To fully answer this question requires a perspective of what California is about. Yes, I truly believe that California homes are, and will always be, in demand and there are several reasons why.
California’s economy is one of the largest and most diverse in the United States and the world. This state is known for its innovation, technology, entertainment industry, agriculture, and various other sectors. With its excellent climate year-round, tourism plays a significant role in the state’s economy. California’s diverse landscapes, including beaches, mountains, national parks, and urban attractions, draw millions of visitors each year.
The US National Association of REALTORS® (NAR) has conducted an annual survey of its members to measure the volume of U.S. residential real estate transactions (April 2022–March 2023 ) with international clients.
- Some 84,600 residential homes were purchased by foreign buyers comprising approximately 2% of total buyers
- Foreign buyers contributed $53.3 Billion in residential home purchases ((2.3% of $2.3 trillion of the dollar volume of existing-home sales)
- 51% of these foreign buyers reside in the United States (recent immigrants; less than two years at the time of the transaction) or non-immigrant visa holders (Type B)
- The top foreign buyers are China (13% of foreign buyers, $13.6 B); Mexico (11% of foreign buyers, $4.2 B); Canada (10% of foreign buyers, $6.6 B); India (7% of foreign buyers, $3.4 B); Colombia (3% of foreign buyers, $0.9 B)
- The top destinations were Florida (23%), California (12%), Texas (12%),
North Carolina (4%), and Arizona (4%). - 42% of the foreign buyers paid all-cash (compared to 26% among all existing-home buyers)
California is a global leader in technology and innovation, with Silicon Valley being a renowned hub for tech companies, startups, and venture capital investments. Major tech giants like Apple, Google, Facebook, and numerous startups are headquartered in California. The state’s culture of innovation and entrepreneurship has led to the growth of numerous startups across various industries, including tech, biotech, and more. California also hosts some of the most prestigious universities and research institutions in the world, contributing to the advancement of knowledge and innovation and attracting learners, experts, and professionals globally.
Hollywood, located in Los Angeles, is the center of the global entertainment industry, encompassing film, television, music, and other forms of media. The entertainment sector is a significant contributor to California’s economy. California is also a major agricultural producer, leading the nation in the production of various crops, including fruits, vegetables, nuts, and dairy products. There is a diverse and abundant number of farm-to-table restaurants and organic produce. The state’s geographic location on the Pacific coast makes it a critical gateway for international trade. Ports like the Port of Los Angeles and the Port of Long Beach are among the busiest in the world.
It is no wonder that California with its unique features, economy, and superb weather commands visitors and homebuyers from all over the globe.
Contact us to get the complete report “The 2023 Profile of International Transactions in U.S. Residential Real Estate.”