Jones Lang LaSalle

How Does Illegal Immigration Impact Real Estate?

"Hard Liners" vs. "Soft Liners"... "Any serious attempt at reform needs to take account of facts regarding illegal immigrants that are often given a back seat to ideology by partisans on either side of the debate."

That's Stephen Haber commenting in yesterday's Wall Street Journal on the immigration debate as framed by "hard liners" (deportation) versus "soft liners" (citizenship). ("Mexican Wave," May 3, 2006)

So what are the real estate "facts" on illegal immigration? In a study released in 2003, the Immigration and Naturalization Service (INS) estimated that 7 million "unauthorized immigrants" resided in the U.S. as of January 2000. (Of these, 2.2 million were in California.) Currently you hear estimates of 11 to 12 million as the total number.

As President Bush says, the deportation of all illegal immigrants is not going to happen. But what if the U.S. deported ten percent of the total? (I'm NOT advocating this!) That's still 1.1-1.2 million people.

Most illegal immigrants must rent property. But they must own homes also. How would that affect apartment rentals or home prices? And from an employment perspective, what percentage of illegal immigrants work in real estate as janitors, landscapers, guards, etc.? Would their absence significantly reduce service levels? Would their replacements drive up operating costs?

Search me. Has anybody done research on these topics? What are the conclusions? What are the facts?

-- Peter Pike