The Patriot Post® · Mass Migration and Housing Costs
Housing prices have inflated even more than consumer goods. Both Donald Trump and Kamala Harris have recognized this dire reality and touted their plans to address it.
Harris’s solution is — wait for it — yet another government giveaway: a $25,000 down payment for first-generation homebuyers and a $10,000 tax credit for first-time homebuyers.
Far from addressing the root problem that has caused the average home price to soar to record highs, Harris’s proposal to redistribute wealth and infuse the market with “free money” will accelerate the inflation of home prices. It wouldn’t make homes more affordable; it would make them less so. Harris knows this, but those cash giveaways are basically about buying votes.
The primary issue leading to record-high home price inflation is simple supply-and-demand economics. Therefore, it’s crucial that we lean into supply-side economics rather than creating more top-down government regulations and giveaways. This is the most effective way to facilitate a homebuilding boom and address the housing crisis.
And there is another factor that has been driving up home prices, as both Trump and JD Vance have made clear: the Biden/Harris administration’s open border policies. With at least 10 million illegal immigrants — and maybe twice that many — having been let into the country over the last three and a half years, the strain on communities across the country is immense, from New York City to Springfield, Ohio.
The burden of a massive number of migrants moving into an area that can’t absorb them is enormous. That includes not only healthcare systems and public resources but also housing when they’re competing with lower-income Americans in the same market. A huge inflow of migrant demand pushes up not just the price of homes but also the cost of rent.
Making matters worse, low-skilled migrants willing to work for less money put downward pressure on wages when not outright taking jobs from low-skilled Americans — all while simultaneously putting upward pressure on the cost of housing and rental costs. While businesses benefit from cheaper labor, lower-income wage earners — those folks that Harris and Walz say they care about — do not benefit.
Trump has raised the link between mass migration and housing prices to highlight yet another significant cause and effect resulting from the Biden/Harris open border policy. As Trump observed, “We also cannot ignore the impact that the flood of 21 million illegal aliens has had on driving up housing costs.” Likewise, Vance, in addressing the issue, has criticized Harris’s proposal as a plan that would only elevate home prices. He also pointed to mass migration, arguing, “It’s common sense; we can’t fix our housing crisis until we address the crisis at the border.”
Harris argues that more workers are an economic benefit. While our economy needs a strong labor market, mass illegal immigration is not the answer.
(Edited)