Immigration Policy Could Negatively Impact House Prices

If stricter immigration policies are implemented, many homeowners and potential buyers may be affected.

Bloomberg reports as threats of deportations loom, lenders and foreign-born buyers are becoming more cautious about buying a home.

A University of Washington economist estimated that the nation’s 40 million immigrants add $3.7 trillion to total housing wealth.

If financing dries up and borrowers lose faith, it will mark a major reversal in the market. New arrivals are expected to account for more than a third of growth of homeowners this decade. … While the U.S. homeownership rate in 2015 was the same as it was in 1994 (66 percent) it has risen 2.4 percentage points for the foreign-born population, to more than half.

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