Several factors are contributing to high mortgage rates in the United States, including low supply, which appears to have been impacted by the surging levels of both unlawful and lawful migration in recent years.
“While the long-run effect of increased immigration on inflation is unclear, immigrants nonetheless need a place to live, and their arrival in the U.S. has likely also increased demand for housing,” said Neel Kashkari, president and CEO of the Federal Reserve Bank of Minneapolis, earlier this week in a news release.
The foreign-born population of the United States has increased by 6.4 million since President Joe Biden took office, putting it at over 51.4 million people or roughly 15.5% of the total population, as reported previously by The Dallas Express.
Unsurprisingly, the National Association of Realtors says that the United States currently has a housing shortage of between 5.5 million and 6.8 million units, The Hill reported.
Relatedly, Biden’s Department of Housing and Urban Development (HUD) tweaked its participation requirements to allow unlawful migrants to become eligible for HUD vouchers, assisting them so they can become or remain homeowners.
A study published by the Journal of Urban Economics found that an increase of 1% in the U.S. population results in a corresponding 1% increase in rental prices. It also found that 94% of migrants between 2000 and 2010, both lawful and unlawful, settled in urban areas, consequently pushing up home prices and rent.
Biden’s policies have allegedly contributed to high levels of unlawful migration, as extensively reported by DX. Should former President Donald Trump defeat Biden in November’s presidential election, some experts believe that policy changes could significantly impact the housing market.
“Trump’s previous term saw pressure on the Federal Reserve to keep interest rates low to support economic growth. A second term could continue to see a preference for lower interest rates, making mortgages more affordable and potentially boosting the housing market. However, this is contingent on the broader economic conditions and the Federal Reserve’s independent assessments,” said EZ Sell Homebuyers founder Mike Wall, per Yahoo Finance.
Trump has vowed to initiate mass deportations of unlawful migrants if he is reelected, reported The Conversation.
