A Phil Hall Op-Ed: If you follow Elon Musk on his social media platform X (formerly Twitter), you are aware of his critical comments on how the Biden administration is handling the southern border. On Jan. 4, Musk posted this comment: “At this point, there is no question that this administration is actively facilitating illegal immigration. The numbers speak for themselves.” The message was accompanied by an infographic to support this argument.
While Musk is hardly alone in raising concern about the influx of illegal immigrants into the country, he is mostly alone in voicing apprehension regarding a problem that few people publicly acknowledged: where are these people going to live?
On Jan. 6, Musk offered this observation: “The US construction industry can increase available housing by 1% to 2% per year. But the US population is only 330M out of 8B. So if just ~4% of Earth moves here, housing would need to double, which is impossible, causing a massive homeless problem and house prices to be astronomically unaffordable.”
Musk is many things, but a housing economist is not one of them. For starters, the foundation of his argument is specious – roughly 4% of the world’s population is not moving into this country, and certainly not all at once. And while too many people have flooded into the country illegally since Biden took office, they are not stepping out of the Rio Grande and scanning Zillow or Redfin in search of a new home to buy. Illegal immigration is not going to create a price spike that will make residential property “astronomically unaffordable.”
Where Musk is closer to reality, however, is his fear about a “massive homeless problem.” We already have that – federal statistics determined the homeless spiked by more than 12% last year, reaching 653,104 people. And many cities that are absorbing the new illegal immigrants are putting them in homeless shelters, thus crowding out many Americans that relied on these facilities to avoid having to sleep on the streets.
There is no organized system of temporary housing for the new illegal immigrants. Some localities are resorting to improvised solutions that include renting hotels, sticking these people into empty buildings or trying to fob them off on other communities. None of these approaches are sustainable.
It is not being cynical to assume the overwhelming number of illegal immigrants who arrived during the Biden presidency will not be deported back to their countries of origin, and that circles back to Musk’s concern of where they will be living once they decide to put down roots. Considering their economic status, the obvious answer – and one that Musk overlooked – is affordable rental housing. But that type of housing is already in short supply and the multifamily properties that are mostly being constructed today are either market rate or luxury rentals – affordable housing is not a boom market and too many communities have residents who are willing to vigorously fight against having such properties as neighbors.
Closing the border needs to be done, of course, but we also need answers on housing those who are already here. The fact that Elon Musk is the only prominent figure speaking about this issue is not comforting.
Phil Hall is editor of Weekly Real Estate News. He can be reached at [email protected].
Photo by Thomas Hawk / Flickr Creative Commons
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My question is, where are these illegals going to work so they will have money to pay rent?
Another good point. I agree with this article and that more famous people should be speaking out. I think they fear backlash. Sad when speaking the truth in a free country gets you bad publicity. Sad when newspapers drive our country, letting few with other opinions rise above.
Some of those illegals are not coming to work. Some that have been interviewed by Mexican TV media have clearly stated that they are coming for the free handouts and that they are not going to work. They expect to be taken care off.
You are so right Rosa. They come here to be taken care of from cradle to grave as well as being able to bring in their relatives and the relatives relatives into this country. The very obvious answer is to lock the border down and the millions who have been treated to a all expense paid vacation with all the freebies be sent back to the border to wait until they can enter the country legally or send them back to where ever they came from COD. Big government needs to start enforcing the law instead of circumventing it. Birthright law needs to be expunged as well. WAKE UP AMERICA!!!!
Elon, rich business people like yourself should be part of the solution and develop low income housing and communities that sustain themselves so not to put a burden on over populated cities, them you’ll also create an employee pool everyone wins.
Also what about large US corporations helping out at the boarder with finances to help screen the people who would be of value to the US employers?
Good news! Elon has developed a very low cost fast erecting home that could help. Main problem is the millions coming here intend to be supported by WE THE PEOPLE! I see no jobs for children, illiterate and gangsters- just the P O S and crowds intent to create Dim voters at some point!
It is not Elon’s responsibility to come up with solution to this mess that this administration created. You should be asking Biden to figure it out since he is the one letting them all in.
100%
The idea that the current administration created the housing issue is incorrect and illogical. This situation has developed over decades. Congress did not have the grit to address it. Congress still does not have the willpower to overcome differences in both parties and pass legislation that addresses housing.
The housing solution is very simple to solve for the existing, legal citizens, as well as for those that have illegally entered the US. First & foremost, the only reason that new housing isn’t being provided as or when needed is because of NIMBY’s or politicians that are imposing restrictive conditions in the entitlement process and/or their permitting fees. In CA, before the first shovel can enter the dirt for a recently approved subdivision, the aver fees/house are close to $100K! Fees, not including the other “site work”. In SF or Oakland 3,4,5,7 years just to get thru the entitlement & approval process? Come on ppl; its who you vote for that determines housing stock. As for illegals, if existing laws are enforced, plenty of housing. Remember: citizens pay taxes for all of these services, including Elon Musk who has paid more in one year than any other citizen. He is doing his part as are all other tax paying ppl.
So where do people who are displaced from affordable rentals go? Homeless or up. Could be a trickle up not down scenario. He is not wrong. Lodging isn’t going to just appear.
These immigrants like the immigrants of the past century or more will do the jobs that Americans are unwilling to perform. Without these immigrants fast food chains will close, vegetables will rot in the fields. cows will go un-milked, etc. And if Congress ever began to think through solutions, it would realize we need better control, but also much more improved processing. But they are worried about petty stupidity. And Dreamers are the future of this country. accept that fact. 50% of current high tech industries CEO’s are immigrants or foreigners. Yes, we lack housing but that problem is an economic problem caused by corporate greed and a lack of willingness in this country to really solve problems and pay attention to details that support the common person versus making billionaires trillionaires.
HA HA HA HA HAA, Please have a reality check, read the majority of comments, quit drinking their koolaid and be sure you know whaat’s in the pipe you are smoking.
Has Elon Musk visited any new home construction sites or any one thinking immigrants are not here to work. The majority of construction workers are immigrants and very hard working.
Simple solution: Massive deportation ASAP.
Wow, I’m impressed WRE a real estate source has an article about the illegal “migrant “ invasion. No one allowing the insane #s coming illegally here cares what happens to the illegals or the cities, states etc. that suffer because of them. Their end game is to destroy America, where we become a third world, mired in poverty, crime & corruption.
Housing below market rate only exists through subsidy, which you force upon either developers or taxpayers.
Want to help the poor and homeless? Slow the intake rate and create economic conditions where these people can work. Stop making quality housing so difficult to build, renovate, and maintain due to stupid regulations.