title
January 2019   Volume 45, Number 1      
 

1

Foreign Real Estate Investors Increasingly Find Value Outside U.S. Metro Areas

As real estate prices reach record highs in the largest U.S. metro areas, foreign investors are putting money into the next-best markets. The shift comes as population growth continues well above the nationwide average in second-tier cities, such as Denver, Colo. and Salt Lake City, Utah, according to a survey conducted by PwC and the Urban Land Institute.

Toronto-based Starlight Investments, a firm that has topped the list of foreign buyers for the past decade, is among companies from China, Canada and Germany that are investing. For the first time in 2018, Starlight Investments purchased apartment complexes in the suburbs of Phoenix, Ariz. and Atlanta, Ga.

“There were really only a handful of people when we first started looking at the suburbs, and that handful is now a larger number of people that are looking at those deals,” said Raj Mehta, global head of private capital and partnerships at Starlight. “We were increasingly seeing that jobs were moving from traditional Northeast and Northwest corridors into the sunbelt states.”

While the major metro areas still attract the bulk of foreign real estate investment, rents in these markets have reached record highs. As a result, foreign investors are focusing on markets where they see yields rising and larger potential returns. Dallas, Texas, California’s Inland Empire, and Philadelphia, Pa., are currently the most popular second-tier markets for investment among foreign buyers.

[return to top]

 

 

 

 

In this issue:

Buying a Home Before 35 Gives Homeowners a Boost During Retirement

Buyers Tap into Home Equity, Even As Mortgage Rates Rise

Existing Home Sales Rise for the First Time in 6 Months

Foreign Real Estate Investors Increasingly Find Value Outside U.S. Metro Areas

Home Flippers Leave the Market as Flipping Profits Shrink

Home Price Gains Decline Below 6 Percent for the First Time in a Year

Mortgage Applications Decline to 4-Year Low as Homebuyers Exit Market

U.S. Housing Starts Rise for Multi-family as Single-family Housing Declines

National Homeownership Rate Rises to 64.4 Percent

How to Stand Out as a Top Online Realtor

 


The information presented and conclusions within are based upon our best judgment and analysis. It is not guaranteed information and does not necessarily reflect all available data. Web addresses are current at time of publication but subject to change. Smarts Publishing does not engage in the solicitation, sale or management of securities or investments, nor does it make any recommendations on securities or investments. This material may not be quoted or reproduced in any form without publisher's permission. All rights reserved. ©2017 Smarts Publishing. Tel. 877-762-7877. smartspublishing.com