Mid-Year U.S. Real Estate Pulse for 2025: A Strategic Prospect for Investors in Hong Kong

The U.S. real estate market is at a crossroads as we enter the second half of 2025: ongoing inflation, mounting building costs, a resurgence in foreign investment, and increasing geopolitical unpredictability. This unstable environment offers investors in Hong Kong both unique chances and hazards, particularly in high-potential, cheap areas like Ohio.

Mortgage Rates and the Performance of Regional Markets

At about 6.7% for a 30-year fixed loan, mortgage rates are still high, making them unaffordable for local purchasers. Foreign investors, many of whom pay in cash and face less competition, are being welcomed under the same conditions.
Regarding cost:

• Strong demand and limited availability are driving the Northeast's +7% YoY growth, which puts it at the top of the group.
• South & West: Softening demand and growing inventory are early indicators of cooling in places like Texas and Florida.
• Midwest (Ohio): A promising region for investors who prioritize yield. Prices stay the same while providing revenue potential and long-term growth.

Ohio: Underappreciated, Underappreciated, and Growing

Why is Ohio attracting more Hong Kong investors? Fundamentals hold the key to the solution:

 
• Affordability: The median price of a property is far lower than the national average.
• Stability: Due to the presence of nearby hospitals, universities, and logistical centers, markets like Columbus, Cleveland, and Cincinnati have steady rental demand.
• In contrast to coastal markets, rental yields have higher net yields.
• Occupancy Rates: Strong retention of tenants and reduced vacancy in major cities.

 
For foreign purchasers managing global turbulence, Ohio offers a combination of capital preservation and steady income.

International Investors Lead

According to NAR, foreign purchasers bought US$56 billion worth of U.S. real estate between April 2024 and March 2025, a 33% increase from the previous year. Notably: 

• 47% of all foreign buyers paid in cash, indicating a growing trend of liquidity-driven cross-border investment; 

• Ohio and other mid-tier states are gaining traction among investors seeking value and growth; 

• Florida (21%), California (15%), and Texas (10%) continue to draw the majority of overseas capital.

Many people still view the United States as a buffer against local political and currency dangers, especially for investors from Hong Kong who place a high value on property rights, transparency, and USD stability.

Investment is fueled by inbound travel.

Due to the following factors, inbound travel to the United States has significantly increased: 

• Reopened borders and easier visa processing 

• Growing interest in American healthcare, education, and retirement options 

• Business relocation and immigration planning

Thanks to digital transaction tools and remote buying services, many investors can inspect properties during lengthy trips to the United States and make selections quickly. Gateway cities and university towns, where Hong Kong purchasers frequently place a higher priority on education-led investment, are especially benefiting from the travel boom.

Macroeconomic Hazards: Geopolitics, Tariffs, and Inflation

Even though market confidence has increased, a number of obstacles are influencing investor sentiment:

 
• The cost of imported materials and goods has increased due to the reinstatement of Trump-era tariffs. Builders now have to pay an additional $11,000 per home for construction.
• Due to supply chain interruptions and trade policies, inflation has slightly returned to 2.9%.
• Conflict in the Middle East is causing uncertainty in the global economy, especially in the oil and commodity sectors, which has an indirect impact on the timeliness and input costs of real estate construction in the United States.

 
Even though these concerns could strain the supply side, they also highlight how resilient and alluring finished properties are in secure, lucrative markets.

Prospects: Where to Put Your Attention in H2 2025

The second half of 2025 demands a location-driven, well-balanced approach from Hong Kong investors:

 
• Pay attention to mid-tier growing markets with steady income and room for expansion, such as Ohio.
• To avoid large borrowing expenses, take into account cash acquisitions.
• Take advantage of inbound trip possibilities to meet with tax and legal consultants, arrange banking, and inspect properties.
• Keep an eye on inflation and tariff developments that could have an additional effect on demand, pricing, and supply.

Concluding Remark

The real estate market in the United States is changing, not going down. Hong Kong investors have the chance to take action now, before another upcycle pushes prices higher, while local purchasers are still hesitating.
Do you want property ideas or individualized guidance in important U.S. markets?

Source: 2025 U.S. Real Estate Mid-Year Pulse: A Strategic Outlook for Hong Kong Investors