In my last blog, I commented on an article by Money Magazine that listed 10 cities with the fastest rising homevalues in the nation.
I did some further research, and found something VERY interesting:
- only 2 of those 10 cities actually INCREASED in population between 2000 & 2007: McAllen,TX & El Paso, TX.....every other city on the list DECREASED in population between 2000 & 2007 (
see here).
- McAllen, TX had the HIGHEST 1yr home appreciation forecast of all 10 cities: 4%
- El Paso, TX had the LOWEST 1yr home appreciation forecast of all 10 cities: 1.8%, but had the LARGEST 2007 population of any of those cities: 606,913 (which is more than 2x the population of the next largest city)
- And most interesting, both McAllen & El Paso sit directly on the Mexican border:
El Paso, TX
McAllen, TX
Now of course, the natural assumption is that El Paso & McAllen both incur a heavy amount of illegal immigration, simply because of their proximity to the Mexican Border. Whether or not that assumption is fair is another question, but this much is certain:
Of the 10 fastest growing cities in the U.S., the only 2 that are actually GROWING in size are Mexican border towns.
And if a city continues to grow in size, then it logically needs more housing to accommodate that growth. More need for housing means a greater DEMAND, and when DEMAND equals or outweighs SUPPLY, then homevalues go up!
Not to mention, if a city must SUPPLY more housing, then that means more home construction, and more jobs for both Agents & Lenders, as well as everybody else involved in the Real Estate Industry.
So whether you are for or against Illegal Immigration, as a homeowner or a Real Estate professional you should also consider the positive effect it may have on your property values & your profession (at least in El Paso & McAllen, TX).
-Peter H.
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