This Post article describes a linkage between immigration and housing--actually two linkages: immigration swelled as more jobs working in construction became available. As immigration swelled, more immigrants entered the market to buy houses, sometimes financing the high costs by renting rooms to construction workers. Now the housing bubble has popped, anti-immigration seems the predominant mood, and local housing prices are going to pot.
From what I see around, I can't disagree. (The Post also had an article yesterday describing a shortage of cooks for new restaurants--$20K doesn't cut it for a line cook. And Wednesday my local Safeway Starbucks was closed--no workers. That is going too far.)