Posted on 08/16/2019 11:54:27 AM PDT by Thalean
A number of academic studies demonstrate that immigration indeed raises housing prices and rents. Libertad Gonzalez and Francesc Ortega in a 2013 study found that immigration into Spain caused 52 percent of the overall increase in Spain’s real estate market.
Another paper published in 2012 by Canadian researchers Ather Akbari and Yigit Aydede found that immigration raised housing and rent prices in Vancouver, although the effect was not large. The authors postulated that the unexpected minor impact may be due to native residents leaving neighborhoods with high immigrant rates—“white flight.”
Abeba Mussa, Uwaoma G. Nwaogub, and Susan Pozoc tested this theory in a 2017 paper. Their findings were startling: for every 1 percent that immigration increased the population in a metropolitan statistical area (“MSA”), rents in that area increased by 0.8 percent. Additionally, domestic out-migration caused rents in neighboring MSAs to increase by 1.6 percent on average.
This effect was magnified when looking at housing prices: housing prices increased by 0.8 percent for every 1 percent immigrant-driven rise in population in the destination MSA, but by a whopping 9.6 percent in surrounding MSAs. In this way, immigration not only raised rents and house prices, it primarily raised them for native-born Americans!
(Excerpt) Read more at amgreatness.com ...
This is why the US will not deport the 30 million illegals. It would collapse the real estate market - particularly in states like California.
ping
So, third world illiterate homeless people with no marketable skills upon arrival who’s culture cannot design a functional plumbing system capable of flushing toilet paper, are infinitely more integral to the proper functioning of civilization than moronials
I’d double or triple that estimate of 20 million illegal aliens. Not all cross the border illegally. An increasing number overstay visas.
This is why the US will not deport the 30 million illegals. It would collapse the real estate market - particularly in states like California.
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You say that as though that’s a bad thing.
Personally, I think it’s great... But some high powered investors and Mortgage Banks might not agree. It will be the real estate crash of 2008 all over again.
Per Bear Stearns study published in 2005, the number then was ~20 million and 3 million more were being added each year. The study was conducted to identify untapped markets for their financial services.
http://web.archive.org/web/20090318213140/http://www.bearstearns.com/bscportal/pdfs/underground.pdf
You have the beginning of a good rant there. You should expand it. :-)
I’m familiar with the Vancouver area rental situation and I would disagree with the assertions made in that case.
The main reason why rentals are costly in that market is that the bottom two thirds of the socio-economic demographic are priced out of the ownership market and have no other option than rental. With the supply of new rental units restricted by the better profit opportunities available in condominium and town house (ownership) projects on the same land, the rental rates can be kept high enough to induce anyone who doesn’t have to live in the region to move away to somewhere more affordable. That means mainly retiring seniors who were renting and working, and students or young adults with less than average paying jobs who can find work out of town. So those two components are moving away. Immigrants are less likely to want to settle out of the large city for two reasons, less social support and fewer jobs they can easily get. But I didn’t see much evidence of “white flight” because of immigrant aversion, it was more of a white flight because of wanting to have more disposable income.
In our own case, we are now paying half the rent in a small town in BC than we paid in metro Vancouver, while our pension income is 80% of the former employment income.
With other costs only marginally different, you can see that the math is compelling, why stay in the larger city when you can increase your disposable income even with a lower gross income? There are no downsides at all other than a few minor issues like less comprehensive health care within an hour commute or former social ties lost.
Not sure how this would transfer to the U.S. situation, but it’s not immigrants driving up rental prices in Vancouver, except indirectly, because perhaps you could argue that offshore investors are driving up the value of the housing market (ownership not rental). Most of them don’t actually become immigrants or they send one family member to squat in the investment until they decide it’s time to make the move (many are wealthy Chinese who want an out in case China totally collapses).
Things like Muslim immigration are almost non-factors in British Columbia. There has been some but social tensions are absent because we already had quite a mixture of Asian immigrant communities and there is a certain amount of live and let live as the general rule, plus by luck perhaps more than design, we have only attracted Muslims from higher functioning countries like Kuwait and Egypt and not that many from Syria and Libya, so they tend to blend in. Also most are wealthy enough to own rather than rent. The same can be said for the Indo-Canadian community, most immigrants that I met in rental settings were from the Balkans, Vancouver has a fairly sizeable Serbo-Croatian community. Chinese Canadians are very ownership oriented and will take extraordinary measures to get away from rental as quickly as possible.
Most of the rental market in Vancouver is for the children of long-time white residents of the region who are priced out of the ownership market and have too long to wait to inherit their parents’ homes (where some are sort of trapped in by high taxes despite full equity or near the end of paying down a much smaller mortgage than they can refinance). It’s a strange market in some ways, probably similar to some other “world class” cities around the Pacific rim like Sydney, Honolulu or maybe Seattle, San Fran or San Jose.
During the Trump roundup this should be done.Check the precinct list of registered voters where these people resided. If they’re on that list, Federal crime, charge them and those that enabled them to vote knowing they were illegals. If ebough noise is made it should discourage illegals still here from voting. Besides determining how they got a drivers license show how much it’s costing taxpayers of that state. Also point out increased premiums on drivers insurance rates. As well as demonstrate how ,local ,state and federal taxes are increased by divertting edicational, medical, food and housing allocations to meet illegal’s needs at citizen expence
“Most of the rental market in Vancouver is for the children of long-time white residents of the region who are priced out of the ownership market and have too long to wait to inherit their parents’ homes (where some are sort of trapped in by high taxes despite full equity or near the end of paying down a much smaller mortgage than they can refinance). It’s a strange market in some ways, probably similar to some other “world class” cities around the Pacific rim like Sydney, Honolulu or maybe Seattle, San Fran or San Jose.”
We are seeing a similar thing in the Gay Frisco area.
One son and his wife and new baby bought a new home in the outer East Bay area. His friends decided to rent in our area and buy later. Only one has bought in their home area, 2 married medical professionals. Others are still renting 20 years later.
Our contractor is in the same fix. He and his wife are renting.
This groups’s parents, (all of us) are living past our 70’s into our 80’s. Many of us have opted for reverse mortgages.
We are hearing of couples our son’s age, moving back in with their parents while their kids are in college or finishing college.
One of the hottest new homes being built are the “Granny or Mother-in-law” homes. Smaller one or two br homes with small kitchens on the ‘kid’s properties.
BS. Immigration isn’t the problem.
Illegal entry is the problem.
How can immigrants who come here with nothing pay for rent and buy houses? I’ need answers.
There are 4 or 5 families living together that is how they do it!!!
Perhaps you have forgotten the primary industry of our president and his SIL?
Do you really not know?
Welfare, section 8, and multiple families per unit.
The difference is between legal and illegal. Illegals, as a rule live in apartments, several families per apartment.
It will be the real estate crash of 2008 all over again.
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