Economists Refute Trump’s Claims on Immigration and Housing Crisis

ICARO Media Group
Politics
11/10/2024 22h17

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Former President Donald J. Trump frequently suggests that mass deportations could alleviate the housing affordability crisis in the United States. However, many economists argue that his solution may actually worsen the problem rather than solve it. Trump, along with his running mate, Senator JD Vance, has consistently attributed the skyrocketing housing prices to a surge in immigration. They argue that removing undocumented workers from the country could ease the pressure on the housing market.

Contrary to their claims, experts assert that immigrants have played a minimal role in the recent escalation of housing costs. The surge in rents and home prices began in 2020 and 2021, periods that preceded the significant influx of immigrants in 2022 and 2023. While immigrants might have had a minor impact on housing demand in certain areas, economists agree that their effect is far from substantial. Even the economist whose research was cited by Vance has stated that immigration had a negligible recent impact on housing costs.

Some economists and housing industry experts warn that large-scale deportations could backfire. Immigrants are not just consumers of housing; they also play a crucial role in its construction. Foreign-born workers make up about 25% of the construction labor force and are especially concentrated in specialized trades such as plastering, drywall installation, and roofing.

In many rapidly expanding housing markets, particularly in the Southern United States, the influx of immigrants has helped residential builders address the demand for skilled trades and general labor. Industry groups and job market data indicate that these workers are essential for meeting current housing demands. Therefore, reducing the immigrant workforce could exacerbate the housing crisis by slowing down construction and limiting the supply of new homes.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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