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