Additional Coverage:
- JD Vance says deporting 20 million people is part of the solution to high housing costs (newsbreak.com)
Sen. JD Vance of Ohio, a Republican known for his rigid views on immigration, attributes the housing affordability crisis not only to high interest rates but also to the presence of immigrants.
Vance has suggested that deporting 20 million immigrants could alleviate housing costs, a stance he echoed in a recent tweet. This marks a stark shift from his earlier skepticism about the effectiveness of strict immigration policies, as highlighted during the 2016 presidential campaign where he doubted the economic benefits of building a border wall.
Since Donald Trump’s unexpected victory in 2016, Vance has aligned closer with Trump’s hardline immigration policies, even supporting the mass deportation idea Trump proposed during his campaign to help solve the housing crisis. The argument is that fewer immigrants would reduce the demand for housing, potentially lowering costs for American citizens.
Trump’s campaign has also stated that the high number of immigrants is contributing to rising housing costs. Economically, however, many experts argue that such a large-scale deportation would actually heightea inflation and interest rates due to a reduced labor force, particularly within the construction industry where there is already a worker shortage. This would hinder efforts to boost housing supply, crucial in addressing the housing shortfall.
Moreover, Trump’s trade policies and significant tax cuts could force the Federal Reserve to maintain high interest rates, exacerbating the housing affordability issue. America’s housing crisis has been years in the making, exacerbated by restrictive land-use policies and insufficient construction post-2008 financial crisis.
On the policy front, Trump has not heavily prioritized housing despite criticizing President Biden’s handling of the issue. While in office, Trump proposed budget cuts that would have significantly reduced housing assistance and community development funding. Similarly, Vance has supported significant budget reductions for the Department of Housing and Urban Development (HUD).
Under Trump, there were also rollbacks in fair housing protections and resistance against policies that would allow denser housing constructions in suburban areas, which experts view as essential to resolving the housing supply shortage. This overall approach reflects a broader policy perspective that critics say could further complicate efforts to make housing more accessible and affordable.