Foreign buyers of U.S. apartment buildings spent well over $10 billion per quarter in recent quarters, above the volume seen in late 2016 and early 2017.
A global economic expansion has been underway long enough for many investors to begin to worry about a potential downturn. But foreign money continues to flow into U.S. apartment properties, since these buildings are considered one of the safest possible places for foreign investors to put their money.
Foreign money can now enter the U.S. through structures including private equity funds and private real estate investment trusts (REITs). These entities often partner with firms based in the U.S. that can handle the management of the properties and can supply deep knowledge of the local real estate market.
Foreign investors are also happy to achieve yields on their investments that are a relatively high compared to what they can get in their home countries.