In the bustling neighborhoods of Downtown Crossing and Fenway, the presence of foreign students has significantly shaped the landscape of the real estate market. Families from overseas often invest in high-end condos, while students flock to some of the most expensive apartments in the city.
However, recent moves by the White House to revoke certain student visas and to specifically target Chinese students associated with the Communist Party pose a threat to this steady stream of international capital flowing into Boston.
While not all of the 82,000 foreign students attending college in Massachusetts are affluent, a notable segment relies on resources sent from abroad to cover their tuition fees and living expenses.
According to an estimate by NAFSA, the Association of International Educators, these international students contribute approximately $4 billion to Massachusetts’s economy each year.
There is uncertainty surrounding the return of these students in the fall, as legal challenges against President Donald Trump’s visa restrictions move through the courts.
Even if the mandates are overturned, they coincide with the peak season for student visa applications, leading to increasing hesitation among prospective students.
Tom Dretler, CEO of the international student advising service Shorelight Education, likened the situation to halting retail sales right before a major holiday.
“Colleges can experience four years’ worth of damage in just a month and a half,” he stated.
The potential economic fallout is accumulating. Boutiques in the area, particularly those employing Mandarin-speaking staff, are bracing for a decline in their Chinese customer base, while real estate brokers are carefully monitoring the effects of a possible dip in foreign students on the housing market.
Historically, international students have played a large role in the Boston condo market, a trend rooted in the influx of Kuwaitis during the 1990s.
It is common for families to purchase properties before their children start college and sell them afterward, often at a profit.
Brett Star, principal broker at Star Residential, remarked on the frequency of cash offers from international buyers looking for prime Boston real estate, especially from remote tours conducted over video calls.
An incident from January showcased this phenomenon, where a group of international students suddenly vacated their luxury apartment in Downtown Crossing, leaving behind valuable items, highlighting the extent of their presence even if their stay is temporary.
Many affluent rental properties in the city are occupied by foreign students, particularly at high-end venues such as the Four Seasons and Ritz-Carlton.
Brett DeRocker, partner at First Boston Realty, mentioned that about two-thirds of their high-end rentals are rented by international students.
“In a market where there might suddenly be a void due to a lack of international clientele, it raises questions about home values and potential surpluses in inventory,” DeRocker explained.
In neighborhoods like Allston, where foreign residents have transformed the community’s character, the impact of visa restrictions is already being felt.
Allston has developed into an unofficial Koreatown, complete with its own array of dining establishments catering to Asian students.
“Many local businesses would suffer from a decrease in foot traffic if these visa regulations become a reality,” stated Alex Cornacchini, executive director of Allston Village Main Streets.
This follows suit for the luxury retail sector, where foreign students spend considerably on American goods that are more affordable compared to their homelands.
One anonymous luxury retail executive noted, “The stability in luxury retail in Boston is significantly supported by the international student population.
Any reductions in student admissions from abroad will have severe repercussions for sales.”
Riccardo Dallai Jr., owner of a fashion boutique on Newbury Street, emphasized the importance of this demographic in driving his business.
Foreign students have historically frequented his shop, seeking the latest styles from high-end labels, and he hopes their attendance will continue next year.
Similarly, at Boston Foreign Motors in Allston, owner Milad Farahani relies on the academic calendar for business, as many international students turn to him for high-end vehicle purchases.
Over the years, he has observed a steady influx of clientele referring friends seeking luxury cars, with many transactions being cash offers.
Farahani expressed his concerns about the ramifications of losing this student population.
Leonardo Solís, operator of the International Student Guest House, has seen a notable decline in the number of international students seeking housing.
Having previously hosted up to 100 students annually, he now caters to just five, a drop that reflects broader trends in international enrollment post-COVID-19.
“Boston has always attracted wealthy international students, but that demographic seems to be dwindling, with uncertain prospects for the future,” Solis remarked.
In the entertainment sector, Ed Kane, co-owner of Big Night Entertainment, expressed disappointment after a planned performance by the Norwegian DJ Alan Walker didn’t sell out as expected.
Kane noted that foreign students have historically been the lifeblood of nightlife in Boston, spurring sales for clubs and venues through their patronage.
His observation reflects a larger trend over the past year, where business from international markets has steadily declined.
“Things have been declining in this area for the last 12 to 18 months,” he observed.
The concerns raised by these business owners encapsulate a broader worry about the potential economic impact of changes to visa policies and the futures of Boston’s academic environment.
As the fate of international students hangs in the balance, their ability or inability to return could redefine the city’s cultural and economic landscape for years to come.
image source from：https://www.bostonglobe.com/2025/06/16/business/foreign-student-spending-massachusetts/
