually a legacy of Pfizer; Systems, a leading software company in Pakistan that has 80% revenue generation in USD, protecting it from local volatility; and Converge, a cable and fiberoptics company in the Philippines that was previously owned by private U.S. equity.”
Buying International Property: How to Finance Foreign Real Estate Investment (Rocket Mortgage, Dec. 23, 2021)
“Along with diversification, one of the biggest draws to foreign investments is the potential for higher returns. In particular, emerging markets allow investors to benefit from higher rental yields and lower costs of living. And if your home country’s market is currently stagnant or unstable, you can still participate in an economy experiencing growth. However, like any investment, it also comes with some inherent risks. “
6 Most Affordable Places to Buy Property Overseas in 2022 (Forbes, Dec. 15, 2021)
According to Forbes, these six overseas markets promise the best value for your money in 2022: Granada, Nicaragua; Santa Cruz, Bolivia; Santa Marta, Colombia; Arequipa, Peru; Cuenca, Ecuador; and Fortaleza, Brazil. While these cities vary in size and ambiance, most investors can find a home for under 100,000 U.S. dollars. These locations offer low prices, a variety of city size, and are a sure-fire way to diversify your investments from a geo-political vantage.
Invest in Foreign Real Estate with International REITs (The Balance, Nov. 11, 2021)
Real Estate Interantional Trusts, more often known as REITs, are often used in international transactions. While all REITs allow investors to greatly diversify their stock portfolios, international REITs allow investors the advantage of higher dividend yields due to international tax laws, as well as an often favorable dollar exchange rate.
Association of Foreign Investors in Real Estate (AFIRE) (link is external)
Provides information and research on foreign investment trends in real estate.
U.S. Bureau of Economic Analysis (link is external)
Advocates and promotes international real estate investments. Provides an forum for investors to meet and exchange information through regularly scheduled meetings in the United States and Europe.
eBooks & Other Resources
The following Books and digital audiobooks are available to NAR members:
Global Real Estate Investment Trusts (eBook)
Passport to Exotic Real Estate (eBook)
How to Invest In Offshore Real Estate and Pay Little or No Taxes (eBook)
International Real Estate Handbook (eBook)
No Going Back - Buying Abroad (eBook)
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