Harvard: Immigration Halt Wouldn't Slow Housing

Fears that a change in immigration policy could throw cold water on the hot housing market are unfounded, according to the director of the Joint Center for Housing Studies at Harvard University.Even if the Bush administration were to shut the doors completely to further immigration, the impact on housing would be negligible, at least in the short term, Nicolas Retsinas said at a summit on the U.S. real estate market in Los Angeles earlier this month. "The immigrants who will be buying homes over the next few years are already here," said Mr. Retsinas, noting that the Joint Center's research shows immigrants don't enter the housing market until they are in America for 11 years. And at the National Association of Home Builders convention in Las Vegas, officials from Fannie Mae and Freddie Mac said the concern isn't with the number of immigrants but rather the ability to reach them. "These potential homebuyers have unique needs," said Rebecca Froass, manager of industry relations at Freddie Mac. Typically, the primary barriers to ownership are credit issues and a lack of funds for a downpayment and closing costs. But Ms. Froass said minorities and immigrants face other hurdles, including a lack of affordable housing, little understanding of the homebuying process, and continuing financial obligations in their home countries.