Why Foreign Investors Are Betting Big on Regional Housing

FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate

The Northeast and Midwest housing markets are doing something they shouldn’t be able to do right now. While the national market cools under the weight of high interest rates, key local and regional markets have surged with a remarkable 10.3% appreciation over the past year.

This isn’t a random fluctuation. It’s a fundamental market shift that creates a perfect opportunity for international investors seeking a property investment in the USA.

I’ve been investing in U.S. real estate as a foreigner since 2016, building a portfolio of over 120+ properties. What I’m seeing now is a distinct divergence between regional markets, and savvy international investors are already capitalizing.

Related: How to Get a Foreign National Mortgage Without a Visa or SSN

Why Domestic Buyers Are Sitting Out

American buyers are hesitating. They’re fixated on interest rates and national headlines predicting market slowdowns and/or corrections. This hesitation creates space for international capital to move in.

The reality on the ground tells a different story than national averages suggest. While domestic buyers wait for the “perfect” moment to enter, they’re missing regional outperformance that’s happening right now.

Working-class suburbs in the Northeast, Midwest and South are showing strong fundamentals. Population redistricution is driving inward migation and growing populations in these suburban neighbourhoods and families seek out areas with better housing affordability, lower cost of living, and access to robust jobs markets. It’s creating a perfect storm for long-term appreciation.

Related: Population Trends Driving Foreign Investment In USA Property

The Foreign Investor Advantage

International investors bring unique advantages to this market environment. First, many come from countries where interest rates have historically been far higher than in the U.S., making current rates less psychologically prohibitive. In Brazil for example, mortgage rates can reach a stunning 30%.

Second, foreign investors often take a longer-term view, focusing on decade-long horizons rather than short-term fluctuations. They want to build a legacy of dollar-denominated assets that prodcue cashflow in USD.

Related: The Best USA Mortgages for Foreign Nationals in 2025

How Foreign Investors Can Capitalize

For international investors looking to enter this market, several strategies have proven effective:

Focus on working-class suburbs within 30-45 minutes of major economic centers. These areas often provide the best balance of affordability and appreciation potential.

Consider single-family homes and small multifamily properties (2-4 units) that appeal to both the rental market and potential future resale to owner-occupants.

Partner with local property management teams who understand local regulations and can handle day-to-day operations.

Leverage US mortgages for foreign nationals. There are now more options than ever for non-U.S. citizens, including specialized DSCR loans with 30-year fixed interest rates.

Take advantage of the US tax code. US taxes for foreigners who own real estate can be pretty low – sometimes less than zero – if you file your US tax return correctly and take advantage of tax treaty benefits.

Related: Real Estate Closing Costs in the USA for for Foreign Property Investors

The Window Won’t Stay Open Forever

Market inefficiencies don’t last indefinitely. The current gap between these key regional markets and national perception will eventually close as domestic buyers recognize the regional opportunity.

International investors who move now have the advantage of less competition and potentially significant upside as broader market sentiment catches up to regional realities.

The key is acting with diligence and local expertise. Remote investing requires systems, processes, and trusted partners on the ground.

Related: Cleveland’s Population Shift is Driving Real Estate Investing Opportunities

Looking Forward

This regional outperformance isn’t just a temporary anomaly. It reflects fundamental strengths in these regional economies and housing markets.

For foreign investors with a long-term perspective, current conditions present a strategic entry point into markets that have historically delivered strong returns and will likely continue to do so.

Ask yourself: Are you positioning for where the market is going, or where everyone thinks it’s going? The difference could determine your investment success in the years ahead.

At Cashflow Rentals, we’ve been helping non-U.S. citizens navigate these opportunities since 2022, building on our own experience as foreign investors in the American market. The current Northeast surge is exactly the kind of opportunity we’ve learned to recognize and capitalize on.

The data is clear. The opportunity is present. The only question is whether you’ll act while the window remains open.

FREE DOWNLOAD: 10 Costly Mistakes Foreigners Make Buying U.S. Real Estate