You can say what you like about Donald Trump but he is a man who knows his own mind – a man who is good to his word even if his word causes a backlash for the new president. The “spur of the moment” decision to limit immigration into the US by specifically targeting “Muslim nations” has created headlines around the world. There is confusion and mayhem in airports across the globe, individuals with dual citizenship are been turned away and this is in danger of turning into a nightmare. So, will Donald Trump’s new immigration policy impact demand for real estate in the US?
The US borders are not closed
While the headlines might insinuate differently, borders to the US are not closed and immigration from many countries continues as normal. Therefore, the US is still attracting a significant influx of visitors from overseas pushing up demand for real estate. Very often the “downside” to immigration is highlighted by the mass media and the politicians but immigration plays an integral role in a growing real estate market. So, while the ban on immigration from certain countries is headline news the long-term impact in terms of numbers might not be as strong as many would have you believe.
However, what is this new policy doing for the image of the US around the world? Is there a real danger that individuals and companies will shun the new look “Trump America” and look elsewhere?
Does protectionism work?
Only a few days ago we were talking about protectionism for the US business market and now we are talking about protectionism for the US as a whole. Will Donald Trump now look to limit overseas investment in the US real estate market? Highly unlikely especially when you bear in mind his particular skills set takes in the real estate market.
Trump has been warned time and time again that protectionism does not work and can give the impression that the USA is not open for business. When you take into account the billions of dollars which pour into the US real estate market from overseas, there is a real danger of tarnishing the image of the US real estate market. In theory many people might silently support Donald Trump’s move against immigration from “threatening countries” but the backlash this has created is only just starting.
Will Trump see out his presidency?
There will no doubt be speculation regarding the presidency of Donald Trump and whether indeed he will see out his time in office. There have been concerns about his business interests, his exposure to the real estate market, his anti-immigration policies and now by all accounts his team are fighting their own internal legal advisers.
So, while the real impact of recent immigration changes may be minimal in terms of numbers compared to the overall figures, it does not give the right impression. The US seems to be looking inwards as opposed to looking outwards and would not appear to be welcoming of visitors from certain countries. Will these restrictions extend to business? Will investment in real estate be restricted? Nobody really knows at this moment in time.