Mass Deportations Could Impact Housing Market, Experts Say
Mortgage rates hovering between 6% and 7%, coupled with limited housing inventory, have made purchasing a home challenging. Amidst this, President-elect Donald Trump's plans for mass deportations have raised concerns among real estate professionals.
According to Matt Garland, known as the Mortgage Guy, immigrants constitute a significant portion of the US construction workforce. Mass deportations could lead to a labor shortage, driving up construction costs and exacerbating the already constrained housing supply.
The Department of Homeland Security estimates that 11 million undocumented immigrants reside in the US, 90% of whom are working-age. Additionally, nearly 14% of construction workers are undocumented, as per the American Immigration Council.
Garland anticipates that deportations will increase housing expenses, making it even more difficult for consumers to qualify for and afford homes. "The shortage of new-construction homes will worsen," he warns.
As Trump assumes office, his administration will grapple with persistent high housing prices. Garland advises potential buyers to be cautious and thoroughly assess the market before making a decision. He emphasizes patience and the importance of educating oneself on credit, capital, and resources.
"Be focused and learn the trends," Garland says. "You'll be able to spot the right opportunities and make informed decisions."