Real estate market in the US, becomes attractive for Mexicans

Despite the current housing deficit in the neighboring northern country, the opportunities for Mexican nationals have been maximized, especially in states with a lower tax rate

(MEXICO – NAR), January 20, 2022.- The real estate market in the United States, especially in luxury segments and in some states, is experiencing significant dynamism despite the situation in that country, where prices, low interest rates and other conjunctural factors have boosted demand and lagged the supply.

According to an analysis by the mortgage giant Freddie Mac, from 2018 to date the housing deficit in the United States increased more than 50% to currently stand at 3.8 million units, while the sale price per unit throughout the United States increased about 15% in recent months to currently stand at around $ 340,000.

Participants from the United States real estate industry agreed that this situation could be perceived as worrying; However, it is a great opportunity for foreigners, mainly Mexicans, who seek to protect their positions in safe investments in the face of the economic situation.

“People are coming to the United States wanting to buy because there have been changes in the Latin American region. In Chile, Peru, Mexico there was a significant capital outflow and a percentage of these capitals will end up in the real estate market ”, detailed Fernando de Núñez y Lugones, executive vice president of the Development Division of ONE Sotheby’s International Realty agency.

In an interview, De Núñez highlighted that the market in Miami, Florida, has triggered the interest of Mexicans, especially in projects with a value starting at $ 1,500,000, since, during the last year, Mexicans went from tenth to fourth place in the ranking of international real estate buyers of that state with acquisitions that total more than 420 million dollars.

“The Mexican is present in all segments, but he is always buying well-located and high-quality products,” said the director of the URBIN luxury segment project sales agency.

De Núñez commented that, according to his experience, half of Mexicans who buy a home in the United States do so in order to have a permanent residence, while 25% do so to settle partially and the other 25 % for investment purposes.

Dynamism by states

According to an analysis by the National Association of Real Estate Brokers (NAR), Mexicans ranked fourth among foreigners who bought the most houses in the United States during 2020, in a year where foreigners disbursed more than 54,000 million dollars to buy real estate.

However, the dynamism of foreign capital in the real estate market in the United States is not the same by region, since states such as California, Arizona, Texas, Florida, New Jersey and New York are more attractive to foreigners due to both weather conditions as well as a lower tax rate.

“For example, there are additional factors in Texas, Arizona that not all of these states have, such as lower taxes, there is a lot of land, which is good and more and more housing is being developed,” said Erik Bladinieres, vice president of Development for the signed by Visa Solutions.

According to the director of this firm, which offers investment solutions for foreigners in the United States real estate market, a foreigner can have advantages when investing in residential projects in that country, mainly the returns that can be obtained when there is a demand potential to acquire a home.

“Traditionally, the average time when a house is sold in the US is 60 days, but in the last 12 months, an ad can have 10 offers in 24 hours and can sell 10 or 20% above the advertised price” commented the executive of the firm that helps investors to obtain the E-2 visa.

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