The recent announcement of the Trump Gold Card replacing the EB-5 Green Card has sparked discussions. People are considering its impact on U.S. real estate investment. This policy shift has a higher investment threshold. It does not need job creation. These changes will reshape the luxury property market and foreign investor landscape.
What Is the Trump Gold Card?
The Trump Gold Card is a new visa program requiring a $5 million investment for U.S. residency and a pathway to citizenship. This replaces the EB-5 Immigrant Investor Program, which allowed foreign investors to gain a green card by investing $1.05 million (or $800,000 in targeted employment areas) and creating at least 10 U.S. jobs.
Commerce Secretary Howard Lutnick reports that the new program targets “world-class global citizens.” It also eliminates fraud risks linked to the EB-5 program (AP News).
How Will This Impact U.S. Real Estate?
The U.S. real estate market, especially in North Carolina and other investor-friendly states, will see several key shifts:
1. Shift from Commercial to Luxury Residential Investment
The EB-5 program directed funds toward job-creating commercial real estate. In contrast, the Trump Gold Card will drive more investment into luxury residential properties. It will shift funds into luxury markets. The Gold Card will also increase investment in high-end residential projects. It will also encourage investment in high-end developments.
2. Potential Decline in Development Funding
Job creation is no longer required. Real estate projects that relied on EB-5 funding face challenges. This includes hotels, mixed-use developments, and urban revitalization projects. They will struggle to secure other financing.
3. Increased Demand for High-End Real Estate
Wealthy international investors seeking U.S. residency will boost luxury home sales. This is especially true in states with favorable tax policies. States like Florida, Texas, and North Carolina also offer attractive investment climates.
What This Means for North Carolina Real Estate
North Carolina’s Triangle Region (Raleigh-Durham-Chapel Hill) has been a hotbed for real estate investment. If foreign capital shifts toward luxury properties rather than commercial developments, investors need to change their strategies. Developers should also align their strategies with the new demand.
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References: Reuters, AP News, Business Insider, and Business Standard.
