In a surprising move, former President and GOP candidate Donald Trump has put forward a new proposal aimed at curbing the rising home prices. He suggests implementing a ban on undocumented immigrants from being able to obtain home mortgages. Trump believes that this measure will contribute towards alleviating the increasing costs of housing.
During a policy speech to the Economic Club of New York, Trump made these remarks. He connected undocumented immigration to rising housing costs, despite evidence indicating that such buyers only make up a small portion of U.S. home sales. The Wall Street Journal reported on this.
“Home loans to undocumented people living in the U.S. are legal but they aren’t especially common. Between 5,000 and 6,000 mortgages of this kind were issued last year, according to estimates from researchers at the Urban Institute in Washington. Overall, lenders issued more than 3.4 million mortgages to all home purchasers in 2023, federal government data shows.”
Trump did not provide details on how he plans to enforce the suggested ban. This proposal has faced backlash from advocates of affordable housing and real estate experts who believe it will not effectively tackle the larger issue of housing affordability.
In an interview with WSJ, David Dworkin, the president of the National Housing Conference, criticized the focus of the debate, stating that it is centered around a “minuscule segment of the market” rather than addressing the more significant issues that impact home buyers.
In his speech, Trump also recommended additional actions to lower housing costs. He proposed reducing regulations for builders and increasing construction on federal land. These suggestions align with the ideas previously presented by Vice President Kamala Harris, who also prioritized addressing housing affordability throughout her campaign.
Other economic proposals from Trump’s speech
In addition to the mortgage ban, Trump outlined several other economic proposals, as reported by Reuters:
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- Sovereign Wealth Fund: Trump proposes a fund for infrastructure projects, funded by tariffs.
- Tax cuts: Cut corporate tax to 15% for U.S. manufacturers; eliminate taxes on tips.
- Elon Musk as Efficiency Czar: X CEO to lead a panel to eliminate federal waste.
- Energy Emergency: National emergency to boost domestic energy.
- Housing Affordability: Open federal land for low-tax, low-regulation housing zones.
