Trump says deportations will lower housing costs. The reality is complicated.

Published On Nov 9, 2024, 7:40 AM

President-elect Donald Trump has proposed that deportations will lower housing costs by reducing demand for housing from immigrants. However, experts argue that the link between immigration and housing costs is complex. Immigrants contribute significantly to the construction workforce, and tighter immigration policies could lead to labor shortages, increasing construction costs and further exacerbating the housing supply crisis. Historical data show that previous immigration crackdowns have led to reduced housing supply and increased prices. While Trump's approach may focus on deregulation to boost housing supply, potential mass deportations might have adverse effects on the construction sector and overall housing market.

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Given the impact of potential deportations on the construction workforce, which is heavily reliant on immigrant labor, the housing market could face increased costs and delays in homebuilding. Additionally, if policies create uncertainty in the labor market, it may hinder investment in housing. Overall, this suggests a negative outlook for housing-related sectors.

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