Overview
During Tuesday night’s vice presidential debate, GOP candidate J.D. Vance argued that illegal immigration is contributing to rising housing costs across the United States. When challenged by the moderator, Vance referenced a Federal Reserve study supporting his claims, which he later shared online.
Why It Matters
The housing affordability crisis is a significant concern for American families, and the debate over immigration policies adds a new dimension to understanding the economic pressures driving these rising costs.
Who It Impacts
American homebuyers and renters, particularly those in competitive markets, face increased competition and higher prices due to a combination of factors, including immigration and housing shortages.
At the vice presidential debate on Tuesday night, GOP candidate J.D. Vance sparked a heated exchange by claiming that illegal immigration is a significant driver of the skyrocketing housing prices in the United States. Vance attributed much of the housing crisis to the influx of “millions of illegal aliens” and criticized Vice President Kamala Harris for her handling of the southern border, which he argues has exacerbated the problem.
Vance, speaking on the issue, remarked, “We do want to blame Kamala Harris for letting in millions of illegal aliens into this country, which does drive up costs, Tim. Twenty-five million illegal aliens competing with Americans for scarce homes is one of the most significant drivers of home prices in the country.” He went on to argue that Americans in need of homes are being forced to compete with undocumented immigrants for an already limited housing supply. Vance called for policies that would both remove illegal immigrants and encourage homebuilding for U.S. citizens.
Moderator Margaret Brennan challenged Vance on his claims, asking for evidence to support his argument. Vance responded by referencing a Federal Reserve study, which he promised to share after the debate. “There’s a Federal Reserve study that we’re happy to share after the debate,” Vance replied. “We’ll put it up on social media. Actually, that really drills down on the connection between increased levels of migration, especially illegal immigration, and higher housing prices.”
As promised earlier tonight, here is Michelle Bowman of the Federal Reserve Board of Governors:
“Given the current low inventory of affordable housing, the inflow of new immigrants to some geographic areas could result in upward pressure on rents.”https://t.co/dfO0wFmyPs pic.twitter.com/KfDjPaZC7G
— JD Vance (@JDVance) October 2, 2024
Later that evening, Vance made good on his promise, posting remarks from Michelle W. Bowman, a member of the Federal Reserve Board of Governors, which aligned with his claims. Bowman’s speech, delivered at the Massachusetts Bankers Association Annual Convention in May, warned that “the inflow of new immigrants to some geographic areas could result in upward pressure on rents, as additional housing supply may take time to materialize.” She also noted that this, combined with tight labor markets and elevated wage growth, was contributing to inflationary pressures in the housing sector.
Vance didn’t stop at blaming immigration alone, also citing what he called burdensome regulations that hinder construction efforts. “We are a country of builders. We’re a country of doers,” Vance said, lamenting that federal regulations under the Biden-Harris administration have made it more difficult for developers to meet the growing demand for housing. He pointed to these regulatory barriers as another key factor contributing to the housing shortage.
The combination of increasing demand for housing, driven partly by immigration, and regulatory challenges, has, according to Vance, created a perfect storm for the housing market. He called on lawmakers to address these issues not just through immigration reform but by creating a more favorable environment for construction and development.
Vance’s remarks come at a time when Americans across the country are feeling the strain of rising housing costs, particularly in urban centers. While many factors contribute to these price increases, Vance’s argument that immigration plays a role has reignited debate over the broader impacts of border control policies on the economy. For many Americans struggling to find affordable housing, this discussion hits close to home and may shape public opinion as the election nears.
