Chinese nationals have taken the lead in foreign acquisitions of US homes over the past year, with their expenditures increasing by 83 percent compared to 2024, as reported by the National Association of Realtors (NAR).
The most recent NAR report on international dealings in the US residential real estate market indicates that Chinese purchasers represented $13.7 billion of the total $56 billion spent by foreign investors in the housing sector from April 2024 to March 2025.
This figure is more than double the $7.5 billion they invested the previous year and slightly exceeds the $13.6 billion spent in 2024.
Out of the 78,100 existing homes acquired by foreign buyers, 11,700 were purchased by Chinese buyers, constituting 15 percent of all foreign buyers, followed by Canada at 14 percent, Mexico at 8 percent, India at 6 percent, and the United Kingdom at 4 percent.
Among the leading five groups of foreign buyers, Chinese buyers paid the highest average purchase price, which was $1,168,800, with a median price of $759,600, according to NAR.
Is the crisis in China’s real estate sector a contributing factor?
Matt Christopherson, the director of Business and Consumer Research at NAR, suggests that this increase can be partially attributed to the ongoing crisis in China’s real estate market.
Once, China’s property sector represented 25 percent of the country’s GDP and 38 percent of the revenue for the Beijing government, driving decades of economic expansion.
However, rampant borrowing and speculation resulted in a market collapse, highlighted by Evergrande’s debt default in 2021 and subsequent defaults by other developers such as Country Garden, which have further destabilized the market.
Christopherson indicates that these domestic issues are prompting Chinese investors to explore alternative investment opportunities overseas.
“The recovery of the Chinese housing market has been sluggish since the pandemic, leading Chinese investors to recognize a favorable chance to diversify their investment portfolios by gaining exposure to more robust U.S. markets,” Christopherson stated, as reported by Newsweek.
“China’s ongoing investments in U.S. mortgage-backed securities further demonstrate their interest and confidence in American markets. Investment buyers from China are discovering lucrative cash flow opportunities in residential rentals, as our affordability challenges are exerting upward pressure on rental demand,” he remarked.
“Moreover, Chinese students increasingly purchase housing while studying, with nearly 20% of Chinese buyers acquiring properties for this purpose.”
The NAR report, which spans from April 2024 to March 2025, was published prior to President Donald Trump’s announcement of tariffs against China, which has intensified tensions in U.S.-China trade relations.
