May 04, 2025
If you’ve noticed fewer all-cash international offers coming through on your NYC listings lately, you’re not imagining things. The international buyer pool—once a reliable demand driver for Manhattan condos and other high-end properties—is drying up fast, and tariffs are a big reason why.
Back in the mid-2000s, foreign investors were flocking to U.S. real estate thanks to favorable exchange rates. European buyers, for example, were essentially getting a 40% discount on NYC real estate purely based on currency plays.
Fast forward to today, and not only has that advantage vanished, but political friction is actively pushing foreign interest away.
Tourism numbers tell the story best. Canadian travel to NYC is down as much as 90% year over year. That’s a huge loss considering Canada is our second largest source of international visitors.
And guess what—tourism and real estate demand go hand in hand. When people stop visiting, they stop buying second homes or pied-à-terres.
European tourism is also tanking, and it’s not just about tariffs. Immigration policies, political uncertainty, and friction with allies are all piling on. NYC has long relied on international buyers—often paying cash—for a significant share of luxury condo sales.
In some boom periods, international investors have made up half the market. Lately, that number’s closer to 15%, and it’s slipping.
The bigger issue? There’s no clear economic strategy behind all of this. Tariffs are being used as a blunt tool without regard for how they affect long-term demand or real estate values. And in the end, it’s U.S. buyers and sellers who are footing the bill.
Most international buyers lean toward new construction—think shiny condos in Midtown, Hudson Yards, and Downtown Brooklyn. When that demand slows, developers pull back, lenders get tighter, and our pipeline of luxury inventory starts to wobble.
Not to mention, a good chunk of these deals are cash, which has helped keep pricing firm in the past. Take that away, and we’re looking at more listings sitting stale.
The market thrives on stability. Whether you're an investor, developer, or listing agent, the uncertainty caused by erratic trade policy and broken global relationships is a red flag.
When foreign central banks start shedding U.S. assets faster than ever before, it's a clear sign: confidence is down.
At the end of the day, there’s no cohesive plan here—and that’s what makes it dangerous. Real estate doesn’t respond well to chaos. When global buyers back out, everyone from luxury brokers to residential sellers feels it.
Let’s hope leadership starts thinking long-term before we price ourselves out of a key demand source entirely.
Disclaimer: This content is meant for informational purposes only and is not intended to be construed as financial, tax, legal, or insurance advice.
