Immigration and the Housing Shortage: The View from America, By Chris Knight (Florida)

James Reed writing at the blog today, has discussed the question of negative gearing versus mass immigration as factors impacting upon housing affordability, with mass immigration having a more decisive impact. It is worth noting that in the recent vice-presidential debate, the issue of the impact of immigration upon housing prices came up, with Trump's running mate, J.D. Vance saying that the migration crisis led to higher prices. Naturally the immigration mad Tim Walz denied this, and Vance was fact checked. He said that he would post some expert opinion on X, which he did:

Michelle W. Bowman, a member of the Federal Reserve Board of Governors has said: "Finally, there is a risk that strong consumer demand for services, increased immigration, and continued labor market tightness could lead to persistently high core services inflation. Given the current low inventory of affordable housing, 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."

As well the Dallas Fed. Reached the same conclusion:

"Higher immigration represents a labor supply shock, which should be disinflationary. But immigrants are also consumers and add to aggregate demand. While certain sectors that extensively depend on immigrants should see costs and prices fall—for example, landscaping and child care—the population influx could put upward pressure on rents and house prices, particularly in the short run before new supply can be built."

Mass immigration then does serve to displace locals from the housing and accommodation market. What is true for America, is also true for Australia.

https://www.theblaze.com/news/jd-vance-evidence-immigrants-housing-prices-vp-debate

"Republican vice presidential nominee Sen. JD Vance (Ohio) posted evidence on Wednesday proving that he was correct when connecting the migrant crisis to rising housing prices during the VP debate.

While discussing inflation and the rising cost of housing, Gov. Tim Walz argued that immigrants shouldn't be blamed for the growing problem of out-of-control housing costs and housing inventory issues.

'The thing that has most turned housing into a commodity is giving it away to millions upon millions of people who have no legal right to be here.'

Vance agreed and said he knows exactly where blame belongs: at the feet of Vice President Kamala Harris.

"We don't want to blame immigrants for higher housing prices. But 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. It's why we have massive increases in home prices that have happened right alongside massive increases in illegal alien populations under Kamala Harris' leadership," Vance said.

"We have a lot of Americans that need homes. We should be kicking out illegal immigrants who are competing for those homes, and we should be building more homes for the American citizens who deserve to be here," he added.

The debate moderators — Norah O'Donnell and Margaret Brennan — then gave Walz an opportunity to respond to Vance's accusation.

To no surprise, Walz claimed it is "not true," before complaining that Vance did not receive a fact-check. So what did the moderators do? They proceeded to fact-check Vance.

"Senator, on that point, I'd like for you to clarify. There are many contributing factors to high housing costs. What evidence do you have that migrants are part of this problem?" Brennan asked Vance.

Vance immediately cited remarks from the Federal Reserve, promising to post the receipts on social media when the debate concluded. The study, he explained, "really drills down on the connection between increased levels of migration, especially illegal immigration, and higher housing prices."

"Now, of course, Margaret, that's not the entire driver of higher housing prices. It's also the regulatory regime of Kamala Harris," Vance continued. "Look, we are a country of builders. We're a country of doers. We're a country of explorers. But we increasingly have a federal administration that makes it harder to develop our resources, makes it harder to build things, and wants to throw people in jail for not doing everything exactly as Kamala Harris says that they have to do."

"And what that means is that you have a lot of people who would love to build homes who aren't able to build homes," he added. "We should get out of this idea of housing as a commodity. But the thing that has most turned housing into a commodity is giving it away to millions upon millions of people who have no legal right to be here."

After the debate, Vance made good on his promise, posting comments on X from Michelle W. Bowman, a member of the Federal Reserve Board of Governors.

In May, Bowman spoke at the Massachusetts Bankers Association Annual Convention in Key Biscayne, Florida, where she said the "inflow of new immigrants" puts "upward pressure" on the housing market.

Speaking on the state of the economy, Bowman explained:

Finally, there is a risk that strong consumer demand for services, increased immigration, and continued labor market tightness could lead to persistently high core services inflation. Given the current low inventory of affordable housing, 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.

The Dallas Fed, moreover, has drawn the same conclusion.

"Higher immigration represents a labor supply shock, which should be disinflationary. But immigrants are also consumers and add to aggregate demand. While certain sectors that extensively depend on immigrants should see costs and prices fall—for example, landscaping and child care—the population influx could put upward pressure on rents and house prices, particularly in the short run before new supply can be built," the Dallas Fed explained in July.

"As promised," Vance said on X."