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
---
About Ellie Perlman
At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.
In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.
Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.
Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.
You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.
Sources:
