California the top choice for Chinese homebuyers, who spent 83% more on US homes this year

They acquired $13.7 billion worth of homes in the US from April 2024 through March, representing an 83% jump from a year earlier, according to a report by the National Association of Realtors.

Also see: California asking prices dip as homes for sale jump 50%

The data shows that Chinese buyers are brushing aside concerns over US-China geopolitical tensions and tighter visa policies. Instead, they are actively seeking overseas assets as a hedge against China’s economic slowdown following years of regulatory crackdowns on the private sector.

Chinese buyers “were more likely to pay in all cash than any other buyer group,” said Juwai IQI co-founder and group chief executive officer Kashif Ansari. He added that the US is considered a safe place for property investment due to its relatively good yields and well regulated market.

Also see: Will lower mortgage rates save California’s housing market?

California remained the top choice for Chinese buyers, attracting 36% of purchases, followed by Maryland and New York, each accounting for 9%, according to the data. About 66% of buyers said the homes were intended for personal use, including as primary residences, student housing or vacation homes.

Chinese buyers bought 11,700 homes during the period, almost double the number from the previous year. They also continue to boast the highest average purchase price at $1.2 million among all foreign buyers, the report says. They accounted for 15% of all foreign home purchases.

Their spending still remained below the 2017 peak of $31.7 billion, the report shows.

Overall, foreign buyers purchased $56 billion worth of US existing homes during the same period, a 33% increase from a year earlier. They bought 78,100 properties, a 44% jump and the first year-over-year increase since 2017.