Could Obama’s Immigration Plan Stimulate the Housing Market?
Immigration reform has been a big deal for the Obama administration recently, with ambitious new legislation being put into place to protect many undocumented immigrants from deportation. Though there remains some controversy around the president’s plan, the housing industry could likely look forward to a healthy and robust future if Obama gets his way.
The fact is that Hispanics, which represent the greatest portion of the immigrants who can look forward to benefit from the new legislation, also represent a significant part of the housing market’s future. At present, one out of every four Millennials is of Hispanic origin. As the largely white Boomer generation settles into their permanent homes, it is this younger and larger generation that is going to be driving most new home purchases throughout the coming years.
Meanwhile, statistics show that Hispanics are trending towards homeownership more rapidly than other racial groups. Hispanics are expected to be the driving force behind 180,000 to 220,000 new homeowners every year up to 2020, and then even more into the following decade. This could account for over 55.5 percent of new homeowners through the end of this decade.
It is therefore that a revamped immigration system designed to accommodate reasonable and hard-working immigrants could very well translate into a significant boon for the country as a whole. By allowing more incoming Hispanics to qualify for mortgage loans and achieve their dreams of homeownership, we can look forward to a thriving real estate market well into the future.
