The US real estate market is the largest in the world and has attracted a wide range of market participants, including pension funds (foreign and domestic), sovereign wealth funds, foundations and endowments, public companies, banks and insurance companies, and private investors. There are numerous ways to invest in the market, including debt and public and private equity. This article provides an overview of how foreign investors — particularly Asian investors — should approach the US market and offers current investment options that RCLCO Fund Advisors (RFA) believes will generate attractive risk-adjusted returns.

US real estate market in context

The total size of the US real estate market was estimated by MSCI to be US$4.1 trillion in 2021. The United States is by far the largest real estate market in the world, accounting for 42 percent of the global real estate universe, and more than four times larger than the next biggest market, Japan (see