Immigration, real wages impact, housing ... now how do we invest?

[Cory J Thornton]

I have listened to a few podcasts recently from folks whose opinion I appreciate like Ken McElroy, George Gammon, and a few others. 

I have been trying to think through how a surging population (via immigration) will impact housing. 

I don't know the timeline or to what extent, but these are the the puzzle pieces around which I have the most conviction. 

- Increasing population is increasing demand 

- Labor trends seem to indicate that a large percentage of the "jobs added" in the jobs report over the last few years are works who are new to this country. - A dramatic increase in the supply of willing workers usually results in a decrease in hourly wages. 

- A dramatic increase in the supply of folks needing a place to live usually results in increasing home prices and increased rents. This is very true for anything remotely affordable or entry level. Essentially these trends will culminate in an increased cost of living and a stagnant or decreased wage (again, felt most around affordable/entry level housing). 

As things become less and less affordable we are actively seeing more people push to an hour away from a city, even into rural areas, as long as the internet speed is strong enough. 

As home owners, business owners or investors, how are these kinds of trends impacting your decisions right now? Are you putting together any strategies to specifically address these trends? 

Personally, even with interest rate uncertainty and election year hysteria, I am building a stronger and stronger conviction around the fact that I need to get a little more aggressive in acquiring more income properties.