The U.S. housing market is experiencing its widest seller-buyer gap in over a decade, with 508,715 more home sellers than buyers, according to Redfin. While domestic demand cools due to high mortgage rates and post-pandemic shifts, Chinese nationals have emerged as the top foreign investors, purchasing $13.7 billion worth of existing homes—an 83% increase from the previous year.
Lance Lambert, Co-Founder and Editor-in-Chief of Residential Club, explained: “During the Pandemic Housing Boom, housing demand surged due to record-low interest rates, government stimulus, and the rise of remote work—fueling what I call ‘WFH arbitrage.’” “When mortgage rates shot up in 2022, affordability finally caught up with the inflated prices of the pandemic era. The return-to-office trend also cooled demand, and the housing boom began to fade.”
Despite this slowdown, Chinese buyers are paying more than any other international group, with an average purchase price of $1.2 million. Roughly 36% of these purchases were in California, and 9% in New York, targeting high-value markets.
Joel Berner, Senior Economist at Realtor.com, noted: “Anyone paying in cash—whether domestic or international—is at a clear advantage right now. They can bypass the punishing mortgage rates that are deterring traditional buyers.”
The average rate on a 30-year fixed mortgage now stands at 6.67%, more than double the 3% rate seen in late 2021. Meanwhile, the median price for a single-family home hit $412,000 in 2024, nearly 60% higher than in 2019, according to the Joint Center for Housing Studies.
However, rising foreign investment has sparked national security concerns. The Trump administration is reportedly planning to ban Chinese groups from buying farmland, especially near military bases, citing strategic risks.
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