Vice President JD Vance said in a recent television interview that the United States is facing a major housing affordability crisis driven by two long-term trends: years of under-construction in the housing sector and demographic pressures he attributes to increased immigration. His remarks came during a discussion with Fox News host Sean Hannity, in which the vice president outlined the administration’s view of what has caused home prices and rents to rise faster than wages in many parts of the country.

The interview, which covered economic concerns, labor markets, and construction shortages, highlighted one of the administration’s central arguments heading into the new year — that stabilizing the housing market will require both expanding the housing supply and addressing demographic changes that are affecting demand.

Vance’s comments touched off renewed public debate about the underlying causes of the housing shortage, an issue that affects not only large metropolitan areas but also many rural and suburban communities where inventories remain historically low.

Vance Highlights Housing Affordability Concerns Among Younger Americans

During the interview, Vance pointed to younger Americans as particularly affected by soaring prices. He said that many are struggling to buy their first home, even when employed and earning stable incomes.

“A lot of young people are saying housing is way too expensive,” Vance said, describing housing as one of the biggest obstacles to financial stability. He argued that an imbalance between supply and demand has pushed the market beyond what many families can reasonably afford.

Home prices in the United States have increased significantly over the past decade, with especially sharp spikes during the COVID-19 pandemic due to low mortgage rates, high demand, construction delays, and supply chain disruptions. Even as interest rates rose in subsequent years, home prices in many regions remained elevated due to limited inventory and high demand.

Link Between Population Growth and Housing Supply

Vance argued that part of the pressure on the housing supply stems from population growth fueled by immigration — specifically, unauthorized immigration. He claimed that the presence of millions of undocumented immigrants contributes to increased housing demand, which he said has outpaced the construction of new homes.

“Why is housing so expensive? Because we flooded the country with 30 million illegal immigrants,” he said during the interview. “They’re taking houses that ought to go to American citizens. And at the same time, we weren’t building enough new houses to begin with, even for the population we already had.”

The vice president presented immigration as one component of the supply-demand imbalance, though economists continue to debate the exact impact immigration has on the housing market. While population growth naturally increases demand for housing, academic researchers often point to a complex combination of factors — such as zoning restrictions, construction workforce shortages, materials costs, and uneven geographic development — that shape affordability outcomes.

Underbuilding: A Longstanding National Issue

Beyond demographic changes, Vance emphasized that inadequate housing construction has been an issue for many years. “We weren’t building enough new houses to begin with,” he said, arguing that the lack of construction predates recent increases in immigration.

Numerous housing experts have identified underbuilding as a key driver of the crisis. The National Association of Realtors, construction economists, and federal housing agencies have all noted that the U.S. has built fewer homes relative to population growth than at any time since the mid-20th century.

This shortage stems from several factors:

Labor constraints in the construction industry
Rising costs of building materials
Zoning and land-use restrictions in major metropolitan areas
Lengthy permitting processes
Reduced private investment in affordable housing
The result is a supply gap estimated in the millions, contributing to rising prices even in cities where population growth has slowed.

During the interview, Vance said the administration aims to make it “easier to build houses” by reducing regulatory barriers and encouraging the development of both residential and industrial projects, which he said would support job growth as well.

Connection Between Housing, Jobs, and Affordability

Vance used the interview to outline his view that housing affordability cannot be separated from broader economic conditions. He argued that higher wages, more employment opportunities, and a stronger manufacturing base would all play a role in restoring balance to the market.

“What we’re doing is trying to make it easier to build houses, trying to make it easier to build factories and things like that so that people have good jobs,” he said. “Working people’s wages are going up, and that’s how we ultimately chip away at the affordability crisis — we make an economy where people can afford to buy the things they need.”

While wage growth has accelerated in some sectors, economists continue to debate whether rising incomes are keeping pace with inflation and cost-of-living increases, particularly in the housing sector.

Comparisons of Housing Prices Under Different Administrations

Vance contrasted recent housing trends with those of previous presidential administrations. He said that the cost of a new home “literally doubled in four years” under the Biden administration, describing the increase as far above historical norms.

He compared this to housing and rent prices during the Trump administration, saying they rose “about 1 to 2 percent,” which he characterized as a healthier and more stable level.

Economic analysts note that national housing prices are influenced by a wide range of variables, including interest rates, supply constraints, demand spikes, construction labor availability, and global economic conditions. While political leadership can influence some aspects of housing policy, economists warn against attributing price changes solely to presidential terms, given the complexity of the housing market.

Nonetheless, affordability metrics — including median home price to income ratios — show that buyers face some of the toughest conditions in decades.

The Administration’s Proposed Path Forward

Vance said that the administration believes the United States needs to build several million new homes to stabilize the market. He cited an estimate of approximately 5 million new housing units as the threshold needed to meet long-term demand and restore affordability for middle-class and working-class families.

“We probably need to build about 5 million new homes,” he told Hannity, framing the issue as a national challenge that requires cooperation between federal, state, and local governments.

Housing agencies and industry groups have produced similar estimates, suggesting that a significant increase in construction — combined with zoning reform and public-private partnerships — is necessary to rebalance supply.

The administration has signaled interest in supporting:

Expansion of workforce training for construction jobs
Streamlined permitting processes
Incentives for builders to create affordable housing
Reduced zoning barriers in high-demand metro areas
Infrastructure improvements to support development
However, these proposals would require coordinated action and sustained investment to achieve results.

Broader Debate Over Immigration and Economic Impacts

Vance’s comments also touched on the wider debate surrounding immigration policy and domestic economic priorities. His claim that undocumented immigrants significantly influence housing prices has been met with differing opinions among economists, policymakers, and immigration researchers.

Some argue that increased demand from any population growth can add pressure to housing markets, especially in areas with limited supply. Others emphasize that immigrants — both documented and undocumented — contribute labor, entrepreneurship, and tax revenue, while also participating in the housing sector in varied ways, including renting and homeownership.

The issue remains politically charged, with broader implications for labor markets, social services, and economic planning.

Housing Crisis Remains a Top Voter Concern

Recent national surveys show that housing affordability ranks among the top concerns for voters alongside inflation, healthcare costs, and job security. Rising mortgage rates and limited inventories have left many families delaying home purchases, relocating to lower-cost regions, or remaining renters longer than planned.

Vance’s remarks reflect the administration’s attempt to address these anxieties and frame the issue as a central policy priority.

As debates continue over the causes of the crisis — whether rooted in immigration, underbuilding, or broader economic dynamics — the challenge remains clear: millions of Americans face an increasingly difficult path to homeownership.