The campaign of President Donald Trump makes it difficult for foreigners to buy and rent homes, threatening a major column in the economic boom, which lasted half a knot in Miami.
Miami, like many of the United States, had already seen a real estate slowdown driven by high mortgage rates and standard prices. South Florida was also beaten by high insurance costs and apartment maintenance fees, as well as unavoidable comedies after the frenzy caused by the epidemic that made the area as a magnet for new arrivals.
Now, talks with home hunters, brokers and mortgage lenders indicate another dynamic in play: increasing concern that legal immigrants are not safe from the constantly changing policy that paralyzes the market in Miami, where more than half of the population is born.
House sales decreased by more than 17 % from the previous year in Miami, nearly six times the national decline, according to March data from RedFin Corp. Now you spend average 100 days on the market, more than twice the average US and a sign of declining demand. In the rental market-which is likely to meet the needs of illegal immigrants and legal immigrants who live temporarily in the United States-the prices of one bedroom apartments decreased by 16 % last year, according to Zillow rental data.
“Some people are afraid – they want to buy or rent, but they say:” How can I know if I do not know if it is in the next year, or next week, will my visa be extended or not? “This really affects our market.”
All this indicates how quickly Trump pledged the largest batch of deportation in history may go to the real estate market in one of the most culturally varied cities of America. Three months after his second term, the president moved to praise the refugees and asylum and the so -called temporary protected status programs for immigrants from Cuba, Haiti, Venezuela and other places, which affects thousands of people in Miami until some of these policies are challenged in the court.
Florida has strengthened federal immigration efforts with one of the most difficult state campaign in the country. In February, Governor Ron Desantis signed the laws criminalizing unauthorized entry, expanding enforcement financing, and imposing a death penalty for illegal immigrants convicted of capital crimes.
In recent days, federal agents, local law enforcement and state 1120 “criminal” migrants arrested Florida.
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Real estate is of great importance in Florida. The industry generates approximately a quarter of the state’s economic activity, more than any other state, according to the National Association of Real Estate Bidgers. There are about 11,000 real estate agents in South Florida, much more than the Los Angeles and New York metro – cities more than twice their size.
But the housing boom fed by the epidemic in Florida is now in the opposite direction. Throughout the state, sales decreased in March and housing were tried at record levels, according to RDFIN. People in this industry say that pressure on immigrant buyers does not help.
One of the Miami agents said that in recent months, two -thirds of his customers have canceled the highly luxurious market in the Breykin region. Another said that the demand does not decrease significantly among the visa holders, but the supply is also growing because some of the owners who do not have permanent residence are looking to sell their homes and buy them in Europe or Latin America instead. Hector Diaz, the company’s lawyer, immigration lawyer, said he is witnessing a great slowdown in foreigners ready to invest an amount of one million dollars or more often to obtain a green card based on the investor.
“They are retreating and waiting to find out how this plays,” said Baiji Olin, CEO of OneWorld Properties, who said that customers from France and Mexico have moved away from deals about concerns about immigration rules. “At any time the United States displays any kind of uncertainty or signs of issues, the rest of the world stops, especially if there is an investment component.”
Trump’s policies also affect the minimum end of the market, as many owners require proof of American citizenship or a long -term visa before renting a house, according to local real estate brokers. They say this is a departure from the past, when temporary visas were good and often the angel was ready to look at the other direction if someone was unreliable.
In addition to pressure, the Trump administration reduces real estate loans to the Federal Housing Administration-which represents 16 % of all one family loans-for anyone who does not get American citizenship or permanent residence. To date, the Federal Housing Administration loans, which are popular for buyers for the first time because they accept low credit grades, and only 3.5 % payments, are available to people with temporary situation.
“This has an effect already,” said Alexander Jose Ganarella, the mortgage advisor and executive director of Ifinance Florida at Coral Gables. “It will only have a more effect.”
Trump campaign adds a deportation to the problems facing one of the main wire of growth in the country since the epidemic. Government data showed that wages in the Miami region increased by only 1.2 % from last year in March, as it decreased from an average of more than 7 % in recent years and weakest among the largest metro areas in the country. After contracting a much faster rate than the national average in the wake of the epidemic, the growth of jobs in Miami was behind the United States.
The broader issue is that Trump’s policies have been aimed at longing America as one of the most desirable places in the world to invest, according to Chinen Zhao, head of economic research in Redvin.
“From the point of view of the foreign buyer, America may not be a very stable place to invest at the present time – it’s much less attractive than assets,” said Zhao. “Foreign buyers do not see real estate as an attractive possibility anymore.”.
