In recent weeks, an inaccurate claim about Zillow CEO Jeremy Wacksman’s remarks on U.S. housing affordability has been circulating on social media. The claim suggests that Wacksman endorsed former President Donald Trump’s proposed mass deportation plan as a solution to housing affordability issues. However, this statement has been verified as false.
Jeremy Wacksman appeared on CNBC on November 7, where he discussed Zillow’s revenue growth in the context of a challenging real estate market. During the interview, co-host Sara Eisen brought up Trump’s deportation plan, probing whether it could alleviate housing affordability by reducing demand. Wacksman did not express support for this position. Instead, he highlighted ongoing challenges related to the supply-demand balance in the U.S. housing market, noting, “The big challenges in the real estate market are affordability and availability… We are missing listings, listings are up a little bit from last year, but if you look back to prepandemic levels, we’re down sharply and we are chronically underbuilt as a country.”
The online posts alleging an alignment with Trump’s immigration stance have been widely shared. However, meta platforms, Instagram and X, flagged these posts as part of their misinformation prevention efforts.
Further scrutiny by PolitiFact confirmed that Zillow attributes housing affordability problems primarily to a long-standing underbuilding issue and restrictive zoning regulations. Housing experts echo these sentiments, suggesting that Trump’s deportation strategy could potentially harm the housing sector by significantly affecting the construction workforce, which heavily relies on immigrant labor. Stijn Van Nieuwerburgh of Columbia Business School noted that immigrant labor constitutes about 23% of the U.S. construction workforce and is vital in trades like roofing and drywall installation. Thus, reducing this labor pool could exacerbate existing supply challenges.
Academic research supports these industry perspectives, showing that restrictive immigration policies can increase construction costs and decrease housing affordability. Chloe East, an economics professor from the University of Colorado, Denver, explained that broader economic trends, such as post-recession slowdowns in residential construction and high-interest rates, pose more substantial challenges to housing supply than immigration.
Market analysts suggest that housing prices might not experience significant declines across the board. Factors like millennial demand and limited housing stock are likely to continue applying upward pressure on prices, although some regional markets may see shifts.
In summary, the erroneous social media claims have misrepresented Zillow CEO Jeremy Wacksman’s remarks, inaccurately tying them to a controversial political stance. Instead, Wacksman and Zillow focus on a supply-driven solution to address housing affordability, emphasizing the need for increased inventory and reformed zoning. As the housing market continues to face affordability challenges, prospective buyers and policymakers are urged to consider the multifaceted nature of these issues.
Source: Noah Wire Services