Over the last 5 years, the Chinese have invested over $150 billion into the US housing market – $28.6 billion in 2015 alone. Currently one of the largest foreign homebuyers, the immense interest from Chinese buyers has greatly helped the recovery of the US housing market.
While they have been purchasing both commercial and residential properties, the majority of purchasing power is going toward residential homes. That’s $23 billion going toward commercial real estate and $127 billion into U.S. residential real estate.
A 2015 NAR study found that Chinese buyers made up 16 percent of international buyers purchasing single-family homes in the U.S., a 12 percent increase since 2013.
In 2015, 35 percent of these home purchases were made in California, with New York hot on its tail. Other hot spots include LA, San Francisco, Seattle, Chicago, Miami and Las Vegas. High end locations means high end home and another 2015 study showed that Chinese buyers paid an average of $832,000 per home – double that of other foreign purchases.
Three key drivers for these buyers are fee-simple ownership; the rule of law; and a stable government reported the Founder of the Asian Real Estate Association of America. Many buyers are relocating on investor visas, some are renting or buying second homes and some are worried over the devaluation of the Yuan, causing a desire to transfer their assets into the U.S. dollar.
And new real estate owners don’t stop spending once the sale is finalized. From new appliances, to new cars to eating out these buyers are infusing money into the local economies.