Immigration reform has been a hot topic over the last few years and the issue is currently being debated in Congress. The most contentious issue when it comes to immigration reform is whether to allow undocumented immigrants a pathway to full citizenship. Immigration law firms around the nation have been debating this issue for some time and there are many pros and cons to each side of the debate. However, one benefit that many have not considered is the effect that immigration reform will have on the housing market.
Experts estimate that there are more than eleven million undocumented immigrants in the United States. If Congress decides to allow a pathway to citizenship for undocumented immigrants, it is estimated that at least six million will apply for this citizenship. These are people that are currently living in the shadows, largely not paying taxes and most of them are not homeowners, but immigration reform could change all of that very quickly.
If there are suddenly six million new citizens, as is expected if this measure passes through Congress, then that could mean a big boon to the housing industry. In fact, it is expected that there will be as many as three million new homebuyers if immigration reform is passed. This could mean as much as 500 billion dollars in new mortgages over the next ten years. While real estate agents might be licking their chops at the thought of all of these new customers, not everyone will get in on the action.
This is because most of the benefit will go to states that have a large Hispanic population. With as much as 60% of the current undocumented immigrant population of the United States thought to be Hispanic, states with large Hispanic populations are expected to see the biggest influx of new mortgage dollars. States like California, Arizona and Nevada expect to see real estate explosions if immigration reform is passed.
This is not just good news for real estate agents in the Southwest, as this injection of money into the economy will help a number of different businesses and areas. These states will generate billions in property taxes from these new mortgages and services likeimmigration law firms, restaurants, schools and other industries also expect to see increased revenue from immigration reform.
As support for immigration reform and a pathway to citizenship grows, supporters are using logic and reason to make their points. Instead of undocumented immigrants having access to social benefits that they are not paying into, they will suddenly be paying the income, property and social security taxes that they are not currently paying. This not only alleviates some of the financial burden from the state, but actually increases revenue.
There are some that feel immigration reform is just a political issue, as six million new citizens also means six million new voters. Although it is difficult to do political polling among undocumented immigrants, it only stands to reason that their votes will lean towards the party that helped them find a path to citizenship. This is why both parties want to be sure that it is their plan that is adopted, so that they can take credit and claim some of these new votes.
Immigration reform is certainly a heated issue, as there are plenty of solid arguments to be made on both sides. However, one benefit that many have not considered is the increased home sales and revenue for states with a lot of undocumented immigrants. Those worried about the cost of allowing undocumented immigrants to become citizens also have to weigh the political and financial benefits of immigration reform.
Author Bio- Aaron is an immigration consultant in Chicago. He is passionate about immigration law in the United States.
