Chinese increasingly help carry U.S. real estate market, but have little impact in NYC

New York /
Jul.July 30, 2012 01:30 PM

Foreign investors of all stripes have been a major force in the U.S. housing market over the last year, but Chinese buyers, taking advantage of recession-priced real estate, better job opportunities and looking to get their children into prestigious American schools, are now the fastest growing demographic of foreign buyers. According to Businessweek, Chinese buyers, who often have no credit or access to financing, are paying all cash for homes that on average cost $400,000 — nearly twice the average cost of a U.S. home. Of the $82.5 billion invested into U.S. housing by non-U.S. buyers in the year period ending on March 2012, the Chinese accounted for 11 percent, most of which was concentrated in New York, Florida, Texas, Arizona, and California.

But despite the positive impact Chinese buyers are having on the U.S. housing market, they have not had a significant impact on home values in cities like New York.

“In a market the size of New York, it would take a substantial influx of any one buyer group to significantly affect market prices,” Corcoran Group CEO Pamela Liebman said. “The number of Chinese purchasers of New York real estate has not reached the critical mass it would require to impact prices.” [Businessweek]Christopher Cameron


Related Articles

arrow_forward_ios
Pam Liebman (Illustration by Paul Kisselev)
Pam Liebman’s lifeguarding days
Pam Liebman’s lifeguarding days
Resi rumble: Liebman, Lorber to face off at TRD’s showcase and forum
Resi rumble: Liebman, Lorber to face off at TRD’s showcase and forum
Resi rumble: Liebman, Lorber to face off at TRD’s showcase and forum
Photo illustration of Ribbon Home CEO Shaival Shah and Orchard Technologies CEO Court Cunningham carrying homes
Power buyers saddled with homes
Power buyers saddled with homes
National Association of Realtors Senior Economist Nadia Evangelou
The Fed’s latest hike could kickstart mortgage demand
The Fed’s latest hike could kickstart mortgage demand
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Mortgage applications surge 25% in the new year as interest rates drop
Mortgage applications surge 25% in the new year as interest rates drop
Home Sales, Housing Market, Redfin, Concessions
With buyers holding the cards, more sellers sweeten resi deals
With buyers holding the cards, more sellers sweeten resi deals
Benjamin Franklin overlaid on top of a house
C.R.E.A.M.: Cash rules everything around (the) market
C.R.E.A.M.: Cash rules everything around (the) market
(Photo Illustration by The Real Deal with Getty)
Deep freeze: Luxury home sales suffer biggest hit on record
Deep freeze: Luxury home sales suffer biggest hit on record
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...