Immigrants Bear the Brunt of Housing Crisis
Lately we’ve read reports that mortgages are harder to come by for some minorities, but today a new report [pdf] is out that immigrants — 1.5 million of whom have moved to NYC since 1990 — in New York City are hit hardest by the whole big mess of housing crisis. “The real estate run-up…
Lately we’ve read reports that mortgages are harder to come by for some minorities, but today a new report [pdf] is out that immigrants — 1.5 million of whom have moved to NYC since 1990 — in New York City are hit hardest by the whole big mess of housing crisis. “The real estate run-up and ensuing credit crisis has exacerbated an already grim housing situation for New York City immigrants,” writes the NY Times. “Immigrants who own homes pay far more of their incomes for housing, on average, than native-born New Yorkers, and may have been vulnerable to subprime lending.” Foreclosures pervade neighborhoods with large concentrations of immigrants, including Bushwick, East Flatbush and Flatlands, and some private equity investors have engaged in questionable tactics, buying property and tying to force folks out to raise the rent. It’s not that the rent is actually higher in some of these properties; part of the problem comes from a kind of wage racism. “According to a 2005 study quoted in the report, immigrants actually pay less in absolute rent than native-born Americans, but their incomes are lower.”
Housing Crisis Hurts Immigrants More [NY Times]
Photo by rich_awn.
Never mind this report’s suggested “fixes” — they are just trying to legalize illegal work-loft conversions for recent college grads, which will only result in more “luxury” condification of Bushwick, falling prices of rents and sales notwithstanding.
The real estate agents, mortgage brokers, and particularly lawyers who participated in these rip-offs of non-English speakers who were expressly not informed their ARM would reset need to be arrested and prosecuted.
The one good thing is that rentals and sales are gonna get cheaper, and that trickles down.
Rob,
I would argue that there is no such thing as a “right”, only privileges that a complex society can or cannot provide. That isn’t the point however. For a variety of reasons, some of which I highlighted, most governments in the world fail to provide these “rights”. For people who were previously subservient to those governments, they tend to work harder for the basics Americans take for granted.
um housing is a fundamental right. so is food, water, and love.
*Rob*
Let’s also not forget that housing is much more expensive where many of these immigrants come from. Many immigrants come to the US expressly because they tire of their corrupt and often communist-in-action nations where property rights are non-existent and the government is too inept to build enough public housing. They WANT a home, but in their home country are stuck living in slums on government land. They are willing to pay much more for it than a typical American who believes housing is a fundamental right.
Doesn’t everybody just hate it when they post something and then MM comes along and writes it so much more intelligently and eloquently? 🙂
rob – there are plenty of eastern european immigrants just trying to make ends meet and struggling. I don’t know if you made that remark tongue-in-cheek, but its wrong.
I would hate to have serious issues about mortgage scams, subprime mortgage shenanigans and general hardships, abuse and ripping off of those who can afford it least turned into a turf war over who is more ripped off and/or abused, or the worst off. That’s one of the reasons it is so hard to get real reform in the industry, or better, a real coalition of all of the above to pressure the powers that be for real help and reform. We still play small pond politics, and fight each other over who is more put upon.
I’m not saying there aren’t real or even perceived differences between foreign born, native born, European, Asian, African diaspora, East Asian, Hispanic, Middle Eastern, etc, etc lifestyles and buying/spending habits. Just saying Dave is right – over analyzing, and media and political marginalizing, only succeeds in keeping everyone scrabbling over the bottom crumbs.
Why do I feel that this problem is being over-analyzed? I think its much simpler: The people with the lowest income level bear the brunt, plain and simple. Haven’t there been additional studies that prove that immigrants save more of their income than native born Americans and that their socio-economic standing rises faster.
All of this analysis to conform to various aspects of political correctness and pigeonhole various groups is a bunch of hogwash.
As to robs point, I certainly felt preyed upon when I moved here from Chicago. The scorn and ridicule was unbearable. 🙂
Additionally, I now feel preyed upon as a Manhattanite now living in Brooklyn with all of those locksmith and contractor cards being placed in my front door. 🙂