The Impact of Trump’s Immigration Policies on the U.S. Housing Market

Recent developments in the U.S. housing market have shown a dramatic shift in the availability of Federal Housing Administration (FHA) loans for non-permanent residents, particularly following the latest executive orders from former President Trump regarding immigration. 📉 According to new reports, the issuance of FHA-backed mortgages to non-permanent residents has nearly dropped to zero, signaling a significant change in how immigration policies affect the housing market.

FHA Loan Eligibility Changes: A New Era for Non-Permanent Residents

On March 26, 2025, the U.S. Department of Housing and Urban Development (HUD) announced that as of May 25, non-permanent residents, including H-1B visa holders, would no longer be eligible for FHA-insured mortgage loans. This decision aims to “protect the economic opportunities of U.S. citizens and legitimate permanent residents,” ensuring that federal benefits, including FHA mortgage loans, are exclusively available to those holding legal permanent resident status. 🌍

Market Repercussions: Reshaping Homeownership for Non-Permanent Residents

Experts from John Burns Research & Consulting (JBREC) have noted that this policy change is already reshaping the landscape for non-permanent residents wishing to purchase homes in the U.S. Alex Thomas, a representative from JBREC, shared on social media platform X that the new regulations are significantly altering the homebuying patterns of non-residents. 🏡

JBREC’s latest report highlights a staggering decrease in FHA loans for non-permanent residents, with their share falling from over 6% in April to nearly 5.5% in May, and then plummeting to less than 1% in June. As of July and August, the percentage of non-permanent residents obtaining FHA loans was virtually zero—marking the lowest levels seen since February 2018.

The Broader Implications: Access to Homeownership Under Pressure

Data suggests that the combination of Trump’s latest policies and the already high housing prices in the U.S. have significantly constrained non-permanent residents’ ability to access the real estate market. Eric Finnigan from JBREC pointed out that the FHA’s loan ban for H-1B visa holders and other non-permanent residents has intensified the pressure on the entry-level housing market, which was already facing challenges such as low sales and oversupply. Additionally, the new restrictions have diminished the appeal of living in the U.S. for H-1B visa holders. 🏘️

Conclusion: A Shifting Landscape for Non-Permanent Residents

As the U.S. continues to navigate complex immigration and housing policies, the implications of these changes for non-permanent residents will be critical to monitor. The current state of the housing market remains influenced by legislation that prioritizes U.S. citizens and permanent residents, leaving non-permanent residents seeking homeownership facing unprecedented obstacles. 📊