Impact of President Biden's Mass Migration Policy on Housing Inflation
President Joe Biden's mass migration policy is causing housing inflation, leading to higher interest rates and mortgage rates. Industry executives attribute the lack of housing price drop to increased immigration, which benefits landlords and housing investors but diverts investment from productivity-enhancing areas. Federal Reserve Bank presidents have expressed concerns about the impact of immigration on inflation and interest rates. The influx of over 10 million migrants since 2021 has created a demand shock, driving up housing demand and prices. The Federal Reserve is trying to combat inflation by raising interest rates, impacting homeowners and renters. Younger Americans face the burden of higher mortgage rates and reduced homeownership prospects due to the immigration-driven inflation.
Key Points
- Increased immigration driving up housing demand and prices
- Federal Reserve raising interest rates to combat inflation
- Impact on younger Americans' ability to afford homes
Pros
- Increased immigration has created a consumer 'demand shock', benefiting retailers, landowners, and the food industry.
- Higher housing prices have led to a boom for landlords and housing investors.
Cons
- Younger Americans are facing higher mortgage rates and reduced homeownership prospects.
- Diversion of investment from productivity-enhancing areas to real estate.