THE LOCAL ECONOMY IS OK FOR THE TOP 1%

Real estate slump? None exists for Tucson homes above $1M
By Christie Smythe
arizona daily star
Tucson, Arizona Published: 08.07.2007

While overall home sales are down from 2006, luxury homes priced at $1 million or more are selling well this year, says a monthly report by housing market consultant John Strobeck. ... For the first six months of the year, closings in that price category numbered 117, putting Tucson on track to beat last year's total of 218, Strobeck said.

The market is likely doing even better than the number of closings suggests because custom-built homes are not included in that tally, Strobeck's report noted.

Long Realty Co. agent Heidi Baldwin, who represented the buyers in a recent record-setting $4.95 million sale at Saguaro Ranch, said more high-end buyers from around the nation are showing interest in Tucson. ... Another factor is that rich buyers aren't affected as much by many of the problems weighing down the rest of the industry, such as tighter lending standards, Baldwin said. Most of her clients pay in cash, she said.

Now, illegal immigrants play a significant role in the housing industry here, as this article shows:

Prop. 200, Graf lack support at forum
By C.J. Karamargin ARIZONA DAILY STAR 8/21/04

John Bremond, president of KB Homes, urged candidates to avoid getting "hung up in the hysteria" of the immigrant debate and said "undocumented" workers are vital for a home-building industry that grapples with persistent labor shortages.

"We rely on that work force," he said. Bremond agreed that "something needs to be done" about the nation's immigration problems, but said it doesn't make sense to pursue "contributing members of society." He said the contributions of undocumented laborers include paying Social Security taxes but never collecting the benefits.


I noted earlier that home builders have been upfront about their need for illegal immigrants and try to justify it by claiming that the illegals hold costs down for home buyers. They neglect to point out that they also hold down wages:

Illegal labor helps put Tucsonans into homes
Without immigrants, prices would soar, experts agree
By Brady McCombs and Thomas Stauffer
Arizona Daily StarTucson, Arizona Published: 06.14.2006

The average hourly wage for Tucson construction workers is $14.42, Bureau of Labor Statistics estimates for March show. That ranks below wages in Western cities including Phoenix, Salt Lake City, Denver, Las Vegas, Los Angeles, San Diego, Seattle and Portland, Ore. — and the national average.


We have a new state law that is much tougher on employers who hire illegal immigrants and you already know the response of the patriotic business community:

U.S. chamber decries Arizona law on illegal workers
Arizona Daily Star
Tucson, Arizona Published: 08.08.2007

The U.S. Chamber of Commerce today joined Arizona business leaders in challenging the constitutionality of a new state law that regulates the employment of illegal workers.