Comments on: Can the new immigration law affect the rental market? http://www.aptbldgtrader.com/blog/2007/08/31/can-the-new-immigration-law-affect-the-rental-market/ Apartment Investors Blog, Putting You In Touch With The Pulse of the Commercial Real Estate Market. Wed, 07 Jan 2009 09:32:31 +0000 http://wordpress.org/?v=2.1.3 By: Emmanuel Cervantes http://www.aptbldgtrader.com/blog/2007/08/31/can-the-new-immigration-law-affect-the-rental-market/#comment-19 Emmanuel Cervantes Wed, 03 Oct 2007 17:12:07 +0000 http://www.aptbldgtrader.com/blog/2007/08/31/can-the-new-immigration-law-affect-the-rental-market/#comment-19 If government agencies truly target employers of undocumented workers as aggressively as they claim, i strongly see this affecting the multi-family market. With an estimated 2.5 million illegal immigrants living in California, how can these numbers not affect us. These 2.5 million people require housing and each month these individuals contribute "X" amount of dollars toward rent. If suddenly these individuals find themselves out of work and unable to pay rent, a multi-family owner somewhere in California is going to be affected! If you are a landlord of a building in an area where there is a large community of illegal immigrants than the odds are you are REALLY going to be affected. Our Senator Dianne Feinstein claims that it will be a "catastrophe" to the $32-Billion agriculture industry, yet that is not the only sector in jeopardy! The service sectors will be severly affected too. The list of jobs that will feel the crunch is long: hotels, restaurants, cleaning services, construction, laborers and nursing homes (i'll stop there). Addressing Senator Feinstein's comment about this being a catastrophe to the $32-Billion agriculture industry i would like to paint a picture: 1) Thousands of undocumented workers are fired from their jobs. California farmers find it difficult to replace these workers with DOCUMENTED workers. Suddenly there is a shortage of help to work the fields and pick the crop. 2)Produce becomes rotten from the inability of Farms to process the large quantity, due to a shortage of workers. The law of scarcity takes effect and therefore prices on produce rise. 3) Americans are now forced to allocate a larger amount of funds to food rather than shelter. Thus, lowering the amount of money they are able to allocate for rent and affecting the amount of rent landlords can obtain for their rental unit. Now we are in a situation where every landowner is affected. The entire rental market is affected! This is a dooms day scenario, yet a serious possiblity if illegal immigrants are suddenly forced out of the workplace and unable to generate an income. 2.5 Million illegal immigrants in the state of California alone, add that number to the number of illegal immigrants living in the other 50 states. I agree with our Senator Dianne Feinstein, this could possibly be a catastrophe. Only time will tell if the government is truly ready to approach this situation with the determination and manpower that will be required to pursue this new law. If it is ready, it's said that we could possibly feel the affects within six months. What are your views on this? Please share your thoughts and comments. We are eager to hear what you have to say! If government agencies truly target employers of undocumented workers as aggressively as they claim, i strongly see this affecting the multi-family market. With an estimated 2.5 million illegal immigrants living in California, how can these numbers not affect us.

These 2.5 million people require housing and each month these individuals contribute “X” amount of dollars toward rent. If suddenly these individuals find themselves out of work and unable to pay rent, a multi-family owner somewhere in California is going to be affected! If you are a landlord of a building in an area where there is a large community of illegal immigrants than the odds are you are REALLY going to be affected.

Our Senator Dianne Feinstein claims that it will be a “catastrophe” to the $32-Billion agriculture industry, yet that is not the only sector in jeopardy! The service sectors will be severly affected too. The list of jobs that will feel the crunch is long: hotels, restaurants, cleaning services, construction, laborers and nursing homes (i’ll stop there).

Addressing Senator Feinstein’s comment about this being a catastrophe to the $32-Billion agriculture industry i would like to paint a picture:

1) Thousands of undocumented workers are fired from their jobs. California farmers find it difficult to replace these workers with DOCUMENTED workers. Suddenly there is a shortage of help to work the fields and pick the crop.
2)Produce becomes rotten from the inability of Farms to process the large quantity, due to a shortage of workers. The law of scarcity takes effect and therefore prices on produce rise.
3) Americans are now forced to allocate a larger amount of funds to food rather than shelter. Thus, lowering the amount of money they are able to allocate for rent and affecting the amount of rent landlords can obtain for their rental unit.

Now we are in a situation where every landowner is affected. The entire rental market is affected! This is a dooms day scenario, yet a serious possiblity if illegal immigrants are suddenly forced out of the workplace and unable to generate an income. 2.5 Million illegal immigrants in the state of California alone, add that number to the number of illegal immigrants living in the other 50 states. I agree with our Senator Dianne Feinstein, this could possibly be a catastrophe.

Only time will tell if the government is truly ready to approach this situation with the determination and manpower that will be required to pursue this new law. If it is ready, it’s said that we could possibly feel the affects within six months.

What are your views on this? Please share your thoughts and comments. We are eager to hear what you have to say!

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