It appears the Trump Administration's immigration policies are having an important effect on housing. President Trump's crackdown on undocumented immigrants, both arresting more immigrants at the border and deporting those already in the United States, has led to a depletion of the house framing labor market in the country.
The decrease in the supply of labor has led to an increase in the price of houses across America. The supply of new houses has slowed while the cost of houses being built has increased significantly. The shortage of construction labor has been a major issue since the recent recession, but it has intensified since Trump took office in January. House framing is the prime example of this effect, as framing labor is consists of one of the highest concentrations of immigrant Hispanics in the housing industry.
Our Verdict: If housing costs continue to rise, it will be interesting to see how the Trump Administration alters its policies to increase the supply of construction labor in the country. Proposed trade policies by President Trump will only worsen the issue, creating tariffs for importing inputs that go into building houses.
For now, it is unclear if any policies will change, as much of the base that supports President Trump have no intention of buying new homes anytime soon. As such, they would prefer to continue limiting immigration and increasing deportations, even if housing prices continue to rise. By catering to his base, the president risks losing support of some of his weaker supporters.