One of the unfortunate consequences of the COVID19 pandemic has been significant restrictions on foreign travelers entering the United States , which has caused the number of foreign real estate investors to decline . However , this trend is slowly changing as the U . S . government lifts travel restrictions .
According to
CNBC , the main sources of foreign real estate transactions within the United States are Europe , Brazil , India , and China . Because the U . S . government relaxed travel restrictions for vaccinated travelers from 33 countries , people can now enter the country to buy real estate for the first time in almost two years .
Wealthy people overseas have booked numerous appointments with American Realtors ®, especially in cities such as Los Angeles , New York , and Miami , according to CNBC .
In 2018 , foreign nationals purchased $ 267 billion in U . S . real estate ; in 2019 , they spent $ 183 billion , according to the National Association of Realtors . Stymied by the unavailability of inperson showings , foreigners bought only $ 107 billion of U . S . real estate in 2021 .
Photo by Mikael Blomkvist from Pexels \
During the pandemic , American housing prices have skyrocketed while the supply has dwindled — especially in common investment hubs such as Miami and Palm Beach , according to CNBC . Areas such as the Manhattan borough of New York City saw a decline in prices and an increase in supply , but this is changing as the pandemic seems to be drawing to a close .
However , this may not pose a major problem to foreign investors . According to brokers interviewed by CNBC , buyers from countries such as China tend to prefer new construction . On the other hand , the United States real estate market might not see as much money from the hands of Chinese nationals . The government of China has created major blockages in its efforts to stop the flight of capital from its country .
The good news is that plenty of other countries and regions of the world do not
have such restrictions , which will likely aid the U . S . real estate market as people continue to recover from the pandemic . Buyers from the Middle East , Canada , and Mexico are showing increased interest in investing in properties in the United States .
The most recent data available , from before the pandemic , shows that foreign real estate investors tend to prefer the following areas :
1 . Florida 2 . California 3 . Texas 4 . Arizona 5 . New Jersey 6 . New York
This trend is expected to continue , especially in coastal cities , according to CNBC .
Image by Jan Vašek from Pixabay
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