Home Prices Fall Again - We Need Another Disaster

The Huffington Post reported, home prices fell AGAIN in the first quarter of 2011, with the biggest drop since 2008.  http://www.huffingtonpost.com/2011/05/09/home-prices-first-quarter-2011_n_859299.html

While that isn't a surprise for many home owners, it should be a wake up call for Georgia.  Both the House and Senate recently passed a new, anti immigration bill, HB87, which Governor Deal has said he will sign.  So now you're asking what falling home prices have to do with illegal immigrants.

Politicians are hoping to drive 425,000 undocumented immigrants, mostly those from South of the Border, out of Georgia because of complaints of "illegals" by their constituents.   Unfortunately their constituents can't tell the difference between an "illegal" immigrant and a born in the USA citizen.  Many, xenophobic residents, see "brown skin" and Hispanic surname and assume "illegal."  Then, they attach "criminal" to their set of labels as they judge others.  When I say, constituents it should be mentioned, that even law enforcement and the E-Verify system have trouble differentiating immigration status, and ICE is not infallible.  Rather than educate the public, that the population growth rates include many with Hispanic ancestry, many politicians are seizing the opportunity to capitalize on "Hispanic Hysteria" and turn it into a vote generating machine.  Is that creating a pandemic, pimping or pandering?  Hard to tell... call it what you will.

Back to why the two issues are connected:  Much of Georgia's housing was built with immigrant labor - undocumented labor that was lured here with (unfulfilled promises of gaining legal status) as well as construction jobs.  (Agriculture is a different story for another time.)  They SETTLED here, some bought homes while others rented; they became part of the community.  Home buyers benefited from the fruits of their labor, as did contractors, lumber & supply companies, real estate agents & brokers, mortgage lenders and the whole supply chain, including advertisers.  Those 425,000 people LIVE in dwellings that will become vacant if they leave the state.

"They" are often part of "mixed status" households; meaning some in the household are here legally.  One spouse may be an "authorized resident" (citizen by birth or naturalized OR legal resident alien,) while the other is undocumented.  Or maybe the Grandmother who babysits is the undocumented family member.  Whatever the household make up, it's estimated, that if Georgia is successful, some 100,000 residential properties could become vacant; most within a relatively short time frame. This will happen while we are in the midst of a foreclosure crisis which has already driven home values far below replacement costs.

MetroBrokers today says there are 110,000 active real estate listings in Georgia (remember all homes aren't listed - those still in the foreclosure process are part of the "unlisted" figures).  Now add 100,000 newly vacated properties that are likely to funnel into the foreclosure pipeline to the mix. 

Keep in mind, when 10% of a neighborhood becomes vacant the whole neighborhood is likely to become blighted.  Thieves arrive to "harvest" copper plumbing fixtures, HVAC units and anything else of value from the vacant properties.  The cost to rehab the home is more than the land value.  It's just about worthless.  Squatters and the homeless may take up residence.  More good residents will flee.  Neighborhoods begin to look like casualties of a war zone.

Government is funded by real estate property taxes.  As the value of homes fall; tax revenue collected falls.  Government no longer has adequate funds needed to maintain services such as fire, police, libraries etc.  Georgia currently has a AAA bond rating; but how long will that last with falling revenues?  There will be less sales tax collected as the population shifts or leaves.

It took Georgia some 100 years to recover following a devastating Civil War.  Then came the Civil Rights Era.  What has Georgia learned in the intervening years?   


The tornadoes which ripped through the Southeast recently left death, destruction and many homeless families in the wake.  We have another disaster in the making.  This one created by a law that drives residents from the state, separating families and vacating properties while devastating communities.  Yes, a natural disaster could save us by wrecking havoc, death and destruction while creating a need for housing. But is that something we really want to hope and pray for?

Are there other considerations?  Are real estate investors waiting for things to hit rock bottom so they can capitalize on the loss of others?  Will foreign investors sweep in and buy up homes and property after the economic devastation? 

It would be less painful - at least economically - for the majority of Georgians if Governor Deal vetoed HB87. Yes, some would have to become accustomed to "brown faces" and unfamiliar names, but the United States is a melting pot.  And Atlanta prides itself on being an international city.   

Let the Hispanic Hysteria subside.  No doubt a new target group will be found soon enough. 

Georgia's Anti-Immigration Pending Legislation

If Georgia citizens realized what these anti-immigration bills will do if enacted THEY would run for the border and escape Georgia.  The legislation won't accomplish what the public wants but unfortunately it will cost taxpayers and business dearly.   

Arizona business leaders are distressed over the situation created by that states anti-immigration legislation.  Sixty of Arizona's big company leaders sent a letter to Arizona this week.   There is a link to the letter in the Arizona Republic News.

Police resources are already stretched thin.  These "new crimes" will distract police focus away from  higher/serious offenders (Level I & II) in the community and put the focus on immigrants who may have been riding a bicycle or fishing without a license.

Additionally some of the legislation will further burden the child welfare system when one parent is jailed for one of these "new crimes" and the other is sent to ICE detention.

Some Georgia jurisdictions already participate in the 287g program which has also experienced controversy.   

House Bill 59 - Would bar undocumented aka unauthorized immigrants from attending Georgia public universities and technical colleges even if they pay higher out-of-state tuition (as the current law allows).  Those paying out of state tuition actual pay more than the costs of the universities, so undocumented students are funding the education of citizens.  One argument given by bill supporters is the undocumented take seats from citizens.  Those here on Student Visas can attend those same schools. Their families do NOT live here or contribute to the tax base,  while undocumented people/families DO pay Georgia taxes. 

House Bill 87 - (Georgia's answer to Arizona's SB1070) Multiple components: Mandates E-Verify; ID Theft, with stiff penalties for using giving an invented name and/or for making up a 9 digit Social Security number;  Licensed drivers, authorized residents can be arrested, jailed, fined AND have the vehicle seized for having an undocumented adult passengers in a vehicle under the "transporting" provision;  "Sheltering" - A husband or wife can be arrested, jailed and fined for providing "shelter" and food to their undocumented spouse - the parent of their children.  Same applies to roommate situations.  

House Bill 296: If passed, would mandate local school and hospitals to count the illegal immigrants they treat.  In order to get an accurate count they would have to ask ALL patients for that information.  This would be burden on schools AND medical providers as well as PATIENTS.  AND likely necessitate costly changes to records systems & databases. 

Senate Bill 7: If passed, would ban undocumented workers from collecting workers’ compensation benefits for on-the-job injuries.  This is particularly troublesome as those injuries now covered by workers comp would still need to be treated.  Again burdening healthcare providers.  Undocumented workers frequently work positions authorize residents don't want.  As a result some are at risk from falls, wounds and exposure to chemicals such as insectides and weedkillers.

Senate Bill 27: Toughens current laws to prevent state agencies and counties from hiring undocumented workers for taxpayer-funded projects.

Senate Bill 65: Would prohibit undocumented immigrants from collecting unemployment benefits.  This isn't needed as undocumented people are already prohibited from collecting unemployment benefits. 

Senate Bill 104:  Has components similar to HB 87 and SB 40.   Punishes drivers who pick up day laborers in certain situations.  Would allow warrantless arrests of those who police have probable cause to believe have committed 'any public offenses' that make them eligible for deportation.  

Senate Bill 174: Would require all jails in Georgia to participate in Secure Communities. The program compares the fingerprints of people booked into jails against a federal database, and if an unlawful immigrant is determined,  ICE is notified and may place a detainer on the party.  See "Secure Communities" info at ICE.