President Donald Trump’s ban on citizens of seven Muslim-majority nations brought publicized condemnation from many industries such as technology and finance but one industry is missing from this conversation. The real estate industry.
According to The Real Deal, “Real estate industry insiders say the ban could have far-reaching consequences for the U.S. real estate market, far beyond simply eliminating investment from the seven named countries. Since the restrictions were announced, buyers from all over the world have put the brakes on buying property in markets across the nation, including in New York, Los Angeles and Miami.”
Nela Richardson, chief economist for brokerage Redfin believes that there are many customers from various countries who do not feel comfortable with buying a home if they might not be let into the country despite having visas.
“We’re hearing from customers, not just from those countries but also those on visas from other countries, who are worried that the overall tenor of this administration will make it hard to buy in today’s housing market and are pulling out of their home search,” said Richardson.
Some of the biggest investors in Los Angeles markets are from the Middle East. According to CBRE, those investors brought more than $1 billion to the Los Angeles commercial real estate market between January 2015 and June 2016.
According to president of Los Angeles-based Nourmand & Associates, Michael Nourmand, the ban may be temporary but it is already impacting the market.
“People are seeing [flaws] in decision making and in the regular channels of power, and it does show volatility,” he said. “People like the U.S. because it’s predictable.”