Can Immigrants Ease Surplus Housing Inventory?
The most efficient way to the housing downturn is for the United States to let in more “skilled immigrants” who would obtain enough to purchase houses and balance the housing market argues ex Federal Reserve Chairman Alan Greenspan.
The 83-year-old economist claims there are 900,000 units of “excess supply” housing for sale in the United States, according to an interview with the Wall Street Journal.
From the Journal: “He did offer one suggestion: ‘The most effective initiative, though politically difficult, would be a major expansion in quotas for skilled immigrants,’ he said.”
A Boost To The U.S. Economy
Only the configuration of new households would elevate the demand for vacant houses. Letting in more skilled immigrants, who have a tendency to obtain enough to purchase homes, would achieve that whilst paying other dividends to the U.S. economy.
“He estimates the number of new households in the U.S. currently is increasing at an annual rate of about 800,000, of whom about one-third are immigrants.” Perhaps 150,000 of those are loosely classified as skilled,” he said. “A double or tripling of this number would markedly accelerate the absorption of unsold housing inventory for sale-and hence help stabilize prices”.
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