According to the National Association of Realtors, Chinese buyers have become the largest international buyers of real estate in the United States. While Chinese buyers are purchasing real estate all over the country, some states are seeing far more action that others.
The National Association of Realtors reports that more than half of the $22 billion that Chinese buyers spent on U.S. real estate from March 2013 to March 2014 was spent on real estate in California, Washington and New York. In fact, 35 percent of purchase were made in California, while 9 percent were made in Washington and 7 percent were made in New York. Pennsylvania and Texas have also seen a lot of interest from Chinese buyers, with each state accounting for 6 percent of real estate purchases.
More than half of the $22 billion Chinese buyers spent on U.S. homes during the 12 months ended in March was spent in California, Washington and New York, according to the National Association of Realtors. Specific cities within these states are particularly hot among Chinese buyers, with Los Angeles, San Diego and San Francisco receiving the most attention in California. New York City and Seattle are also top cities among Chinese real estate buyers and investors. According to Juwai.com, which is a website based in Hong Kong that helps to connect Chinese buyers with properties in the United States, California is particularly attractive to Chinese buyers because of its proximity to the homeland, its large Chinese-America population and its climate.
The large number of Chinese buyers within certain markets has pushed home prices higher. As a result, less wealthy Chinese buyers have started to purchase property in nearby cities as well. Those who are interested in purchasing property in San Francisco, for example, are choosing to purchase property in nearby Oakland and other less expensive areas instead.
In some of the popular areas, Chinese buyers are purchasing property for personal use. In Washington State, for example, many parents are purchasing property so their children can attend school there. The tech jobs in California and Seattle are another draw for Chinese buyers who want to be close to the industry. In other markets, such as New York City, Chinese buyers are mostly purchasing property as an investment and have no plans to live on the property.
Miami, Florida is also popular among Chinese investors, who are largely interested in purchasing high-end waterfront buildings that they can rent out. In Texas, the cities of Austin Houston and Plano are particularly popular among Chinese buyers. Even Michigan is growing in popularity among Chinese investors, with the greatest amount of interest being in real estate in manufacturing cities such as Detroit, Flint and Saginaw. Many investors are purchasing the properties at very low prices, renovating them and then renting them out.