Foreign Buyers Can't Resist U.S. Multifamily
Investors continue to favor U.S. multifamily real estate for strong returns; 44% plan to increase investments in 2025, with a focus on housing affordability.
NEW YORK — Despite global tensions and policy shifts, foreign investors remain drawn to U.S. real estate, particularly the multifamily sector, due to its strong fundamentals, an AFIRE International Investor Survey found.
The survey, by the Association of Foreign Investors in Real Estate, found multifamily remains a key asset for most global investors, who prioritize returns over geopolitics. However, 80% of respondents see political instability and economic realignments as major threats, with 63% holding a negative short-term outlook.
Still, 44% plan to boost U.S. investments this year versus the previous year’s 24%. The top five preferred markets for investments in 2025 are Dallas, New York, Miami, Boston and Atlanta. Canadians and Germans, in particular, are attracted to the U.S. multifamily market’s strong fundamentals, such as scale, growth and tax efficiency, and plan to increase their 2025 holdings.
Sixty-six percent of respondents said the most important issue in U.S. real estate over the next five years will be housing affordability and availability, particularly in the Sun Belt states.
The uncertainty in financing due to fluctuating Treasury rates and tariffs complicates underwriting, yet higher costs may curb new construction, tightening supply and supporting rent growth. Ultimately, while politics may momentarily shake investor confidence, the fundamentals of scale, yield and growth in U.S. multifamily real estate continue to attract capital, particularly from investors seeking to diversify away from constrained domestic markets like Canada.
Source: Multi-Housing News (04/23/25) Kirk, Patrick
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