As U.S. eases travel restrictions, foreign investment in U.S. real estate is set for a comeback

The countrywide hot housing market exists despite a massive reduction in foreign investment over the course of the pandemic. Loosened travel restrictions may reignite foreign interest in U.S. real estate — pushing home prices even higher in certain markets in the process.

“There was a 31% decrease in the number of homes bought by foreign investors over the course of the COVID-19 pandemic.” The ‘psychological issue’ facing international investors Even before lockdowns and social distancing began in the U.S., real-estate agents were reporting a downturn in interest from foreign buyers. As international travel quickly became challenging amid the pandemic’s onset, buyers were less inclined to spend their money on American real estate.

But even with this week’s announced relaxing of travel restrictions, it could be some time before foreign investment truly recovers. Part of the problem lies in the vaccine requirements: If the U.S. requires international visitors to have been treated with FDA-approved vaccines, it could preclude a great deal of travel from countries that have invested in other vaccines such as China and Russia.

For the past 13 years, Florida has represented the top destination for foreign buyers, representing 21% of international purchases. In 2021, California came in second at 16%, followed by Texas and Arizona , with New Jersey and New York close behind at 4%.“The travel ban likely contributed to an easing of demand from foreign buyers of U.S. real estate, but that didn’t do much to slow the rapid rebound in the U.S. housing market in the second half of 2020 and so far in 2021,” Blomquist said.

Will the Evergrande crisis propel foreign investment in the U.S.? Another overseas issue, but one not related to foreign travel: Chinese property-giant Evergrande 3333, -0.44% has attracted a significant amount of attention over the past week after it hired financial advisers as analysts have raised concerns about a possible default.

Singapore Singapore Latest News, Singapore Singapore Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Easing restrictions will boost U.S. airlines but business travel still unclearU.S. airlines will benefit from the Biden administration's decision on Monday to reopen the country to fully-vaccinated air travelers from around the world, experts said, but the outlook for lucrative business travel was less certain. good luck
Source: Reuters - 🏆 2. / 97 Read more »

Why Trouble at a Chinese Real-Estate Company Led to a U.S. Stock Market PlungeWall Street seems to be wrapping its head around just how fast things are changing in Xi’s China. Evergrande’s woes are emblematic of those changes. KevinTDugan .KevinTDugan's report on why trouble at a Chinese real-estate company tanked the U.S. stock market was featured today in One Great Story, our reading recommendation newsletter. Sign up here to get it nightly:
Source: NYMag - 🏆 111. / 63 Read more »