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How Does Immigration Impact Home Prices?

Analysis by Clever found that home values increased $0.14 for each authorized or unauthorized immigrant in a metro between 2007 and 2016.

The report states that home values increased one dollar for each additional seven unauthorized immigrants (per 100,000 residents). Clever states that if a metro has a median-home price of $150,000, an additional 100,000 immigrants could increase home values 9% to $164,000. 

“The relationship between the immigrant population and home values is a complicated one and a reason for the relationship is difficult to pin down. Additional immigrants may simply increase the demand for housing, which in turn increases prices,” the report states. “Foreign-born citizens are just as likely to own a home as native citizens and many (35%) non-citizen immigrant residents own homes in the U.S. Therefore, it's certainly reasonable to assume that as more immigrants enter an area, the prices increase as a result of demand.”

There are three categories of immigrants: Those who were born in another country (foreign born) but have since become U.S. citizens, authorized residents, and unauthorized residents. 

Authorized residents are foreign-born but are in the U.S. legally as permanent residents, asylum seekers, or temporary visa holder. Unauthorized residents are those who do not have appropriate documentation. 

The U.S. Census Bureau reported that immigrants made up 12.5% of the U.S. population in 2007, but rose to 15% of the population in 2016. Although the immigrant population has increased, the unauthorized population has fallen from 4% in 2007 to 3% in 2016, and the U.S. has seen drops in crime rates, lower unemployment rates, and GDP growth. 

A report by the U.S. Census Bureau and the National Association of Home Builders from September found that minority homeownership fell to 46.9% in Q2 2019. 

The Hispanic homeownership rate was flat 46.6%. The homeownership rate for African-American-non-hispanics fell to 42.6% in Q2 2019 from 41.3% during the same period last year.

The homeownership rate among white, non-Hispanics, increased slightly to 73.1% in Q2 2019 from 72.9% last year.

About Author: Mike Albanese

A graduate of the University of Alabama, Mike Albanese has worked for news publications since 2011 in Texas and Colorado. He has built a portfolio of more than 1,000 articles, covering city government, police and crime, business, sports, and is experienced in crafting engaging features and enterprise pieces. He spent time as the sports editor for the "Pilot Point Post-Signal," and has covered the DFW Metroplex for several years. He has also assisted with sports coverage and editing duties with the "Dallas Morning News" and "Denton Record-Chronicle" over the past several years.
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