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nternational demand for US residential real estate is unlikely to be boosted by a currency play, unlike in the 2006-2008 period when investors took advantage of significant discounts due to exchange rates. Canada's tourism industry is boycotting the US, with bookings from Canada to Manhattan down 70% to 90%, and this trend is mirrored in Europe where travel to the US is plummeting.

    This decline in international tourism correlates with reduced demand for US real estate, particularly in new construction projects. In New York City, for example, global buyers account for around 15% of all residential sales, mostly condos, and can reach up to 50% during periods of favorable currency exchange rates. However, the current tariff policies are likely to deter international investors.

    The lack of a clear strategy behind the tariffs is causing concern among economists and real estate professionals. Tariffs are seen as a tax on American consumers, and their impact is not well understood by those who advocate for them. The absence of a plan is leading to overreaction and panic in the real estate industry, which relies heavily on stability and safety.

    The situation is further complicated by the fact that global central banks have been shedding their US holdings at an unprecedented pace. China's experience with manufacturing job losses due to robotics also raises questions about the wisdom of emulating its approach. The National Association of Realtors' International Transactions in U.S. Residential Real Estate survey will provide valuable insights into the current state of international demand for US real estate when it is released in July.

    Investors are being deterred from investing in US real estate due to immigration and tariff policies, which lack a clear strategy or plan. This situation is likely to have significant implications for the US economy and the real estate industry as a whole.