SAN DIEGO (KGTV) -- Buying a home is a hallmark of the American dream for many immigrants.
Still, as the Trump administration ramps up its efforts for mass deportations, the situation is forcing prospective homebuyers who are undocumented to reconsider investing in a home.
Across the U.S., prospects are already facing a rough market, competing with high prices, low inventory, and high interest rates.
Adding the fear of deportation is creating what some real estate agents are calling "the perfect storm" of a difficult market.
"In the last month, our lead intake has been dropping big time," Realty for America realtor David Fletes said. "We used to get between 10 to 20 buyer requests to get pre-approved in a month. Right now, we're lucky we get 10.”
Fletes, who has been a realtor in San Diego for nearly two decades, estimated 80% to 85% of his clientele is Hispanic/Latino. Of those people, he estimated about 20% to 30% apply for a loan using an ITIN number, the identifier undocumented immigrants use to file taxes.
In his 17 years as an agent, Fletes did not think immigration enforcement would be a reason for clients to withdraw from a deal or not pursue buying a home. The trend of buyers withdrawing is also being seen in other parts of California and across the nation.
"People who are considering it are starting to reconsider [starting the process]," said Gary Acosta, CEO and co-founder of the National Association of Hispanic Real Estate Professionals. "I've heard stories where people have actually been a day or two away from closing, walked away from the transaction, and didn't even ask for the deposit back".
Acosta has more than 30 years of experience in real estate. Over the years, as he's developed relationships with clients, he said the relationship between clients and realtors in the Latino community goes much deeper than the real estate transaction.
"[Realtors] tend to be financial consultants in their communities, so people come to them for a broad array of advice on different financial issues," Acosta said.
Fletes echoed this and shared how clients and realtors become close on a personal basis.
"[Clients] become like a family to us", Fletes said. "You help them, they refer you to their friends, coworkers, family members, and anyone else. So, it's a really tight community".
A 2024 report called the "State of San Diego Latinos Report" by the San Diego Foundation showed a stark difference in the Latino and non-Latino homeownership rates in Southern California's largest counties.
Compared to Riverside, Los Angeles, and San Bernardino, the report stated San Diego County has the widest gap in homeownership rates between Latinos and non-Latinos; 43% of homeowners in San Diego County identify as Latino, while 59% do not.
Acosta also mentioned an important note to remember about Latino households with undocumented immigrants, living in what's known as a mixed-status household.
"It's not like undocumented people only live with other undocumented people," Acosta said. "They generally live with citizens, and they might be married to a citizen. And they may have kids here in this country".
The point of a mixed-status household by Acosta turns the attention to the financial strain deportations put on households.
A 2016 study by Cornell University during the first Trump administration highlighted the strain. The study suggests that if the wage earner in the household is deported, the risk of foreclosure skyrockets, adding that "a sizeable share of legal Latino homeowners live with undocumented wage earners who contribute to household income.”
The study shows that about one-third of undocumented Latinos live in homes owned by legal Latino residents. When the wage earner is deported, their income is lost, which means paying mortgages becomes more difficult, ultimately leading to foreclosures. It's a glimpse of how legal status and deportations can contribute to racial inequality.
Both Fletes and Acosta are recommending that clients get legal advice as they try to navigate this obstacle in the home-buying process.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
