More and more countries are reporting on the collapse of investment. Recently, we wrote about the situation in Finland, and now the U.S. experts have also reported a drop in real estate investments.

In the fourth quarter of 2022, investors bought 45.8% fewer homes in America. This is the biggest year-over-year decline in investor activity since 2000. The report was published by Redfin.

Rising interest rates and lower home prices are the reasons for a record number of investors leaving the market. However, it is noted that if borrowing costs come down, the situation could change for the better.

“It’s entirely possible that investors will start to return to the market this year, given that mortgage rates have fallen from their 2022 highs,” Shekharyar Bokhari, senior economist at Redfin, said in the report. “But it’s unlikely that investors will return with the same vigor as they did in 2021.”

How can a foreigner invest in the U.S. real estate market and what should be considered?

If we look at the drop in investment on a quarterly rather than annual basis, the situation is as follows: compared to the third quarter of 2022, investors spent 27.5 percent less on home purchases in the fourth quarter. The cost of a typical home purchased by investors is $425,926.

A total of 40 regions were analyzed. Las Vegas saw the largest year-over-year drop in the fourth quarter of 2022 at 67%. Phoenix followed with a 66.7% decline in real estate purchases, followed by Nassau County, New York (down 63%), Atlanta (down 62.8%), and Charlotte, North Carolina (down 61.9%).