FOREIGN HOMEBUYERS BOOST IN TEXAS, TAR REPORTS

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Declining foreign homebuyers in the U.S. became a concern this year, given the strengthening U.S. dollar, presidential election, Brexit and Department of Treasury’s luxury cash-buyer rules. However, a report from the Texas Association of Realtors (TAR) shows international activity increasing across the nation and in the Lone Star State specifically.

In Texas, foreign homebuyers boosted 2 percent year-over-year, comprising 10 percent of international investments in the U.S. between April 2015 and March 2016. Texas posted 21,488 home sales and $10.2 billion in sales volume from buyers across the globe, the report says.

Out of all home sales in the U.S. between April 2015 and March 2016, approximately 214,885 were purchased by buyers from other countries, according to the report. While international activity is up 3 percent year-over-year in the same time frame, the dollar volume spent dropped 1.25 percent to reach $102.6 billion.

Texas foreign homebuyers

Buyers from Latin America, including Mexico, accounted for the majority of foreign homebuyers in Texas, at 36 percent. Asia and Oceania comprised 34 percent of Texas’ international homebuyer share.

Europeans (12 percent), Africans (8 percent) and Canadians (4 percent) represented more marginal sales in the Lone Star state.

One in three Mexican homebuyers and one in five Indian homebuyers chose Texas, according to the report.

Texas was no. 3 in the nation for foreign homebuyer activity next to Florida (22 percent of all sales) and California (15 percent of all sales). Arizona and New York tied for fourth, with 4 percent of international home purchases each. Together, these five states accounted for 51 percent of foreign homebuyers.

How many Texans were born outside the country?

With 9.4 percent of immigrants opting for Texas in 2014 alone, the southern state has the second largest foreign-born population in the country, the report says. Texas also holds the seventh largest percentage of immigrants compared to total state population. Seventeen percent of Texans were born outside of the U.S. compared to 13 percent nationally.

With 33,856 immigrants, Houston is the fifth largest city in foreign-born population. Dallas is no. 8, with 28,780 immigrants. Austin fell year-over-year to reach no. 26, with 6,134 foreign-born residents. San Antonio ranks in the top 30, with 5,404 immigrants total.

Realizing market potential, foreign-born sellers also picked up the pace from April 2015 to March 2016, TAR says. Texas held 8 percent of all foreign sellers in the country during the same time period.

Meanwhile, Florida held 27 percent of international sellers. California posted 14 percent of the country’s international home sales while Arizona and Nevada held 10 percent and 4 percent, respectively.

Canadians made up the largest share of foreign sellers, at 23 percent nationwide. Chinese sellers accounted for 15 percent, ahead of U.K. and Mexican sellers, at 6 percent each.


Jennifer Riner is an Inman.com staff writer. 

This article originally appeared on Inman.com.

 

Published date on HAR.com: Jul. 25, 2018

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