Business Growth

Despite a recent slowdown, the U.S. housing market is becoming a popular investment location for foreign investors. Attracted by a desirable return on investment, many foreign nations continue to invest heavily in the U.S. residential and commercial real estate markets. In fact, achieved in 2005, foreign investment in U.S. real estate crisis first 83 trillion. To assess the impact of foreign investment in the U.S. housing market, produced the National Association of Realtors (NAR), a 2006 report entitled “Foreign Investment in U.S. Real Estate: Current trends and historical perspective.” The report gives insights into the development the foreign real estate funds, their impact on the U.S. economy and the big countries, to participate in U.S. real estate funds. Below are some highlights from the NAR report. According to data from the U.S. Department of Commerce, the seven countries with significant holdings in U.S. real estate crisis had from 2005: Germany – 13% Latin America – 13% Australia – 11% Japan -10% United Kingdom – 10% Canada – 6% Netherlands – 6% The U.S. economy is far more open to foreign investors. Both investors and the Americans benefit significantly from all these foreign investments. The NAR study estimates that higher without foreign investment in the securities market, the long-term lending rates four percentage points than the current interest rate that would have an adverse effect would the U.S. housing market. Foreign direct investment in the U.S. not only creates more jobs, but also contributes to the demand for U.S. real estate market. In fact, foreign investment is responsible for the creation of two million U.S. jobs by the end of 2006, which further strengthens the demand for U.S. real estate market. Permanent and temporary migration of workers in foreign born in the U.S. further strengthens the demand for property. According to the Joint Center for Housing Studies at Harvard University, 1 Net 2 million immigrants will arrive each year in the United States. This pattern of immigration is expected to offset the decline in housing demand through the post baby-boomer generation. In conclusion, the impact of foreign investment and immigration to the United States will continue to play an important role in the U.S. housing market.