The National Association of Home Builders has applauded U.S. Senate for passing the comprehensive immigration reform. Reform enables illegal immigrants to obtain legal status in the States. U.S. will have almost one million job openings in construction industry and NAHB expects legalized immigrant workers to largely fill this void.
All good so far, but applying process is very costly. Illegal immigrants who have lived in the country for two to five years, must be able to prove that they have paid all federal and state taxes also much paperwork is included. If illegal immigrant has to pay taxes, they must demand higher pay to achieve earlier income level. This is a path to increased costs. In my opinion, Fortune magazine had much more realistic take on this matter.
Fortune magazine says that up to 40% of home building is done by undocumented aliens (referring those terrestrial ones). While big builders don’t employ illegal immigrants their subcontractors do. There have been court rulings, which have ruled against original big contractor for using subcontractors that employed illegal immigrants. If this hard line continues construction costs will go up.
Looks like there is another cloud hanging over real estate market. What do you think?