Pre-Covid, Chinese buyers topped the list as the most profitable international source for foreign home purchases in the United States. In fact, Chinese real estate buyers spent $11.5 billion on New York City home purchases in 2019 alone. Post-Covid, those numbers are waning. In 2021, China dropped behind Canada and Mexico as the top international home purchasers. Interestingly, the decline has less to do with economics and more to do with America's current political climate.
When Real Estate Gets Political
In a viral blog post, Yi Luan, an NYU student from China, detailed her reasons for permanently returning to Beijing instead of purchasing real estate in New York City. Those reasons included President Trump's proposed ban on WeChat, some Americans' refusal to wear masks, and green card delays. Other Chinese buyers cited gun violence, attacks on Asian Americans, the unrest accompanying the Black Lives Matter movement, and the COVID-19 outbreak as additional reasons for deciding against a U.S. real estate purchase. These media coverage and politics around these events have created a negative perception of America in the mind of the Chinese buyers. This perception may take some time to overcome.
Adjusting To Change
Developers are adjusting to the decline by ramping up marketing efforts toward domestic purchasers. Those strategies have been paying off in New York City, and thankfully so. Though there is hope that Chinese buyers will return, some developers don't expect them to return in full force any time soon.
Get Quality Real Estate Advice
If you need sound real estate advice in New York or New Jersey from a law office with its finger firmly on the pulse of the market, Melvin Monachan, PLLC is for you. Call us now at (347) 389-1682 or go online to schedule an appointment so that we can help you make the best real estate decisions for you.