Living in the United States just became more costly for certain visa holders. On Sept. 18, President Donald Trump signed a proclamation requiring companies to pay a new $100,000 fee on H-1B visas for highly skilled workers, according to Realtor.com.
The administration stated that the H-1B program, originally designed to bring in temporary workers to perform high-skilled functions, has been “deliberately exploited to replace, rather than supplement, American workers with lower-paid, lower-skilled labor.”
Who Is Affected
The policy targets a majority of highly skilled foreign workers in the U.S., many of whom are employed in computer and technology-related fields. According to FWD.us, there are an estimated 730,000 H-1B holders in the country. In 2023, the median wage for these workers was $118,000.
These workers and their families play a significant role in the housing economy. The new fee — along with the uncertainty surrounding visa costs — could influence decisions on home purchases and rentals.
Key Markets
States most affected include financial and technology hubs such as New York and New Jersey, California, Washington, Virginia, Washington, D.C., and Texas.
According to the U.S. Citizenship and Immigration Services H-1B Employer Data Hub, the top five metros for approved H-1B visas per 100 workers in 2023 were:
- New York City
- Chicago
- College Station, Texas
- Irving, Texas
- Richardson, Texas
Eric Finnigan, vice president of demographics research at John Burns Real Estate Consulting, noted that smaller cities with concentrated employer applications could also experience effects. For example, most approvals in College Station were for Cognizant, while nearly all in Richardson went to Infosys.
Housing Market Implications
Economist Jiayi Xu of Realtor.com® explained that many foreign workers may delay homeownership and remain in the rental market longer. With their higher incomes, this could add demand to high-end rentals, especially in markets with limited supply and sizable foreign worker populations. In New York City, where rents are already at record highs, the impact could be especially pronounced. As of August, the city’s median asking rent was $2,946.
For those still planning to buy, the uncertain policy environment and tightening immigration climate could pose financing challenges. Lenders may require larger down payments or impose higher mortgage rates on visa holders.
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