China’s recent warning to students about studying in the U.S. poses a potential threat to housing markets surrounding universities and colleges.
The Chinese government has cautioned students considering studying in the U.S. of “prolonged review times” and a “rising rate of visa rejections,” which could deter students and their families, who historically spend billions on homes near their schools, from studying in America, Jing Daily reported.
In 2018 alone, Chinese buyers spent $30.4 billion on residential properties, topping the list of foreign homebuyers for the sixth year in a row, according to a survey conducted by the National Association of Realtors. The average purchase price was $752,600. In the same year, the U.S. hosted some 363,000 Chinese students, according to data from the Institute of International Education.
The NAR study also found that among the top five foreign buyers, including Canada, India, Mexico and the U.K., “Chinese buyers were most likely to purchase the property for the use of a student.”
The Chinese government’s warning to students comes as Chinese outbound tourism to the U.S. is on the decline for the first time since 2003, and political tension is growing between the two major economies. In the commercial sector, Chinese buyers have been retreating in recent years largely due to the country’s tightening capital controls and slowing economy. [Jing Daily] – Sylvia Varnham O’Regan