Will Trump’s Wall Hurt San Diego Real Estate?
As we wait patiently for President Trump to announce exactly how he will pay for a new border wall, we are curious as to how it may effect San Diego Real Estate.
In January, Trump called for construction of an expanded wall in an executive order on border security, along with increased border patrol presence to monitor immigration.
It’s not often that a political candidate actually keeps his promises, but now that it looks like he will in fact pursue construction, will it effect our Real Estate market?
It doesn’t really make any sense to expect any changes in greater San Diego, but border towns and properties may benefit from perceived safety improvements. Ranches that sprawl along borders have had problems with people crossing through their property, an issue that could negatively effect value.
How does that wall look from your kitchen window? Homes built along the border could very well be judged on the appearance and upkeep of the wall within their view.
Some retailers are concerned that difficulties at the border will drive down sales to Mexican consumers. In response, it has been argued that increased safety perceptions could bring more Americans closer to the border. But a proposed 20% tax on Mexican imports would definitely slow down Mexican business on the other side of the wall, which in turn would hurt U.S. warehouse and trucking businesses. The shared decline would erode income and housing demand.
The bottom line is that no one really knows what will happen. But many indications point to a downturn even for areas that already have a border wall. Increased taxes and border security would discourage imports and local shoppers, reducing income and housing needs.
And in the end, it is possible that we won’t even find out, it’s kind of an expensive wall.