The federal ban will have far-reaching consequences for real estate, retail, and telco
Banning a social media app may seem like a trivial matter compared to the country’s larger challenges of home affordability, inflation, and economic uncertainty, but a ban on the most popular social media platform frequented by 170 million users will be anything but trivial.
TikTok has become more than just entertainment—it’s an influential tool for discovery, customer connection, retail, real estate, and marketing.
Removing TikTok means losing a resource that has made buying a home or finding a local business an accessible and engaging process. It also means losing digital communities built around similar tastes and spheres of influence.
Without TikTok, the narrative around real estate and retail could shift back to more traditional gatekeepers, leaving everyday consumers with fewer opportunities to participate and shape their environment.
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Why Is TikTok Getting Banned in the U.S.?
The U.S. government’s interest in banning TikTok is premised on concerns that the app, owned by the Chinese company ByteDance, could compromise national security and data privacy. Although there have been multiple challenges to the pending ban, the implementation date remains on its original schedule, with the federal government planning to ban the app beginning on Jan. 19, 2025.
When is TikTok getting banned?
Jan. 19, 2025
While the mid-January ban is facing eleventh-hour challenges, including a request by TikTok to the U.S. Supreme Court to prevent the ban, so far any requests for a stay on the ruling have been denied. Should the full ban go into effect, about 170 million Americans will be affected, including many who own small businesses and work in real estate.
The TikTok debate embodies the tension between technology innovation and data security. Questions surrounding data privacy and national security can be at odds with the innovative platforms that are integral to our hyper-connected world. While there is no question that sensitive data must be protected, the reality is that much of our lives are lived online, which means that social media platforms like TikTok have become integral business tools that cannot be ignored.
If TikTok disappears, so too does access to the platform’s data-driven connections. Homebuyers may no longer receive tailored property suggestions that align with their budget and preferences. Local retailers might lose the ability to target ads to prospective customers based on proximity or interests. And many other businesses may also lose essential insights into which neighborhoods are up-and-coming, thus limiting investment opportunities.
How a Federal TikTok Ban Could Reshape the Homebuying Industry and Retail
TikTok isn’t just about creating content—it’s about creating access. The popular platform has empowered buyers with transparent, relatable insights into what is often an intimidating process.
However, it’s not just homebuyers who would feel the loss of TikTok. Local businesses —restaurants, boutiques, and service providers — have used the platform to carve out identities and connect with customers.
So, how does a TikTok ban affect businesses?
Building buzz is a critical component of what makes TikTok marketing so powerful; the platform can build reality before it actually takes shape in the world. Just look at newly developed neighborhoods. Retailers often struggle to gain visibility in the early stages of a neighborhood’s growth. Similarly, real estate agents can have more difficulty selling a home that is yet to be built. Through TikTok, a neighborhood can be marketed to feel vibrant, promising, and full of life to build a vision that people can buy into — literally. Without it, neighborhood growth and retail investments could see a decline.
A New Era of Homebuying Without TikTok
TikTok for real estate professionals expanded networks enormously, democratizing information through short, digestible videos that let aspiring homeowners tour properties, learn about financing, and even uncover hidden gems in emerging neighborhoods — all without leaving their couch.
If TikTok disappears, it will eliminate access to a go-to resource for homebuying education. For quick tips about mortgages, home inspections, and market trends — information that is crucial for first-time buyers navigating the complex real estate landscape — buyers will be forced to rely on other channels, many of which may leave digital-native audiences feeling disconnected from the overall process.
Without an encyclopedic knowledge of homebuying at their fingertips, property professionals could suddenly find themselves working with a lot more clients who may not fully understand the buying process or market conditions. Agents might find themselves spending more time educating clients about fundamental concepts rather than focusing on closing deals.
And that’s not even mentioning what a ban would do to the home selection process. Homebuyers without TikTok might no longer have tailored, budget-appropriate property suggestions at their fingertips. To fill the void, homebuyers may have to rely on more traditional marketing platforms that aren’t known for democratized content and widespread reach, and this shift could widen the gap between savvy homebuyers and those left navigating outdated systems.
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The immediacy and sense of community fostered by TikTok will be hard to replicate elsewhere. As a result, agents might lose valuable touchpoints with their audience, leading to decreased client retention and referrals, as well as additional barriers in a process that can already be cumbersome to navigate.
Telecommunications: A Silent Victim of the Ban
A large part of any community or neighborhood is unseen, but it doesn’t mean it’s not essential. From fiberoptic cables to cellphone towers, telecommunications infrastructure is an integral component of transforming a neighborhood into a desirable destination.
Should the absence of TikTok slow the cycle of homebuying, there will be a domino effect. Longer buying cycles could mean fewer homes sold. Fewer homes sold means neighborhoods will be built more slowly. Slower expansion means less need for additional telecommunications infrastructure. But it won’t completely negate the need for telco investment.
This is why knowing exactly where development is happening will remain crucial. While tracking trends on TikTok may no longer be available after Jan 19, pinpointing areas primed for development with geolocation will remain another option.
Banning TikTok will have far-reaching economic consequences. Without nuanced, data-driven connection at everyone’s fingertips, finding where and when to make investments will require adaptation. Although alternative platforms will appear in the absence of this popular platform, replicating TikTok’s unique combination of reach, engagement, and cultural relevance will take time.
Still, at the intersection of technology and business, data will remain powerful. Access to data and the consumer connections it creates will continue to drive innovation.
As policymakers debate TikTok’s future, they should also consider the unintended consequences for consumers, businesses, and communities. Home purchases, local businesses, and neighborhood investment are all part of a larger ecosystem — and TikTok has become an unexpected but vital part of that equation. Data privacy will remain a critical issue going forward, and the TikTok debate will serve as a reminder that balancing security with innovation is essential for sustainably building homes, neighborhoods, and futures.
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Written by: Data Team