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From Newsweek: A recent report from J.P. Morgan highlights various factors influencing the U.S. housing market. The influx of undocumented immigrants, alongside supply constraints and interest rate pressures, may be contributing to the ongoing housing shortage in 2025.
The U.S. housing market faces a critical supply shortage, with the National Association of Home Builders (NAHB) estimating a deficit of around 1.5 million homes. The NAHB attributes this shortage to “persistent supply-side constraints, including costly and inefficient tax, land, and construction policies.”
But a new report from J.P. Morgan suggests undocumented immigrants could be “ramping up housing demand” and contributing to the supply shortage, echoing concerns previously raised by President Donald Trump and his administration.
J.P. Morgan’s study, released on February 10, offers insights into the complex dynamics of the U.S. housing market for 2025. The report highlights key factors contributing to the housing shortage, including supply tightness and underbuilding.
Using the same number that the media has used for the past 20 years, the J.P. Morgan study wrote, “It’s estimated that there are 11.2 million undocumented immigrants in the U.S., and that number may be higher. This could be ramping up housing demand more than figures suggest, resulting in a shortage of stock.”
It should be noted that about 11 million illegal aliens came into the United States during the four years of Biden administration alone, on top of the those already in the country.
Another key issue affecting the housing market is that many homeowners are not selling due to high interest rates.
John Sim, head of Securitized Products Research at J.P. Morgan, warned, “The situation is not going to change until we get mortgage rates back down toward 5%, or even lower.”
J.P. Morgan report suggests undocumented immigrants may contribute to U.S. housing demand, impacting the housing shortage. https://t.co/Rj3WcWT0c1
— Newsweek (@Newsweek) February 11, 2025
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