A recent Gallup poll—taken weeks after Title 42 restrictions on immigration were lifted (May 11)—shows public support of immigration declining.
Industry associations continue to press for immigration reform as immigrants are vital to the building industry (as other industries). Some landlords feel that this cash-based demographic are historically low-risk renters while others view the cohort as “judgment proof” (i.e. no assets or accounts to levy in the event of collections). Still, concurrent risks like drugs and human trafficking remain.
What do multifamily businesses need to know about this rapidly changing issue?
Sanctuary law, dangerous precedent
Local sanctuary laws oppose federal law. Such rules have increased in the wake of the politicization of the issue and inconsistent enforcement. The map shows jurisdictions with laws, ordinances and policies that obstruct immigration enforcement by prohibiting agencies from complying with Immigration and Customs Enforcement (ICE).
Public opinion
Those Americans who think that immigration is a “good thing” reached its lowest level in nearly a decade according to a new Gallup poll.
- 68 percent of Americans support immigration, down 2-points y/y and down 9-points since 2020
- 55 percent feel that immigration worsens the country’s drug problem
- 41 percent of Americans say the level of immigration should be reduced, (up from 28 percent in 2020)
- 33 percent Americans want the rate of immigration reduced; 39 percent want to hold steady with the current rate
Benefit model
The overwhelming result of [its] policy of assimilation, throughout American history, has been a strengthening of our social capital, the continuing expansion of our economy, and the constant renewal of our national purpose. America has been good for immigrants, and immigrants have been good for America. (Matthew Spalding, Ph.D., Heritage)
- 24 percent construction workforce who are immigrants
- 30 percent construction tradesmen who are immigrants
- 40 percent construction workforce in Calif., Texas, and others are immigrants
- 73 percent builders report shortages of carpenters/ framers
- 60 percent builders report shortages of brick/cement masons
- 2017 the year labor demand decoupled with immigrant flow. This has yet to be re-connected resulting in labor shortages.
Politicking
- 16 percent increase in undocumented immigrants since 2021
- 70K emergency housing vouchers sans citizen requirement were released by HUD in March
- SB1817 Illinois law compels landlords rent to illegal immigrants
Law actually
The federal government has almost exclusive authority to address immigration including illegal immigration. The Fair Housing Act (FHA) prohibits discrimination based on among other attributes, “national origin.”
- As frustration over federal immigration policy heats up—rules impacting rental property continue to be a moving target
- HUD has clarified that illegal immigrants have the protection of the FHA
- There is presently no federal law prohibiting landlords from renting to undocumented immigrants
- Undocumented immigrants are likely unbanked making collections—if needed—difficult or impossible
Best practice
Rental applications and other leasing requirements should be consistent across all prospects
