Why more mass deportations would be bad news for the housing market

Right around the time foreclosures were starting to pile up in the housing crash, on their way to affecting nearly one in five homeowning Hispanic households, the very same communities took a second blow.

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The federal government’s Immigration and Customs Enforcement agency, in partnership with local law enforcement, was increasing deportations of undocumented immigrants: more than three million in all between 2005 and 2013. About 85 percent of them were working Latin American men.

New research now suggests that the deportations helped exacerbate foreclosures. Counties that collaborated with ICE in what became a large-scale deportation sweep experienced a surge in foreclosures of homes owned by Hispanics, according to a study by Jacob Rugh and Matthew Hall published Thursday in the journal Sociological Science. They argue that the roundups help explain why Hispanics faced the highest foreclosure rates during the housing crash — even among households with legal residents and American citizens.

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