Are you looking for real estate in the USA? We show you the way through the American property jungle - from apartment hunting and home buying to property management in your home country.
Limitless space or small and functional – what does your American dream home look like? No matter whether you want to buy or rent a property in the USA: before you start searching for a home, you need to think carefully about what you want your future residence to be like.
Typically, you'll find these types of properties in the United States:
The prices of real estate in the USA vary greatly depending on location and amenities. In general, however, it can be said that real estate prices in the USA have risen sharply during the last decades.
In the United States, buying houses and apartments is very common. More than 65 % of all US residents owned real estate in 2021. In the long run, buying a property in the USA can be cheaper than renting an apartment permanently, but you need to have enough money in your pocket.
The purchase price of real estate in the USA has risen sharply over the past 40 years. While the average American home cost around $ 64,000 in the 1980s, the average purchase price for a property in the USA had risen to $ 233,000 by 2005.
The brief decline in purchase prices as a result of the real estate crisis of 2008 was not enough to stop the upward trend in the long term. Purchase prices for real estate in the USA increased sharply again over the past decade, reaching an all-time high of around $ 429,000 on average in the first quarter of 2022.
Many financial experts anticipate that the key interest rate increases decided by the Federal Reserve in 2022 will once again dampen or even lower real estate prices in the USA. Although prices have already fallen slightly in July and August 2022, it remains to be seen at this point how the US real estate market will actually develop over the next few years.
The purchase price of a property in America also depends very much on the region or the US state in which you plan to settle. There are significant price differences in this regard. In 2022, it will still be possible to buy a property for under $ 200,000 in the most affordable states of Arkansas, Iowa, Kentucky, Mississippi, Oklahoma, and West Virginia. In contrast to this, average property prices of over $ 800,000 can be expected in the most expensive states Hawaii and California, as well as in the District of Columbia.
As of July 2022, individual US states had the following average home prices:
Have you decided to rent an apartment or a house in the USA? Even when renting a property, you can expect large price differences depending on the state you are in. Furthermore, you should expect to dig deep into your pockets in major cities, urban areas, and other popular locations (e.g., a beachfront house). In rural areas, on the other hand, you can still find a great apartment for comparatively little money.
This is where you can expect the highest average rents in the USA in 2022:
The lowest average rents on the market in 2022 can be found in these states:
When you rent a home in the USA, you usually save a lot of money on the furnishings because some of the pieces are already built in. Typically, American houses and apartments include built-in closets or walk-in closets, and sometimes kitchen furniture or even kitchen appliances.
Once you have decided on where in the USA you would like to settle, the actual search for real estate offers can begin. There are various approaches and a lot to consider.
If you want to search for a property in the USA on your own, there are various online portals available. For example, you can use these websites for your real estate research:
There are a number of things to consider when looking for the right property in the USA. Aside from the type of property and its price, you should also carefully consider the environment of your potential new home. For example, ask yourself the following questions:
You can get a first impression of whether a neighborhood meets your expectations not only by visiting the prospective new residential area in person. You can also find answers to many of your questions on portals such as Neighborhood Scout and Reddit or in topic-related Facebook groups in which residents and USA fans share their knowledge and tips with each other.
If you need assistance in finding a property in the USA, you can contact a realtor or real estate agent. Especially when buying a house or apartment, it is advisable to seek professional advice, as each state has its own laws regarding the purchase of real estate.
Realtors and real estate agencies will give you comprehensive and reliable information on state regulations, tax circumstances, required documentation, and legal aspects.
If you want to buy or rent a property in the USA, you should have the following documents and proofs ready:
Anyone can buy real estate in the USA – regardless of whether they are a US citizen or Green Card holder. Purchasing is even relatively easy, as there are no federal restrictions on the US real estate market. Only housing cooperatives often have regulations that exclude foreign ownership.
As a foreign buyer of real estate in the USA, you must apply for an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number.
As a Green Card holder, you enjoy almost all the rights of a US citizen.
The most straightforward way is to win the Green Card Lottery, in which the US government gives away 55,000 of the popular immigrant visas each year.
Do you have specific plans to immigrate to the USA but still hold property in your home country? Especially if you are now focusing all your energy on building a new life in the USA, a professional real estate agent can be a great help to leave life in your old home behind you or to temporarily manage your property.
Owners who want to sell a house or apartment are faced with various tasks that an experienced real estate agent can usually take on. These include the correct valuation of the property, the creation of an exposé, and the marketing of the property through appropriate channels.
Real estate professionals are well acquainted with the situation and expected developments in the regional real estate market and are familiar with the wishes of the target group. Furthermore, they are trained to present a property convincingly during viewings and to conduct sales negotiations with potential customers.
Your stay in the USA is limited in time, or are you not yet sure whether you would like to return home later? Then it is advisable to rent out the property in your home country.
A property manager who takes care of all matters concerning the rented apartment during your stay in the USA can be a tremendous support. The tasks taken over by professional property managers include:
Do you have more questions about buying or renting a property in the USA? You're sure to find the answer in our FAQ.
If you are looking for assistance in buying a property in the USA, you will probably come across the terms realtor and real estate agent. Both are reliable and professional partners. The difference between them is that a realtor is a member of the National Association of Realtors and is bound by its code of ethics.
For the final phase of the real estate purchase in the USA, you can hire a closing agent. He is a real estate specialist and will assist you in reviewing all documents for the home purchase. Furthermore, he prepares the necessary documents for the buyer and seller, has them signed, and notarizes the signatures.
Absolutely. Not only is it possible, but it can even bring benefits because, in some cases, it can save costs (e.g., for mortgage application or loan approval).
No, you do not need to be in the USA to complete the purchase. Alternatively, you can provide a power of attorney and authorize another person to sign on your behalf.
In addition to the property itself and fees for the real estate agent, there may be other costs associated with buying a property in the United States. These include:
You can obtain an Individual Taxpayer Identification Number (ITIN) from the Internal Revenue Service (IRS) by filing Form W-7. You can apply for it if you are not among the groups of people who are eligible for a Social Security Number (US citizens, Green Card holders, and people with a valid work visa).
The American Green Card is the most sought-after immigrant visa in the world and grants a permanent right to reside and work in the USA. To get the Permanent Resident Card, you have several options (Green Card Lottery, family reunification, job, investment). Unfortunately, the purchase of real estate in the USA is not one of them.
Are you planning to move to the USA and require more information to prepare yourself for this big step? Then take a look at our other guides: