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Old 02-16-2011, 09:32 PM
 
Location: Calgary, AB
482 posts, read 2,116,900 times
Reputation: 329

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Just wondering how people in the US would feel if the government increased immigration into the US to end the housing crisis?

The way it would work is that immigrants would move into underused (empty?) homes and eliminate the foreclosure lag in the housing market. This would then stabilize the housing market and thus build confidence in growing the economy.

For cities such as Detroit, folks would move into empty homes and help rebuild the communities.

Immigrants could even pay a "visa fee" to move so that only folks with capital could move in...

Would this work? I know that Canada increased immigration in the 90's after a massive recession and housing bust to rebuild the economy and it worked...

Is the political culture open to this or is the US in a xenophobic phase currently?
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Old 02-16-2011, 10:18 PM
 
Location: Jersey
2,165 posts, read 3,242,137 times
Reputation: 1689
It won't solve anything atm. Even if you ignore the fact that unemployment is officially at 9% and the fact that these people are going to need employment to make your "plan" work, it takes several years to save enough money for the down payment on a house.

What I am in favor of is seeing the 7% visa cap per country removed. We're possibly "losing" hundreds of thousands of talented, resourceful, and/or entrepreunerial individuals because of these caps.
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Old 02-16-2011, 10:42 PM
 
Location: Lethbridge, AB
1,132 posts, read 1,604,010 times
Reputation: 974
Quote:
Originally Posted by ajau View Post
Just wondering how people in the US would feel if the government increased immigration into the US to end the housing crisis?

The way it would work is that immigrants would move into underused (empty?) homes and eliminate the foreclosure lag in the housing market. This would then stabilize the housing market and thus build confidence in growing the economy.

For cities such as Detroit, folks would move into empty homes and help rebuild the communities.

Immigrants could even pay a "visa fee" to move so that only folks with capital could move in...

Would this work? I know that Canada increased immigration in the 90's after a massive recession and housing bust to rebuild the economy and it worked...

Is the political culture open to this or is the US in a xenophobic phase currently?

Where would these new immigrants work? Jobs are scarce enough in a recession, particularily in areas where there's abandoned houses. That's why nobody lives there in the first place.

If I remember correctly, immigration climbed during the early years of the 90's recession, peaking in '93, I think. Canada only began to climb out of it's tailspin in 95-96, when immigration was declining.

I think much more of Canada's recovery (and curent stability) has to do with it's fiscal responsibility, or lack thereof. the US had begun to recover as early as '92, but we were unable to take advantage. Our gov't finances were, frankly, in shambles at that point. Once the gov't began to view fiscal responsibility and a balanced budget as key policy goals, we began to recover. I'd venture a guess that a stable fiscal policy began to attract investment again, which spurred growth.
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Old 02-16-2011, 10:45 PM
 
16,438 posts, read 18,538,758 times
Reputation: 9490
They would just join the tens of thousands that already stopped paying the mortgage and are getting free rent.
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Old 02-17-2011, 08:25 AM
 
Location: Cumberland Co., TN
20,065 posts, read 20,554,090 times
Reputation: 20406
The housing crisis was the result of banks loaning money to people they knew could not make their mortgage payments coupled with high unemployment. What makes you believe new immigrants will find jobs that would enable them to pay these mortgages when Americans citizens cant.
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Old 02-17-2011, 05:35 PM
 
Location: Not where you ever lived
11,544 posts, read 25,118,847 times
Reputation: 6189
Even if they moved into enpty housing so utilites were on which would preserve the value of the houe and possibly pervent mold from forming, it would not stop the foreclosure or sale. Unless the immigrant bought the house or it was sold on a Contrat For Sale by the owner. And there is still the issue of income.
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Old 02-17-2011, 06:36 PM
 
Location: John & Ken-ville
13,692 posts, read 15,136,165 times
Reputation: 9493
Quote:
Originally Posted by ajau View Post
Just wondering how people in the US would feel if the government increased immigration into the US to end the housing crisis?

The way it would work is that immigrants would move into underused (empty?) homes and eliminate the foreclosure lag in the housing market. This would then stabilize the housing market and thus build confidence in growing the economy.

For cities such as Detroit, folks would move into empty homes and help rebuild the communities.

Immigrants could even pay a "visa fee" to move so that only folks with capital could move in...

Would this work? I know that Canada increased immigration in the 90's after a massive recession and housing bust to rebuild the economy and it worked...

Is the political culture open to this or is the US in a xenophobic phase currently?
You realize that part of the problem we have in the USA is from "immigrants" having loans which they defaulted on to purchase homes.

MALKIN: Illegal immigrant factor - Washington Times

http://www.alipac.us/article3635.html

There are plenty of Americans who are here who want to own a home and cannot afford to as well as Americans who can afford to own a home but don't, why would we need to import immigrants for that?
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Old 02-17-2011, 06:42 PM
 
2,652 posts, read 7,647,368 times
Reputation: 1874
Increasing the level of immigration would make a bad situation worse. First, where would the credit to get a loan come from? It would take years for them to build up enough credit to purchase. Second, where are the jobs to support extra population? The defaults, for the most part, aren't because people just up and decided to stop paying. They lost their jobs, therefore couldn't pay.

Bring back jobs and the problem will be solved (somewhat).
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Old 02-17-2011, 10:24 PM
 
48,519 posts, read 81,147,477 times
Reputation: 17979
Just how are they goig to get financing on thsoe home not for rent which is the majority?
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Old 02-17-2011, 11:01 PM
 
2,060 posts, read 4,916,982 times
Reputation: 1652
I would assume that they would have to have the funds already available to purchase the home. There are thousands of people out there with that kind of cash who want to move here but who don't have a valid way to do so. In any case it won't happen, so it's hardly worth arguing over.
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