Real estate prices are driven by a wide range of factors, with location being foremost among them. But property is also subject to the simple economic law of supply and demand: When buyers outnumber sellers, prices go up.
But in cities that rely to a large degree on tourism, a decline in tourist numbers can play a big role in how properties are valued. And as the Donald Trump administration’s tariff policy has already impacted international tourism numbers, certain cities and towns are more vulnerable to a decline in property values than others.
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Here’s a list of cities that have seen decreases in tourist arrivals between 2023 and 2024. While those numbers weren’t likely affected yet by the new U.S. tariff policy, it may exacerbate those declines in 2025. Just remember that if you’re looking at buying in these areas, you should rely on more than a single data point when making your decision.
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Las Vegas, Nevada
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Year-over-year visitor counts as of March 2025: Nearly -8%
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Median home price as of March 2025: $431,505
Las Vegas is the epitome of a boom-and-bust town. When the economy is booming and tourist arrivals are up, prices can jump dramatically. But when they fall, the opposite is also true. With year-over-year visitor counts down 8%, the tourism-heavy economy could slow dramatically, potentially impacting real estate prices.
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New York City, New York
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Year-over-year visitor counts as of March 2025: *Too early to report
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Median home price as of March 2025: $768,957
New York City officials haven’t yet reported 2025 tourist arrivals yet, but anecdotal evidence suggests the general slowdown is hitting the Big Apple, as well. According to the New York Post, July hotel bookings are down 11.5% from the same time a year ago, while October, November and December bookings are down 20.6%, 19% and 19%, respectively. Those are sizable figures for a city in which tourism plays a large role.
Los Angeles, California
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Year-over-year visitor counts as of March 2025: *Too early to to report
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Median home price as of March 2025: $978,157
Los Angeles is particularly vulnerable to declines in international tourism. According to a report from the American Hotel & Lodging Association, international visitors account for 23% of overnight visitation but 49% of overnight spending.
Meanwhile, a variety of other factors, from wildfires to homelessness to long-term effects of the pandemic, have also contributed to reduced visitor counts. Tourism in Los Angeles is still at just 79% of 2019 levels, making it among the slowest cities to recover from the pandemic. With reduced international travel due to high tariffs, LA will be unlikely to top those 2019 levels in 2025.
Boston, Massachusetts
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Year-over-year visitor counts as of March 2025: *Too early to report
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Median home price as of March 2025: $759,313
Boston was anticipating a record number of international tourists this year, but the city is already preparing for those plans to fall by the wayside.
Boston typically attracts roughly 3 million international visitors per year, according to public radio station WBUR, and city officials were expecting a record 860,000 Canadian visitors in 2025. However, with international visits to the U.S. as a whole expected to drop 9.4% in 2025 — and Canadian visits to plummet by over 20% — it’s highly likely Boston’s visitor count will be impeded as well thanks to the U.S. tariff policy.
The Bottom Line
Real estate pricing is a complex mechanism, and no one single factor dictates the cost of a property. Even if U.S. tariff policy is currently reducing international visitor counts, that’s not the sole reason why prices may go up or down in individual U.S. cities.
And as that policy may reverse at any time, it may have little net effect over the long run. Still, it’s definitely worth noting that persistently low traveler counts in cities that are heavily reliant on tourism may indeed play a role in real estate values.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Don’t Buy Property in These 4 Tourist Cities While Tariffs Are High