Lower Immigration Numbers Hurting Housing Market

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Lower Immigration Numbers Hurting Housing Market

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Lower rates of immigration to the United States are a major contributing factor to the sluggish housing market.  The troubles of the housing market have long been blamed on excess inventory, but Fortune reports that a a drop in immigration has demonstrably hurt demand.  According to the Fortune article, households headed by those foreign born under the age of 35 dropped by 338,000 in 2009.  The article concludes that the housing market cannot become robust again until the unemployment numbers drop, which will again attract higher levels of immigrants and increase demand.  Of course, this assumes that we don’t enact draconian immigration policies which impair the free market and depress demand.

To read the article in Fortune, click here.

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