Undocumented Immigration And Its Link To The Housing Market

February 17, 2016

Between the Republican and Democratic presidential debates, stories on the news, and that person in the grocery line who wants to have an all too public debate on the issue, undocumented immigration has been discussed ad nauseam. Here is an aspect of it you might not have heard, though; the slowdown in undocumented U.S. workers may result in higher home prices.

More than 50 percent of economist and research experts who responded to a Zillow survey said a continuation in the decline of undocumented workers would cause labor costs to go up, which, in turn, will cause home prices to go up as well.

Another outcome this slowdown in undocumented immigration could have is more luxury home creation. 40 percent of the experts surveyed said higher labor costs would cause builders to focus on luxury construction with a higher profit margin. Another 43 percent said the decline in the undocumented immigrant population would lead to more construction jobs for U.S. and foreign-born workers.

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