A dramatic new $100,000 H-1B visa application fee could sharply reduce the pool of qualified homebuyers in tech hubs nationwide, threatening demand in markets where foreign-born tech workers have driven sales for years.
The Trump administration’s September 21 policy change represents a massive jump from the previous fee structure, where entering a candidate into the H-1B lottery cost just $215 and filing an approved application ran approximately $5,000 in government fees.
Scale of Exposure
H-1B visas serve approximately 700,000 workers living in the US, with about 400,000 visas issued in fiscal 2024. These workers earned a median salary of $120,000—double the median earnings of full-time US workers—and are concentrated in professional, scientific, and technical services.
“In many markets across the country, well-paid H-1B workers represent homebuyer demand,” said Ali Wolf, Zonda’s Chief Economist. “The large fee could equate to a substantial decrease in the number of new H-1B visas applied for and approved every year, which in turn could reduce the pool of qualified homebuyers.”
Most Vulnerable Markets
The top five cities for initially approved H-1B “new employment” visas in fiscal 2023 were New York City (1,291 visas), Chicago (1,115), College Station, Texas (1,025), Irving, Texas (861), and Richardson, Texas (856).
Smaller cities with high exposure to tech staffing firms face particular risk. In College Station, 948 of 1,025 new H-1B approvals came from Cognizant. Richardson saw similar concentration, with Infosys accounting for 729 of 856 approvals.
Amazon leads all US companies in H-1B usage with over 14,600 approvals in fiscal 2025, followed by Tata Consultancy Services (5,600), Microsoft (5,200), Meta (5,100), Apple (4,200), and Google (4,200).
Economic Debate
While reducing H-1B holders could open opportunities for some US workers, research suggests these foreign workers often complement rather than replace American employees, contributing to innovation and higher productivity. Another concern: the fee could drive increased offshoring, where companies hire overseas rather than paying the application cost.
Builder Considerations
Markets with diverse tech employers may prove more resilient than those dependent on a handful of large H-1B sponsors or tech staffing firms. The new fee takes effect for petitions submitted after September 21, 2025, including the 2026 lottery.
“The sudden implementation of the new fee could cause significant labor market disruptions, dampen innovation, and cause large vacancies at companies heavily reliant on H-1B workers,” Wolf warned.
The insights in this article were taken from more in-depth research reports published in Zonda’s National Outlook subscription.
