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California and New York are the most popular of 15 US states where Chinese buyers are purchasing property after other countries forced them out for driving up the housing market.
Chinese investors bought $6.1billion worth of property in the US between April 2021 to April 2022, a report by The National Association of Realtors (NAR) revealed.
Florida ties with Indiana for the third hottest pick with the Chinese. Florida Governor Ron DeSantis, 43, called a 'huge problem.'
'I don't think they should be able to do it. I think the problem is these companies have ties to the CCP, and it's not always apparent on the face of whatever a company is doing,' he told Fox News' Laura Ingraham earlier this week.
But a report by the Wharton School of Business at the University of Pennsylvania says the real reason for the purchases is often more mundane - to avoid paying taxes in China.
The Sunshine State reached its 14th consecutive year as the top pick for foreign buyers.
DeSantis shares similar views to countries, such as New Zealand, Australia, and Canada, which have imposed taxes on foreigner buyers purchasing property.
New Zealand, where Chinese investment has been blamed for a huge spike in home property prices, now charges a 15 percent tax to non-resident buyers. Australia imposes a 12.6 percent tax on any foreign buyer purchasing a home valued higher than $750,000 and have been since 2017. And in Canada, the government takes 50 percent of any sale as a withholding tax.
The US, however, does not impose tax restraints on foreign buyers, according to the Wharton Business Journal of UPenn.
Around half of all properties that foreigners buy are used as primary residences, with the remainder used as vacation homes, second homes or a pied-a-terre that the owner will occasionally visit.
Data from the National Association of Realtors further showed that 58 per cent of Chinese buyers paid for their American properties entirely with cash.
The same survey showed that 52 per cent of Chinese people intend to use their US homes as a primary residence - with a further 25 per cent using it as a vacation rental. Meanwhile, the most popular type of property for Chinese buyers were detached single family homes, with 66 per cent opting for a house like that.
Roughly one in ten preferred townhouses, with the same figure favoring condominiums.
A chart from the National Association of Realtors shows that the vast majority of Chinese buyers of US property - 58 per cent - say they plan to use their purchase as their primary residence, while another quarter say it was bought as a vacation rental
Another chart from the NAR showed that two thirds of Chinese buyers favored detached single family homes, with nine per cent favoring townhouses, and another 10 per cent opting for a condo
Another chart shows that 58 per cent of Chinese buyers paid for US properties entirely in cash
'A big part of that was about wealthier Chinese citizens moving their money abroad to avoid taxes and to avoid scrutiny,' real estate professor Benjamin Keys told the business journal.
US zip codes that hold the highest number of foreign buyers have increased housing prices by eight percent, according to the journal. Keys says the number of new jobs has increased far more than the number of available housing, causing property values to skyrocket.
The San Francisco Bay Area - located in the number one state for Chinese buyers - has seen a 30 percent increase in employment, but not even a 10 percent increase in housing units, Keys revealed.
'The big picture is we have an affordability crisis for housing in the cities where the jobs are,' he said. 'There are a lot of hoops to jump through to get anything built in these places, especially to build in a way that is dense.'
The top two most populated cities of 2022 - New York City and Los Angeles - as well as the 8th and 10th biggest cities, San Diego and San Jose, are found in the top most popular states.
Chinese buyers mostly bought primary residences, while eight percent bought it for student use
Chinese buyers spent $6.1billion on US property between April 2021 to March 2022, followed by Canada at $5.5billion
The top 15 states range in location, however, many are located in the South and warmer states, such as Oklahoma, Arizona, Hawaii, North and South Carolina, among others.
Keys also said that Chinese buyers are also sweeping up US property to 'avoid taxes and to avoid scrutiny' as many countries have started imposing taxes on them.
Foreign markets often impose a 'foreign real estate buyer tax' to deter foreign buyers and to stabilize housing prices in the market, the UPenn business journal reported.
Wharton cited 10 policies imposed by five other countries in response to foreign investment in property that made the US 'relatively cheaper to invest in' because of its non-existent regulation.
Singapore, Hong Kong, the Canadian regions of British Columbia and Ontario, Victoria in Australia and New Zealand all imposed additional taxes on foreign buyers of residential property in a bid to avoid a huge spike in prices caused by demand from foreign buyers.
Singapore introduced its tax, known as stamp duty, in 2011, and it now sits at 20 per cent. In Hong Kong, stamp duty sits at 30 per cent for non-resident property buyers. People buying second homes are also hit with a similar amount of tax.
But Wharton Business School property expert Keys said that if COVID continues to drag on, it could actually offer relief to domestic buyers who find themselves priced out of the US property market.
Benchmark interest rates now sit at between 2.25 per cent and 2.5 per cent. Thursday's Federal Reserve rate increase of 0.75 per cent has put $200 on the cost of the average US mortgage.
The fact that it's now considerably dearer to pay off a mortgage - and continued uncertainty over whether there'll be a correction in property prices - has already seen the market begin to cool-off.
He explained: 'Clearly, there would be an advantage for domestic homebuyers.'
As Chinese and other foreign buyers continue to spend billions on US property, NAR found that China - which also includes Hong Kong and Taiwan in the data sample - are mainly buying 'primary residences,' compared to vacation or rental homes.