Top 10 Metros of 2021 Flooded by Foreign Investment Dollars

Updated: Oct 4, 2021

US-based real estate investing is HOT, and it’s no secret given the intense competitiveness among not just the domestic players, but foreign investors that are also eager for market share.


Noted as the world’s largest economy, the United States often attracts foreign investors for a number of reasons. In the US, we have significantly better loan terms that seem almost magical to foreign investors. Candidly, capital is “cheap” in the U.S., and believe it or not, so are assets compared to many foreign market rates. Even if the investment is not significantly profitable, foreign investors are often eager to park their capital in the US for the benefits of real estate investing generally being very stable and cash flowing.


According to the Bureau of Economic Analysis, foreign direct investment in the United States increased to $4.63 trillion at the end of 2020, which is an increase of $187.2 billion from the year prior.


While international capital only accounts for 3.6% of all multifamily investments, international investors are adding to an already competitive landscape. Fueled further by multifamily rent growth showing historical gains, foreign investors are showing tremendous interest in US-based real estate investing.

Here are the Top 10 Metros of 2021 Flooded by Foreign Investment Dollars:


10. Portland

Amount Invested by Foreign Investors in H1, 2021: $75M


Average Y-o-Y Rent Growth: 8%

Percentage of Renters: 48%

Average Rent: $1,633

9. Indianapolis

Amount Invested by Foreign Investors in H1, 2021: $99M


Average Y-o-Y Rent Growth: 8%

Percentage of Renters: 45%

Average Rent: $992

8. Washington, D.C.

Amount Invested by Foreign Investors in H1, 2021: $111M


Average Y-o-Y Rent Growth: 0%

Percentage of Renters: 56%

Average Rent: $2,160


7. Miami/South Florida

Amount Invested by Foreign Investors in H1, 2021: $164M


Average Y-o-Y Rent Growth: 12%

Percentage of Renters: 45%

Average Rent: $1,915

6. Tampa

Amount Invested by Foreign Investors in H1, 2021: $181M


Average Y-o-Y Rent Growth: 21%

Percentage of Renters: 44%

Average Rent: $1,647

5. Orlando

Amount Invested by Foreign Investors in H1, 2021: $229M


Average Y-o-Y Rent Growth: 14%

Percentage of Renters: 45%

Average Rent: $1,611


4. Baltimore

Amount Invested by Foreign Investors in H1, 2021: $257M


Average Y-o-Y Rent Growth: 9%

Percentage of Renters: 48%

Average Rent: $1,432

3. Phoenix

Amount Invested by Foreign Investors in H1, 2021: $261M


Average Y-o-Y Rent Growth: 21%

Percentage of Renters: 36%

Average Rent: $1,408

2. Dallas/Fort Worth

Amount Invested by Foreign Investors in H1, 2021: $331M


Average Y-o-Y Rent Growth: 10%

Percentage of Renters: 43%

Average Rent: $1,383

1. Atlanta

Amount Invested by Foreign Investors in H1, 2021: $505M


Average Y-o-Y Rent Growth: 16%

Percentage of Renters: 57%

Average Rent: $1,723

Sources:

U.S. Multifamily Inbound Investment Trends, H1, 2021- CBRE Report

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About the Author


Ellie is the founder of Blue Lake Capital, a commercial real estate investment firm specializing in multifamily investing throughout the United States. At Blue Lake Capital, Ellie partners with both institutional and individual investors to grow their wealth by achieving double-digit returns by investing alongside her in exclusive multifamily deals they usually don't have access to.


A defining factor of Blue Lake Capital’s strategy is founded in utilizing machine learning/artificial intelligence through