Coldwell Banker Uncovers Why International Buyers Dream of Owning U.S. Real Estate

From diverse American cities and regions to being inspired by Hollywood, wealthy international consumers are dreaming of home in the United States. According to a recent survey by Coldwell Banker Real Estate LLC and the Coldwell Banker Global Luxury® program, affluent international buyers are dreaming big, spurred by location/lifestyle preferences, an overall positive outlook on the U.S. luxury real estate market and more.

In fact, a significant number of respondents say they are optimistic about the state of the U.S. real estate market; 80% of luxury consumers believe purchasing real estate in the United States is a safe investment and 76% rate the current market conditions to purchase a home as "excellent and/or good."

The survey conducted in partnership with Censuswide highlights the consumer sentiments of over 1,200 high-net-worth consumers from 12 countries. The findings serve to unpack the dreams, desires and attitudes of international luxury home buyers, offering insight into what's driving their interest in U.S. real estate, where they're dreaming of moving to and the factors impacting those relocation purchases.

International investors are willing to bet on U.S. real estate

Traditionally seen as a hedge against inflation, real estate may provide financial, emotional and psychological stability, especially in the face of uncertain market conditions. International wealthy consumers seek to diversify their real estate portfolios, build generational wealth and make opportunistic buys in luxury markets. In fact, 84% say they already own residential real estate outside of their home country.

The survey also reveals that virtually all (97%) respondents from Mexico consider purchasing real estate in the United States as a safe investment, ranking them the most likely country surveyed to do so. Participants from Spain and the United Arab Emirates did not fall far behind with 92% saying that U.S. real estate is a safe investment.

Desires, dreams and motivations for purchasing in the U.S.

Consumer motives and preferences are not universal when it comes to international buyers looking for their dream home in the U.S. The survey indicates that some of the leading motivations to purchase property in America are as follows:

1. Frequent work/business trips to United States cities
2. Three-way tie:
   • A movie or television series based in the United States
   • A recent vacation to a United States city
   • Investment opportunity
3. Social media
4. Dual citizenship / golden passport

The below amenities are rated as the top five most important for international respondents based on their desires when selecting a dream home purchase abroad:

1. Latest smart home technology
2. Eco-friendly and sustainable design features
3. State-of-the-art security system
4. Home with breathtaking views
5. Privacy

International consumers are dreaming of new destinations

It's evident that the United States has captured the hearts of international home buyers for various reasons with the nation's cities offering diversity in experience and atmosphere from coast to coast. Respondents identified the following as their top choices for their dream location of their next home purchase:

• Cultural diversity and prominent architecture like Chicago
  • Ranked highest by Argentina with over a quarter (27%) of respondents, followed by Costa Rica (20%)
• In the hustle and bustle of a major city like New York
  • Ranked highest by Spain with nearly a quarter (24%) of respondents, followed by Mexico (20%)
• Warm weather with sprawling homes among the glamorous elite like Los Angeles
  • Ranked highest by Portugal with 21% of respondents, followed by Turkey (16%)
• A waterfront property with breathtaking views like Miami
  • Ranked highest by Costa Rica with just under one-fifth (19%) of respondents
• A luxurious resort town in the mountains like Aspen
  • Ranked highest by France, with one-fifth (22%) of respondents

"The appetite for owning U.S. real estate from overseas buyers has never been stronger, according to our survey. From investment opportunities to even being inspired by the entertainment industry and social media, buyers are confident in putting their money towards their dream of making the United States their home away from home. From coast to coast, there are plenty of reasons why wealthy buyers aspire to American living," said Michael Altneu, Vice President, Coldwell Banker Global Luxury® program.

Luxury property specialists are seen as a trusted resource to a community and all that it offers. The survey results reveal that 88% of respondents are highly likely to lean on the support of an agent when navigating the process of purchasing a home abroad. In addition, younger millionaires aged 25-34 are the most likely age group to use an agent for an international home purchase (97%).

As the connection point to their communities, the white glove service and world-class expertise of a top agent provides immeasurable value. Beyond sharing market knowledge, agents serve as resource to sharing insights on other factors luxury buyers consider when purchasing a property, like connections to desired schools, introductions to social groups and much more.