Supply and Demand in Housing
The concept of supply and demand is fundamental to economics. However, when Republicans apply this straightforward idea to the housing market, it seems to perplex Democrats and their media allies.
Take Vice President J.D. Vance, for instance. During his 2024 campaign, he suggested that the Trump administration planned to reduce housing prices through mass deportations, a statement that garnered a lot of ridicule.
“In Springfield, Ohio, and in many communities nationwide, our schools and hospitals are overwhelmed, and housing costs are skyrocketing because millions of illegal immigrants are competing with Americans for limited housing,” Vance remarked in a debate against Gov. Tim Walz in October 2024.
Following his words, various headlines accused him of being “misleading” or outright false about the effects of immigration on housing. Fact-checkers certainly didn’t hold back in their criticisms.
Yet, it stands to reason that as demand for housing decreases, housing prices should follow suit—this is economics 101. A recent HUD report actually supports Vance’s claims, revealing that the foreign-born population has driven 100% of the rental demand growth in places like New York and Florida, contributing to over 60% growth across the country. Interestingly, an estimated 30% of this population consists of illegal immigrants.
Moreover, the situation is worsened by various blue states and cities that provide free housing and favorable loan terms to illegal immigrants, effectively sidelining lower-income Americans. HUD Secretary Scott Turner mentioned on FOX Business that the Biden administration had even implemented policies that made it easier for Afghan refugees to secure FHA loans than for Americans. In fact, Afghan refugees can often skip credit checks and some occupancy rules, according to Turner.
On the other side of the conversation, Mr. Vance responded to the notion that illegal immigrants are crucial for home construction during a 2024 New York Times sit-in.
“How do you plan to build all the necessary housing by getting rid of all the construction workers?” asked Lulu Garcia-Navarro.
“That’s a good question. Historically, during the 1960s when illegal immigration was low, Americans actually did build houses,” Vance answered with a hint of sarcasm to make his point.
“It’s puzzling—7 million men have completely left the workforce, and illegal immigrants are the ones building homes. The common notion that Americans won’t take those jobs usually comes down to the fact that they won’t work for minimal pay,” he added.
The principle remains: eliminate illegal immigration, reduce demand, and subsequently lower housing prices and rents. We could tackle supply issues by helping young Americans step into well-paying construction jobs and easing the regulations around new housing developments. It really isn’t overly complicated.
What Else Caught My Attention?
Queen Sabalenka acknowledged a significant issue!
‘Big advantage’: Top female tennis player calls transgender participation ‘unfair’
—
If supply and demand seem challenging, take a look at this flowchart.
Ingersoll: A straightforward flowchart shocks Texas Tech radicals.
—
Good for her.
Erica Kirk confronts conspiracy theorists spreading unfounded accusations regarding her husband’s assassination.
