Chinese investors in the US residential rental market: Micro evidence

Chuan Lin; Michael J. Seiler; Ralph B. Siebert; Liuming Yang

doi:10.1111/1540-6229.12517

Chinese investors in the US residential rental market: Micro evidence

Chuan Lin, Michael J. Seiler, Ralph B. Siebert, Liuming Yang

Department of Finance, Accounting and Economics

Research output: Journal Publication › Article › peer-review

Abstract

This article examines rental prices charged by Chinese investors in the US residential rental market. Focusing on homes purchased by an individual investor and subsequently rented from 2000 to 2021 in Orange County, CA, we find that Chinese landlords, who are identified by all-cash buyers with Chinese names, charge an average rental price discount of 4.0% compared with domestic landlords. The underlying mechanisms are likely a wealth effect and risk diversification strategy. The rental price discount is more pronounced for luxury, larger, and newly built properties. Our study complements studies of the China shock effect on US housing markets.

Original language	English
Journal	Real Estate Economics
DOIs	https://doi.org/10.1111/1540-6229.12517
Publication status	Accepted/In press - 2024

Keywords

China shock
Chinese investors
rent
rent-to-price ratio
residential rental market

ASJC Scopus subject areas

Accounting
Finance
Economics and Econometrics

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10.1111/1540-6229.12517

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title = "Chinese investors in the US residential rental market: Micro evidence",

abstract = "This article examines rental prices charged by Chinese investors in the US residential rental market. Focusing on homes purchased by an individual investor and subsequently rented from 2000 to 2021 in Orange County, CA, we find that Chinese landlords, who are identified by all-cash buyers with Chinese names, charge an average rental price discount of 4.0% compared with domestic landlords. The underlying mechanisms are likely a wealth effect and risk diversification strategy. The rental price discount is more pronounced for luxury, larger, and newly built properties. Our study complements studies of the China shock effect on US housing markets.",

keywords = "China shock, Chinese investors, rent, rent-to-price ratio, residential rental market",

author = "Chuan Lin and Seiler, {Michael J.} and Siebert, {Ralph B.} and Liuming Yang",

note = "Publisher Copyright: {\textcopyright} 2024 American Real Estate and Urban Economics Association.",

year = "2024",

doi = "10.1111/1540-6229.12517",

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AU - Lin, Chuan

AU - Seiler, Michael J.

AU - Siebert, Ralph B.

AU - Yang, Liuming

PY - 2024

Y1 - 2024

N2 - This article examines rental prices charged by Chinese investors in the US residential rental market. Focusing on homes purchased by an individual investor and subsequently rented from 2000 to 2021 in Orange County, CA, we find that Chinese landlords, who are identified by all-cash buyers with Chinese names, charge an average rental price discount of 4.0% compared with domestic landlords. The underlying mechanisms are likely a wealth effect and risk diversification strategy. The rental price discount is more pronounced for luxury, larger, and newly built properties. Our study complements studies of the China shock effect on US housing markets.

AB - This article examines rental prices charged by Chinese investors in the US residential rental market. Focusing on homes purchased by an individual investor and subsequently rented from 2000 to 2021 in Orange County, CA, we find that Chinese landlords, who are identified by all-cash buyers with Chinese names, charge an average rental price discount of 4.0% compared with domestic landlords. The underlying mechanisms are likely a wealth effect and risk diversification strategy. The rental price discount is more pronounced for luxury, larger, and newly built properties. Our study complements studies of the China shock effect on US housing markets.

KW - China shock

KW - Chinese investors

KW - rent

KW - rent-to-price ratio

KW - residential rental market

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SN - 1080-8620

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JF - Real Estate Economics

ER -

Chinese investors in the US residential rental market: Micro evidence

Abstract

Keywords

ASJC Scopus subject areas

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