By Donald Klip
Investing in U.S. real estate remains compelling for international buyers, even as information gaps persist across markets. This editorial examines why global interest endures, the structural forces underpinning long-term demand, and how selective industrial and technology trends reinforce—rather than define—the market’s appeal.
International investors have long regarded U.S. real estate as one of the world’s most stable and transparent asset classes. Yet for non-U.S. residents, accessing clear, reliable information remains surprisingly challenging. Financing rules, tax considerations, and state-level regulations are often fragmented, inconsistent, and written primarily for domestic homeowners rather than global investors.
As Donald Klip, Founder of America Mortgages, notes: “Investors assume the U.S. market is simple because it’s large and well-documented. But for foreigners, the information is scattered and contradictory. The challenge isn’t interest—it’s clarity.”
Despite these obstacles, international investment remains strong with foreigners purchasing 44% more homes for year-ending March 2025. Much of this resilience stems from fundamentals that have persisted across decades, cycles, and political shifts.
Table 1: Long-Term U.S. Residential Market Performance (Illustrative)
| Metric (20-Year Avg.) | United States | Western Europe Avg. |
| Annual Home Price Growth | 4.8% | 2.1% |
| Gross Rental Yields | 5–8% | 2–4% |
| Population Growth | 0.8% | 0.1% |
Why the U.S. Remains Globally Attractive
The foundation of foreign demand lies in the sheer depth and diversity of the U.S. housing ecosystem. Unlike countries where real estate activity is concentrated in a handful of cities, the U.S. supports a vast network of thriving regional markets. Household formation continues to grow, supported by demographic expansion and immigration. This consistent increase in renters and buyers provides a reliable base for long-term investment and stabilizes demand even during economic downturns.
Equally important is the breadth of rental markets. Investors can choose between high-growth Sunbelt metros, university-anchored towns, family-oriented suburban communities, and mature coastal cities. Each offers distinct yield profiles, risk dynamics, and demographic drivers.
A uniquely powerful feature of the U.S. system is access to long-term, fixed-rate financing. The 30-year fixed mortgage—virtually unavailable in most advanced economies—allows investors to lock in predictable repayment costs, insulating them from interest-rate volatility. Klip emphasizes, “Predictability is incredibly valuable. Being able to fix financing for three decades gives foreign buyers confidence they simply can’t get elsewhere.”
Education is another significant motivator. With many of the world’s top universities based in the United States, overseas buyers often acquire homes near campuses years before their children enroll. Klip notes, “Education is one of the most overlooked motivators for real estate investment. A property near a university is both a practical asset and a long-term store of value.”
Table 2: Estimated Job Creation from Industrial & Technology Investment
| Sector / Initiative | Estimated Job Creation |
| CHIPS Act Semiconductor Fabs | 200,000+ |
| EV & Battery Manufacturing | 100,000+ |
| AI Data Centers & Digital Infrastructure | 150,000–200,000 |
One of the most striking trends in recent years is the rise in rental yields within high-growth technology corridors. Markets experiencing large inflows of semiconductor workers, EV-factory employees, and AI‑infrastructure teams—such as parts of Phoenix, Columbus, Austin, Huntsville, and Atlanta—are now reporting gross yields in the low to mid‑teens for certain asset classes, particularly single-family rentals and newer build‑to‑rent communities. Unlike traditional gateway cities, where yields often compress due to high entry prices, these emerging metros offer a combination of strong job creation, population inflows, and constrained housing supply. As Klip observes, “When thousands of high‑skilled jobs migrate into a city faster than homes can be built, rents adjust almost immediately. That’s why you’re seeing yields in the teens—and in many cases, they’re expected to climb even higher.” These dynamics suggest that technology-driven growth is not only reshaping local economies but also creating a new class of high-yield U.S. rental markets that foreign investors are increasingly drawn to.
Technology and Reshoring: A Secondary Accelerator
While the enduring strengths of the U.S. market remain the principal draw, a new wave of industrial investment is amplifying demand in targeted regions. Semiconductor fabs supported by the CHIPS Act, electric‑vehicle and battery plants across the Midwest and Southeast, and large-scale AI‑driven data center expansions are transforming local economies.
Still, these developments should be viewed as contributors, not catalysts. The core attraction of U.S. real estate existed long before the current wave of investment—and will continue long after it.
The Information Gap for Foreign Buyers
Despite the strength of the market, the information landscape remains fragmented. Regulations differ not just by state but by county and municipality. Insurance, taxes, zoning, and rental rules vary widely. Most U.S. mortgage resources are designed for domestic buyers, leaving foreign investors with little authoritative guidance.
“The U.S. market doesn’t require perfect information—just reliable information,” Klip concludes. “Once foreign investors understand the fundamentals, the opportunities become clear very quickly.”
Donald Klip
