It's Economics 101: Increased demand with limited supply leads to higher prices.
Housing prices are too high. Both Donald Trump and Kamala Harris have recognized this reality and touted their plans to address it.
Harris's solution is -- wait for it -- yet another government giveaway: a $25,000 down payment for first-generation home buyers and a $10,000 tax credit for first-time home buyers.
Far from addressing the root problem that has caused the average home price to soar to record highs, Harris's proposal would only ensure that the problem lingered. It wouldn't make homes more affordable; it would make them less so.
That's because the primary issue leading to the record high prices is a home shortage. It's basic supply-and-demand economics. Therefore, leaning into supply-side economics rather than creating more top-down government regulations and giveaways would be the most effective way to facilitate a homebuilding boom.
However, there is another factor that has been driving up home prices, and it's a connection that Trump and his running mate, JD Vance, have been making only recently: the Biden/Harris administration's open border policies. With at least 10 million illegal immigrants -- and maybe twice that many -- having been let into the country over the last three and half years, the strain on communities across the country is immense, from New York City to Springfield, Ohio.
While much of the mainstream media has focused on Trump and Vance referencing unverified stories of Haitian migrants eating people's pets in Springfield, the real issue is being deliberately overlooked. That would be the negative impact of a massive number of migrants suddenly moving into an area that can't absorb them.
As Trump observed in remarks earlier this month, "We also cannot ignore the impact that the flood of 21 million illegal aliens has had on driving up housing costs." Likewise, Vance, in addressing the issue, has criticized Harris's proposal as a plan that would only elevate home prices. He also pointed to mass migration, arguing, "It's common sense; we can't fix our housing crisis until we address the crisis at the border."
Linking the problem of mass migration to the housing crisis is not a new concept. However, Trump has raised the link in his campaign to highlight yet another significant issue caused by Biden/Harris's lack of border enforcement. Often, when the problem of illegal immigration is raised, politicians will claim that more workers are an economic benefit. The trouble is, it's not obvious that mass illegal immigration is economically beneficial. For one, these low-skilled migrants take jobs away from low-skilled Americans. And while businesses may enjoy cheaper labor, it ends up hurting the economy by keeping wages lower on the bottom end. It's also a drain on the healthcare system and public resources.
When it comes to housing, a huge influx of migrants pushes up not just the price of homes but also the cost of rent. Those migrants who are in the country illegally won't necessarily be driving up home prices directly, but their presence drives up housing demand.
As much as the mainstream media decries Trump's perceived xenophobia, the failure of the Biden/Harris administration to secure our southern border has led to increased crime, strained social services, and higher home prices.