How Trump's Tariffs and Immigration Policies Could Make Housing Even More Expensive (July 1, 2025 )
July 1, 2025 — Donald Trump’s economic and immigration policies could unintentionally deepen the American housing affordability crisis.
Broad tariffs on construction materials such as steel and lumber may significantly increase building costs, while mass deportations could shrink the immigrant workforce that plays a major role in construction and development. 30% of U.S. construction workers are immigrants — and in states like Texas, which had been a rare bright spot for housing affordability, nearly 60% of immigrant construction workers are undocumented.
Together, these policies risk slowing new housing projects and driving up rents and home prices even further despite widespread demands for relief. Although the administration has proposed opening federal lands for development, many argue that local deregulation and zoning reform remain the most effective ways to expand housing supply. Without a major shift in strategy, the rising cost of living could become a significant political liability.
| https://reason.com/2025/06/01/the-coming-housing-crisis/ |