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Arizona Could Face Foreclosure Crisis Because of Controversial Immigration Law, SB 1070

by Jacquelyn Mahendra on 06/14/2010 at 10:07am

Via AZ Central, real estate is the latest business in Arizona to suffer from the state’s new Draconian immigration law, SB 1070. 

The law has does not go into effect until late July, but it is already wreaking havoc on the state’s economy:

The impact of Arizona’s tough new immigration law is rippling through the state, six weeks before the law is scheduled to go into effect.

One area where SB 1070 could hurt Arizona, but take many months to manifest, is metropolitan Phoenix’s housing market. […]

“The immigration law creates a difficult situation for both legal and illegal residents,” said Jay Butler, director of realty studies at Arizona State University. “Some illegal residents may have planned on leaving the Valley anyway because they can’t find jobs. But I have talked to young Hispanics who are residents and so are their parents and grandparents. And those Hispanics plan on moving to other states because they don’t want to be perceived as second-class citizens.”

It turns out many tens of thousands of undocumented residents are Arizona homeowners, and SB 1070 encourages them to up and leave — which could upset an already fragile AZ housing market:

There’s a misconception among some Arizona residents that illegal immigrants don’t own homes in the state. Housing advocates say thousands if not tens of thousands of people who are not legal residents have purchased houses here. […]

That cold reality isn’t keeping GOP state lawmakers from looking into ever-harsher ways to appear tough on illegal immigration, without actually solving the problem. These legislators’ latest move? Vowing to revoke the 14th amendment… rolling back citizenship rights for the children of undocumented immigrants.

Stay tuned. Unless federal immigration reform somehow makes it back to Congress’ To Do list this summer, things are going to get even uglier before we see real reform.

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