During Tuesday evening's vice presidential debate, CBS News host Margaret Brennan seemed unaware of the growing body of research showing that large numbers of immigrants tend to raise housing costs and rents. It was. Sen. J.D. Vance (R-Ohio) promised to provide evidence after the debate.
“Senator…I would like to be clear. There are many factors that contribute to rising housing costs. What is the evidence that immigration is part of this problem?” Brennan asked Vance. .
“Well, there's a study from the Federal Reserve that we'll be posting on social media that delves into the relationship between increasing levels of immigration, especially illegal immigration, and rising home prices,” Vance said. answered.
After the debate, Vance posted: the study Federal Reserve remarks mentioned in a recent speech by Federal Reserve Board Member Michelle Bowman:
“Given the current low inventory of affordable housing, additional housing supply may take some time to materialize, so new “An influx of immigrants could put upward pressure on rents.”
Similarly, Vance also shared the study A paper published in the Journal of Housing Economics found a similar trend. The main thing is that mass immigration to the United States tends to increase housing costs.
“Immigrants flow into a particular country. [Metropolitan Statistical Area (MSAs)] “This is related to rising rents and home prices in that MSA, but also appears to be driving up rents and prices in neighboring MSAs,” the researchers noted.
We find that while increased immigration into a particular MSA is associated with higher rents and home prices in that MSA, it also appears to drive up rents and home prices in neighboring MSAs. The observed patterns in rental and housing price markets are consistent with native flight from immigrant-receiving regions, with larger spillover effects. [Emphasis added]
…
We argue that immigration can be an important driver of housing prices and rents, especially given their recent and projected contributions to U.S. population growth. in principle, Demand for housing from new immigrants and rising housing supply in metropolitan areas (where immigrants tend to settle) are expected to drive up rents and prices. (Saiz, 2007). [Emphasis added]
Vance also posted the study A report from the Congressional Budget Office (CBO) examining the broader impact of high levels of immigration on the American economy. One of those findings states that large numbers of immigrants typically drive up housing costs and rents.
“The research literature generally finds that increased immigration increases state and local spending, particularly on education, health care, and housing, more than revenue,” CBO said. “The impact varies widely by jurisdiction, depending on the size of the immigrant population and local policy choices regarding spending and taxation.”
Although Vance didn't mention it, Federal Reserve Chairman Jerome Powell made a similar admission in July of this year in an exchange with an Ohio senator.
“I'm sure there is a place in the country for new people to come into the country, and I'm sure that place will be found and there will be a place,” Powell said in response to a question from Mr. Vance. It's probably contributing to the market.” The relationship between housing prices and immigration.
Since President Joe Biden and Vice President Kamala Harris took office, the U.S. population has added nearly 7 million immigrants. At the same time, economists say Rising housing costs are currently hindering the decline in inflation.
John Binder is a reporter for Breitbart News. Please email jbinder@breitbart.com. Follow him on Twitter here.
