Connect with us

News

Chinese Middle Class Now Buying More US Residential Real Estate

Nobelle Borines

Posted

(

)

A A A

Chinese consumers are following an interesting international trend. Although they are no longer interested in buying American gadgets like the iPhone, the Chinese middle class are investing in US residential real estate.

According to the National Association of Realtors, the Chinese have been the top foreign buyers in both units and dollar volume of residential housing for the past six years. Although they have started off with the pricey properties, Chinese consumers are now buying new, lower price tiers. Interestingly, the Chinese middle class has joined wealthier individuals in purchasing real estate in the United States.

The Chinese middle class are mostly interested in more affordable homes with mortgages.

So why is there a sudden interest in US residential real estate? San Francisco real estate agent Michi Olson says that the Chinese believe it is a sound investment.

“The Chinese people still see the United States as a safe harbor where they can take their assets and park their money not only for their money but also for the future of their children,” Olson said.

RE/MAX DFW Associates agent Laura Barnett also revealed why it is much easier for the Chinese middle class to buy real estate these days.

“It is difficult to get loan approval on foreign buyers unless they put 50 percent or more down on a home, but several lenders specialize in this market now, so it is getting easier,” Barnett said.

Chinese workers with tech jobs are buying more properties in the US.

California is still one of the favorite locations to find real estate for the Chinese. However, as more lenders are now more lenient in other states, they have also started searching in Texas, Florida, and Georgia.

The openings for technology jobs is another factor in the sudden interest in lower-priced homes in the US. As Chinese workers move to the United States, they also keep an eye out for property they can invest in.

It’s certainly an interesting trend that could potentially continue for the next few years.

View Comments

Follow On Facebook




Popular