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Question: “I was reading in the Texas Tribune that an estimated 12% of Texas residents are undocumented, over 2 million people. Have you given any thought about the impact that mass deportations could have on rents and revenue? I wonder what percentage of the renters or employees across MP properties are at risk.” – D.S.
Answer: Let’s say a few hundred thousand are deported from Texas over the next 4 years (just a number). Households rent not people, so divide that by 2.3 people per household and we get about 80 thousand households. 37% of undocumented families own homes, so about 50 thousand households rent. Note the 50 thousand is just 1.25% of the total number of units in Texas. If half are in C’s and half are in B’s, then B’s lose 25 thousand households over 4 years, or 6 thousand a year. Where in Texas? Austin, Dallas, and Houston have the highest populations of undocumented. We own no properties in Austin or Houston and while we own none now in Dallas, we may in the future.
Long way of saying there will be an impact, and we believe we are more insulated based on our investment profile.