Treasury Secretary’s Comments on Rent and Immigration

Treasury Secretary Scott Bessent stated that the mass deportation policies under President Donald Trump have had a role in decreasing rents for American workers and the lower middle class.

Last month, apartment rents decreased by 1.1% year-over-year and 5.2% compared to the same time two years ago, which marked a peak in rental prices.

During an interview with Fox Business Channel, Bessent noted that deportations were a factor in lowering rents, referencing a study from the Wharton School at the University of Pennsylvania that established a notable link between immigration levels and housing costs.

Bessent remarked, “Rents are decreasing. It’s a point the Biden administration tends to avoid: that high levels of unrestricted immigration have inflated rents, particularly affecting working Americans.”

Recent research from the Wharton School suggests that for every 1% rise in population, rents can go up by 1%. So, President Trump’s actions to tighten border security and deport over 2 million undocumented immigrants have contributed to the current drop in rents. I believe these decreases will persist this year, especially since we lowered interest rates, which have also reduced mortgage rates.

On the same day, Vice President J.D. Vance spoke to a crowd in Allentown, Pennsylvania, asserting that housing prices and rents have surged in the last four years due to former President Joe Biden’s extensive immigration policies, which put American citizens in competition for housing with new immigrants.

Vance expressed some surprise at Democratic claims regarding affordability, saying, “They’re talking about how costs are rising—housing is getting pricier. And, honestly, they’re not wrong. But this has been largely a consequence of their own actions. During Biden’s administration, housing prices doubled largely due to the admission of 20 million illegal immigrants, which took homes away from American citizens.”

HUD Secretary Scott Turner indicated that the influx of millions of immigrants has led to soaring housing costs, emphasizing that “there is a correlation, not a coincidence.”

A HUD report released recently indicated that the influx of immigrants is worsening the situation for low-income Americans who don’t receive public assistance.

The study documented that from 2021 to 2024, the foreign-born population in the U.S. expanded by over 6 million, marking a historically significant increase in such a short span.

This rise in immigrant households has significantly raised demand for housing, subsequently driving up home prices. The report noted that in some areas, immigrants account for nearly all of the recent increases in housing demand.