| Despite a recent slowdown, the U.S. real | | | | |
| estate market continues to be a popular | | | | Netherlands - 6 % |
| investment destination for foreign investors. | | | | |
| Attracted by a desirable return on | | | | The U.S. economy is wide open to foreign |
| investment, many foreign nations continue to | | | | investors. Both investors and Americans |
| invest heavily in the U.S. residential and | | | | significantly benefit from all this foreign |
| commercial real estate markets. In fact, in | | | | investment. The NAR study estimates that |
| 2005, foreign investment in U.S. real estate | | | | without foreign investments in the securities |
| reached 1.83 trillion. | | | | market, the long-term lending rates would be |
| | | | four percentage points higher than the |
| To evaluate the impact of foreign investment | | | | current rate, which would adversely impact |
| on the U.S. real estate market, the National | | | | the U.S. real estate market. |
| Association of Realtors (NAR) produced a 2006 | | | | |
| report entitled 'Foreign Investment in U.S. | | | | Foreign direct investment into the U.S. not |
| Real Estate: Current Trends and Historical | | | | only creates more jobs but also contributes |
| Perspective.' The report provides insights | | | | to the demand for U.S. real estate. In fact, |
| into the trends in foreign real estate | | | | foreign investment may be responsible for |
| investment, its impact on the U.S. economy, | | | | creating two million U.S. jobs by the end of |
| and the major countries that participate in | | | | 2006, which further bolsters the demand for |
| U.S. real estate investment. Below are some | | | | U.S. real estate. |
| highlights from the NAR report. | | | | |
| | | | Permanent and temporary immigration of |
| According to the U.S. Department of Commerce, | | | | foreign-born workers into the U.S. further |
| the top seven countries that had significant | | | | bolsters the demand for real estate. |
| holdings in U.S. real estate as of 2005 were: | | | | According to the Joint Center for Housing |
| | | | Studies at Harvard University, 1.2 million |
| Germany - 13 % | | | | net immigrants are expected to arrive in the |
| | | | United States annually. This immigration |
| Latin America - 13 % | | | | pattern is expected to offset the decrease in |
| | | | housing demand by post baby-boomer |
| Australia - 11 % | | | | generations. |
| | | | |
| Japan -10 % | | | | In summary, the impact of foreign investment |
| | | | and immigration into the U.S. will continue |
| United Kingdom - 10 % | | | | to play a major role in the U.S. real estate |
| | | | market. |
| Canada - 6 % | | | | |