A new wave of global investment is entering the U.S. housing market, and this time it's coming from Japan.

I'm Kathy Fedke, and this is Real Estate News for investors.

This is Real Estate News with Kathy Fedke.

According to a new report from Realtor.com, four Japanese firms have announced deals to snap

up home builders, including Sumitomo forestry company LTD's plan to acquire TriPoint

Homes Inc in a $4.5 billion deal. And Washington-based J.K. Monarch was bought by Daewa House

brand True Mark Homes. Moves like this signal a growing

confidence among international investors in the resilience of U.S. housing. It comes down to supply

and demand. The U.S. is estimated to have a shortage of about 4 million homes. Japan has the

opposite problem. Its population is shrinking, and fewer people

are buying homes. As a result, Japanese builders are looking for growth elsewhere, and the U.S.

is a major opportunity. As realtor.com economist Joel Burner explains, there is simply more demand

for housing here. These companies

aren't just bringing money. They also bring experience, strong manufacturing systems,

and access to capital. That gives them an advantage, especially as they target smaller

regional builders. Many of these builders already have land and are ready to build,

but may need additional

funding to move projects forward.

At the same time, the U.S. home building industry is shrinking.

The number of builders has dropped significantly over the past two decades, and today the

top 100 builders control about half of all new home sales.

This points to ongoing consolidation in the industry.

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