Trump’s immigration plans could hit housing market hard

Deportations and uncertainty reduce demand for homes

TRD MIAMI /
Feb.February 22, 2017 12:45 PM

From the New York website: The Trump administration’s plans to deport more undocumented immigrants and restrict legal immigration could be bad news for the U.S. housing market.

“If Trump gets the immigration plan he wants, the housing market will get hit harder than any other,” Alex Nowrasteh of libertarian think tank Cato Institute told Bloomberg. If “millions of people get deported and more people don’t come in to take their place, then you’ll have downward pressure on home prices, especially in urban areas.”

It’s not just that deporting U.S. residents reduces demand for housing — even immigrants who don’t have to fear immediate deportation are growing more reluctant to invest in homes for fear over their future status. One Silicon Valley software engineer on a temporary work visa told Bloomberg that he is holding off on buying a home because of Trump. “We were about to make some offers,” he said. “But we don’t know what news will come out and how that will affect our jobs.”

Immigrants’ reluctance to invest in homes matters because they have emerged as a key source of demand for homes in recent decades. While the overall homeownership rate has stagnated since 1995, the homeownership rate among immigrants increased by 2.4 percentage points. In other words: immigrants made up for falling demand from native-born Americans.

University of Washington economist Jacob Vigdor reckons that the country’s 40 million immigrants account for $3.7 trillion in property wealth. [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios
Donald Trump and the Trump National Doral golf course (Getty, Trump Hotels)

In the rough: Trump’s golf clubs and resorts have lost $315M

In the rough: Trump’s golf clubs and resorts have lost $315M
Donald Trump (Credit: Win McNamee/Getty Images)

Newly uncovered trademarks show Trump’s Cuba real estate aspirations

Newly uncovered trademarks show Trump’s Cuba real estate aspirations
212 Spyglass Lane & Carlos Gavidia (Realtor, Instagram/Carlos_E_Gavidia)

“Trumptilla” organizer sells waterfront Jupiter home for $6M

“Trumptilla” organizer sells waterfront Jupiter home for $6M
President Trump and Mar-a-Lago Club (Credit: Joe Raedle/Getty Images, and Pete Marovich/Getty Images)

Trump faces $1.5M in Palm Beach County property taxes

Trump faces $1.5M in Palm Beach County property taxes
Donald Trump with Trump International Golf Club (Credit: Isaac Brekken/Getty Images and Palm Beach Post)

Trump golf club in West Palm seeks rent relief, citing shutdowns

Trump golf club in West Palm seeks rent relief, citing shutdowns
Donald Trump and Mar-a-Lago Club (Credit: MANDEL NGAN/AFP via Getty Images, and iStock)

Trump’s Mar-a-Lago furloughs 153 employees

Trump’s Mar-a-Lago furloughs 153 employees
Gables Town Colony apartment complex, Sue Ansel of Gables Residential

Gables Residential scores $85M loan for Boca Raton apartment complex

Gables Residential scores $85M loan for Boca Raton apartment complex
Broadstone City Center with Alliance Residential’s Bruce Ward and Nuveen CEO Jose Minaya

Nuveen pays $103M for West Palm luxury apartments

Nuveen pays $103M for West Palm luxury apartments
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...