Foreign funds help make housing unaffordable: research
New research suggests that foreign investment in U.S. housing significantly contributed to rising home prices between 2011 and 2018. The study highlights that insufficient supply elasticity in many cities exacerbated the impact of this foreign capital on affordability.
Why it matters
Understanding the drivers of the housing affordability crisis is essential for policymakers attempting to address the widening gap between home prices and local income levels.
It’s no secret that U.S. housing has gotten less affordable. From 2019 to 2025, average home prices rose 60%, according to the Harvard Joint Center for Housing Studies .
The article relies on academic research findings to explain economic trends without taking a political stance on immigration or foreign investment.
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