Immigrants also need homes, which naturally drives up housing prices.
In a debate with Minnesota Governor Tim Walz on Tuesday night, Ohio Sen. J.D. Vance, with characteristic candor, pointed to high levels of illegal immigration: Major factors behind soaring housing prices As a result, homeownership is increasingly out of reach for many Americans. Mr. Vance argued that the unstoppable flow of illegal immigration is increasing competition in the housing market and putting a squeeze on prices for Americans simply looking to secure a place to call home.
In his statement, Vance zeroes in on Vice President Kamala Harrisand criticized her role in an administration that he says allowed millions of illegal immigrants into the country. “We should deport these illegal immigrants who are competing for housing,” Vance declared, blaming the government for the housing crisis, which in his view was largely caused by them. .
There really shouldn't be much controversy about the idea of a surge in numbers. Increasing pressure on housing prices due to immigration. Immigrants need housing just like everyone else. As they increase, the demand for housing increases. And because people cannot bring their homes with them when they cross the border, housing prices skyrocket.
Still, Vance's argument is caused a howl of anger And false fact confirmation from the government New York Times.
Robert Reich even called it “absurd” and “bigoted.”
of new york times This statement is fact-checked: “There are Federal Reserve findings that we are happy to share after discussion, and indeed post on social media, that specifically link the increase in illegal immigration levels. It's immigration and high housing prices.'' They initially classified this as false, but after further consideration it was upgraded to simply misleading.
But, strangely, The fact check cites Federal Reserve research supporting Vance's claims.
“It is not clear what studies Mr. Vance was referring to in his remarks. Some Federal Reserve officials and studies suggest that immigration could push home prices to the brink. Research by dallas fed bank “An influx of people could put upward pressure on rents and house prices, especially in the short term until new supply becomes available.” and, The president of the Federal Reserve Bank of Minneapolis said: Immigrants “need a place to live, and their arrival in the United States likely increased demand for housing.”
So what was misleading? of times The real problem with Vance's point, he says, is that it is often raised by people who: wrong kind of people.
“However, most of the research linking housing costs to recent immigration comes from groups that advocate reducing immigration. Immigration Research Center” of times The newspaper's economic reporter, Fact Checker, wrote:
This is what logicians say ad hominem attack. Just because a group advocating immigration reduction conducts research does not mean that the research is flawed.
Liberals and libertarians say immigration raises housing prices
In any case, it is simply not true that most of the research linking house prices and immigration levels is done by immigration restrictionists. There is Many studies by progressive and liberal groups They argue that immigrants are driving up housing prices. Usually, this is framed as a defense of immigrants who uphold the values of their homeland.
Fuhrman links to a number of studies that make this point, so I'll briefly summarize them.
Study by the American Society/Council of America. and Partnership for a new American economy It found that America's 40 million immigrants “created $3.7 trillion in housing wealth.”
“They directly drive demand for housing through their purchasing power. America's 40 million immigrants drive housing demand in communities across the country, reflecting their demand not only for housing but also for locally produced goods and services. “They represent a powerful purchasing group that increases the value of I will explain.
of urban research institute's study found that “an increase in the number of immigrants equal to 1 percent of an MSA's total population is associated with a 0.8 percent increase in rents and a 0.8 percent increase in home prices.”
liberal economist david card A 2006 paper cited by Furman examined the relationship between immigration and home prices.
“This paper documents a strong positive association between immigrant and native-born average wages and home prices in U.S. states and metropolitan areas for the period 1970-2005.” claims.
Alex Nowras, Immigration Policy Analyst Cato Institute's Center for Global Freedom and Prosperityalso argues that immigrants are driving up “housing equity,” or house prices. Here's how to do it realtor magazine His findings were explained as follows:
“No market is more affected by immigration than real estate,” Nowras said during a session called “The Housing Market is International” at the REALTORS® Legislative Conference & Trade Expo. “Immigration's impact on the labor market is, at worst, one-tenth the impact on real estate,” he said, noting that immigrants are drawn to the construction industry at a much higher rate than native-born citizens. The homebuilding industry could benefit if immigration rates rise.
Nowras also said that research from the Cato Institute shows that at the local level, a 1 percent increase in the immigrant population equates to a 1 percent increase in rents. Also, 22.6 percent of the U.S. population, or 43.3 million people, are foreign-born, according to Census Bureau data, adding a huge influx of cash into the economy. Nowras noted that immigrants added $3.1 trillion to U.S. housing wealth in 2012, much of it in middle- to low-income counties.
There's more research here and here.
Of course, if you look carefully enough, you can find studies that make the opposite claim. some are Increased labor supply in the construction sector Immigration creates additional housing supply, pushing down prices. But the idea that linking increased immigration to rising house prices is irrational, biased, false, and misleading is simply ridiculous.
