Trump's Deportation Plans: Impact on Housing Affordability

As mortgage rates hover between 6% and 7% amidst limited housing inventory, homeownership has become increasingly challenging. President-elect Donald Trump's campaign pledge to address affordability through mass deportations has raised concerns among real estate experts.

Immigrant Labor in Construction

Mortgage expert Matt Garland highlights the significant contribution of immigrants to the U.S. construction workforce. Deporting undocumented immigrants at the scale proposed by Trump's administration could disrupt the industry.

Construction Costs and Housing Supply

Undocumented workers constitute nearly 14% of the construction workforce. Garland predicts that if the proposed deportations are implemented, labor and supply costs for homebuilders will continue to rise. This could further reduce the already constrained supply of homes.

Impact on Buyers and Consumers

Garland emphasizes that the shortage of new construction homes is already a yearly issue. Increased costs due to labor challenges will exacerbate the already high home prices. Ultimately, the burden will fall on consumers as builders and banks pass off costs.

Navigating the Housing Market

In the face of Trump's impending presidency, Garland advises consumers to assess their credit, capital, and capacity before navigating the housing market. Patience and understanding market trends will be crucial for prospective buyers.

Additional Considerations

While some buyers will find solutions to purchase homes, Garland cautions that reduced buyer demand due to affordability challenges will persist. Additionally, the limited housing inventory remains a significant issue. Once interest rates decline, demand is expected to surge again.

Financial Planning for the Future

To minimize uncertainty in the housing market, Garland recommends staying informed, adapting to market fluctuations, and planning strategically. By focusing on wealth-building initiatives and understanding financial concepts, individuals can secure their financial futures.