Wall Street News Roundup: State of Emergency on Housing, Vegas' Tourism Problem and Illegal Tariffs

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I'm Nicole Lappin, the only financial expert you don't need a dictionary to understand.

It's time for some Money Rehab.

A very happy Friday to you, Money Rehabbers.

It is time for a roundup of the biggest stories on Wall Street and how they're going to affect you and your wallet.

This week, we're looking back at summer travel numbers, unpacking the latest tariff drama, and asking if the housing market is officially in an emergency.

Let's start with travel.

It is the first week of September, and I do hope you got to sneak away somewhere fun this summer.

If your faith looks anything like mine, though, you've probably seen these viral videos of an empty Las Vegas claiming no one is showing up.

That is fake news.

People are still flocking to Vegas, but the numbers are not so much though that you stroll into the Venetian and book a room facing the sphere for 50% off, but enough that the city's balance sheet is feeling it.

For context, 3.1 million people visited Las Vegas in June, and that is down 11% or 400,000 fewer visitors.

Not catastrophic, but let's be real, if your paycheck suddenly dropped by 11%,

you would notice.

I certainly know I would.

Vegas is a fascinating test case, though, for travel in the U.S.

Vegas draws both Americans and international tourists.

And while what happens in Vegas may stay in Vegas, what happens in Vegas tells us a lot about broader travel trends.

Domestically, people are still traveling, but they're trading in big ticket destinations for smaller, closer, and keyword here, cheaper trips.

Think swapping Venice, Italy for Venice Beach.

So it makes sense that Vegas's numbers are down because Vegas isn't the bargain getaway it used to be.

Breakfast for two can run you 60 bucks, and that is not exactly cheap weekend escape territory anymore.

Now, zooming out, it's not just Americans pulling back.

Canadians aren't coming here the way they used to either, which is understandable, but we do miss them.

International travelers more broadly are avoiding the U.S.

as well, in part because of stricter border enforcement.

All of this is creating a depressing mix for tourism.

Domestic travelers are spending less, international travelers are staying away, and the result is a real shift in tourism behavior and dollars.

Honestly, my prediction is this won't be temporary.

It feels like a long-term change in spending habits.

This will have real-world consequences on everything from airlines and cruise cruise ships to mom-and-pop ice cream shops on the boardwalk.

All right, tariffs.

If you're eyeing a big purchase in the next year, you're probably wondering how the heck tariffs are going to play into it.

You're not alone.

Tariffs have been the background music of the economy since April, sometimes blasting, sometimes barely audible, but always there.

What is actually unhinged is how uncertain the situation still is.

Let's rewind.

President Trump used the International Emergency Economic Powers Act to create the tariffs.

Normally, tariffs fall under Congress's powers, not the president's.

To get around that, President Trump leaned on his emergency loophole and used it aggressively.

We know the rest of the story.

Tariffs as high as 50% on Brazil and India.

China got served a whopping 145%.

Pretty much every trading partner got hit with something except places like North Korea, Cuba, and Russia, where trade was off the table anyway.

By the end of August, American businesses had shelled out over $210 billion in tariffs.

Then, plot twist, a federal appeals court recently declared the tariffs illegal.

That ruling kicks in unless the Supreme Court intervenes.

The Trump administration has already filed an appeal, hoping for a fast-track review.

So right now, the whole situation is very TBD.

One wildcard here, if the tariffs are struck down, the federal government will have to refund businesses.

That would mean a massive payout, and not necessarily the good kind.

And with the fiscal year ending September 30th, without a full budget approved, there is a real risk of a government shutdown colliding with a huge refund bill, which is a bit of a perfect storm, to be honest.

Finally, let's talk about housing because the housing market is still, frankly, a hot mess.

Sellers now outnumber buyers, but prices are not budging.

In places like Florida, homes are sitting on the market for 90 days or more.

That would have been unimaginable even a year ago.

But it's not all the same.

Some regions like the Northeast and the Midwest are still red hot.

Overall, though, 31 of the top 50 metro areas have flipped from a seller's market to a buyer's market.

Yet even with that shift, homes remain stubbornly unaffordable for so many.

The Trump administration is reportedly drafting an emergency declaration focused on lowering housing prices.

The biggest issue right now is a lack of affordable housing.

Policy changes that make construction easier or incentivize builders could actually move the needle.

If handled correctly, this declaration could actually bring real relief.

And we need it desperately.

Home affordability is at its worst point in 40 years.

Nearly half of renters are spending more than 30% of their budget on rent.

So if you feel insecure about your housing situation, I am so sorry, but you are also not alone.

It is not sustainable.

Something has to give here.

The big question is, will the federal government actually get its act together and help solve this?

For today's tip, you can take straight to the bank.

Use a VPN to change your location when booking flights or hotels.

A VPN is usually an app or browser extension that you can install, and it runs in the background to reroute your internet connection through another country.

Prices often vary depending on where the website thinks you're browsing from.

For example, booking a flight from a developing country's IP address can sometimes cut the price by up to 40%.

It works because airlines and booking sites use dynamic pricing based on purchasing power in different different regions.

Just make sure you clear your cookies and use an incognito window so they don't catch on.

Money Rehab is a production of Money News Network.

I'm your host, Nicole Lapin.

Money Rehab's executive producer is Morgan Lavoie.

Our researcher is Emily Holmes.

Do you need some money rehab?

And let's be honest, we all do.

So email us your money questions, moneyrehab at moneynewsnetwork.com to potentially have your questions answered on the show or even have a one-on-one intervention with me.

And follow us on Instagram at Money News and TikTok at Money News Network for exclusive video content.

And lastly, thank you.

No, seriously, thank you.

Thank you for listening and for investing in yourself, which is the most important investment you can make.