Immigrants Are Good for the Neighborhood

Immigrants Are Good for the Neighborhood
Representative Tom Davis
the Washington Post
March 12, 2000

A wag once quipped, when commenting on the District's exotic eating establishments, "Lose a country, gain a restaurant." Although culinary specialties may be the most visible signs of what immigrants have brought to the region, a study by the Alexis de Tocqueville Institution shows that the biggest benefit they bring is in the form of increased property values.
Most cities have a neighborhood that has been revitalized by immigrants. This is not a new phenomenon. Long before the Vietnamese moved to Bailey's Crossroads, and the Ethiopians and Central Americans came to Adams-Morgan, New York had Little Italy and the District had Chinatown.

Foreign-born Americans, both past and present, have renovated communities that had fallen into disrepair. And, as this study indicates, when more immigrants come to a neighborhood, property values--a useful index of a community's health--tend to go up. Immigrants also often generate jobs, improve schools and even contribute to reduced crime.

The study looks at areas with big increases in property values; areas with large declines or smallest relative gains in property values; areas with a sharp influx of immigrants; and areas with an outflow of immigrants or a smaller-than-average increase of immigrants. This was done over 18 years in geographically based units that have an average population of about 3,000.

In the District, the 10 census tracts with the lowest number of foreign-born persons showed a 7.6 percent decrease in property values from 1980 to 1998. During the same period, the average increase in property values District-wide was 2.36 percent.

In the 10 census tracts with the highest number of immigrants, property values increased 13.77 percent, more than five times the D.C. average. The greatest positive change came in Adams-Morgan and Mount Pleasant.

The results in Northern Virginia and suburban Maryland showed a similar relationship, though the trend appears strongest in the District. Suburban Maryland suffered a steep decline in property values in areas where the immigrant population decreased most significantly. In Northern Virginia, the 10 tracts with the highest number of immigrants experienced a 37.5 percent increase in overall property values.

Similarly, in the 10 Virginia neighborhoods with the largest rise in property values--an average of 75 percent--the percentage of foreign-born increased by 60 percent.

How do newcomers to America afford housing and increase property values?

Most immigrants start off as tenants but work toward home ownership. According to real estate agents, immigrant renters appear to have a low default rate. When they do finally achieve their goal of ownership, they tend to turn rental properties into owner-occupied housing, increasing neighborhood stability.

A drive through Springfield or walk through Mount Pleasant shows the economic vitality immigrants have imparted to these areas. Restaurants, markets, video stores and small businesses are a testament to community revitalization. The renewal has gone far beyond the commercial realm, however, and has resulted in an economic improvement that benefits our entire area.

Tom Davis -- a Republican representative from Virginia, chairs the subcommittee on the District of the House Government Reform Committee.

**Immigrants Are Good for the Neighborhood**
**Representative Tom Davis**
the Washington Post
March 12, 2000
A wag once quipped, when commenting on the District's exotic eating establishments, "Lose a country, gain a restaurant." Although culinary specialties may be the most visible signs of what immigrants have brought to the region, a study by the Alexis de Tocqueville Institution shows that the biggest benefit they bring is in the form of increased property values. Most cities have a neighborhood that has been revitalized by immigrants. This is not a new phenomenon. Long before the Vietnamese moved to Bailey's Crossroads, and the Ethiopians and Central Americans came to Adams-Morgan, New York had Little Italy and the District had Chinatown. Foreign-born Americans, both past and present, have renovated communities that had fallen into disrepair. And, as this study indicates, when more immigrants come to a neighborhood, property values--a useful index of a community's health--tend to go up. Immigrants also often generate jobs, improve schools and even contribute to reduced crime. The study looks at areas with big increases in property values; areas with large declines or smallest relative gains in property values; areas with a sharp influx of immigrants; and areas with an outflow of immigrants or a smaller-than-average increase of immigrants. This was done over 18 years in geographically based units that have an average population of about 3,000. In the District, the 10 census tracts with the lowest number of foreign-born persons showed a 7.6 percent decrease in property values from 1980 to 1998. During the same period, the average increase in property values District-wide was 2.36 percent. In the 10 census tracts with the highest number of immigrants, property values increased 13.77 percent, more than five times the D.C. average. The greatest positive change came in Adams-Morgan and Mount Pleasant. The results in Northern Virginia and suburban Maryland showed a similar relationship, though the trend appears strongest in the District. Suburban Maryland suffered a steep decline in property values in areas where the immigrant population decreased most significantly. In Northern Virginia, the 10 tracts with the highest number of immigrants experienced a 37.5 percent increase in overall property values. Similarly, in the 10 Virginia neighborhoods with the largest rise in property values--an average of 75 percent--the percentage of foreign-born increased by 60 percent. How do newcomers to America afford housing and increase property values? Most immigrants start off as tenants but work toward home ownership. According to real estate agents, immigrant renters appear to have a low default rate. When they do finally achieve their goal of ownership, they tend to turn rental properties into owner-occupied housing, increasing neighborhood stability. A drive through Springfield or walk through Mount Pleasant shows the economic vitality immigrants have imparted to these areas. Restaurants, markets, video stores and small businesses are a testament to community revitalization. The renewal has gone far beyond the commercial realm, however, and has resulted in an economic improvement that benefits our entire area. Tom Davis -- a Republican representative from Virginia, chairs the subcommittee on the District of the House Government Reform Committee.