How Global Migration Drives Housing Demand: Trends, Challenges, and Solutions

By Michael ChenLast Updated September 4, 2025

Photo by – Kenny on Unsplash

Introduction

Global migration is reshaping housing markets and demand in cities and regions worldwide. With more than 110 million people forcibly displaced and 1.6 billion lacking adequate housing, understanding the interplay between migration and housing is crucial for individuals, policymakers, and industry professionals seeking opportunities and solutions [2] . This article examines how migration impacts housing demand, affordability, and market dynamics, and offers practical guidance for finding and accessing housing amid these trends.

Migration as a Driver of Housing Demand

Migration significantly boosts housing demand, especially in growing urban areas and regions experiencing population influxes. Research shows that immigration adds hundreds of thousands of new households annually, with most newcomers initially renting homes before transitioning to ownership [3] . For example, in the United States:

Normal annual immigration adds about 1.2 million people and creates 270,000 new households.
Between 2022 and 2024, increased immigration added 2.7 million people per year and created 500,000 new households annually.
Of the extra 700,000 new households from this surge, about 600,000 were renters and 100,000 were homeowners [3] .

Similar dynamics play out globally. Migrants settle in cities with strong economies, driving demand for rentals and affordable housing, while stabilizing declining populations in regions with stagnant growth [1] .

Impact on Housing Prices and Affordability

Migration increases competition for limited housing stock, often impacting prices and rents. The scale of this effect varies by local market conditions and the volume of arrivals:

A 1% increase in immigrant population correlates with a 1%-1.6% rise in rents and up to a 9.6% increase in home prices in some metro areas [1] .
In Miami, a 9% population increase from migration resulted in an 8-11% rise in rents, suggesting near parity between demand growth and price hikes [5] .

While migration contributes to housing demand, it’s not the sole factor behind rising costs. Supply chain issues, rising mortgage rates, zoning restrictions, and limited new construction often play a larger role. However, in cities with large migrant inflows-such as New York, Miami, and Denver-the pressure on affordability and competition for rentals has become acute [2] , [4] .

Housing Shortages and Market Stress

Many countries face chronic housing shortages, especially in affordable and multifamily segments. In the U.S., the gap is estimated at 4-7 million units, worsened by declining construction and surging costs [4] . Globally, 1.6 billion people lack adequate housing, a number projected to nearly double by 2030 [2] . Migration compounds these shortages by increasing the number of households seeking rentals and entry-level homes, straining supply and fueling competition.

For example, in New York City, record-high rents and a vacancy rate of just 1.4% have coincided with the arrival of over 175,000 migrants, doubling the number of people in homeless shelters since 2022 [2] .

Practical Guidance: Navigating Housing Opportunities

For migrants and newcomers seeking housing, navigating limited supply and rising costs can be challenging. The following steps can help you access available housing:

Research Local Market Conditions: Start by understanding the rental and ownership landscape in your target city. Use official city government websites and established real estate portals (such as Realtor.com and Zillow for the U.S.) to review current listings, average prices, and vacancy rates.
Seek Support from Community Organizations: Many cities have nonprofit organizations and immigrant service agencies that help newcomers find housing, provide legal assistance, and support integration. Examples include the International Rescue Committee and Catholic Charities. To access these services, search for local immigrant support groups or visit city government resource pages.
Explore Government Assistance Programs: Affordable housing programs may be available through municipal housing authorities or national agencies. For the U.S., you can contact your local housing authority or visit the U.S. Department of Housing and Urban Development (HUD) official website and search for ‘affordable housing programs.’ For other countries, consult official government portals or ministries of housing.
Consider Shared Housing and Co-Living: In high-cost cities, shared housing arrangements and co-living spaces can offer affordable alternatives. Search for co-living providers or local classifieds to find opportunities.
Build Credit and Rental History: Many landlords require proof of income, credit history, and references. Newcomers may need to establish these through community banks, local credit unions, or employment agencies. Seek guidance from immigrant support organizations if you lack documentation.
Advocate for Policy Change: If facing systemic barriers, consider engaging with advocacy groups that promote expanded affordable housing, fair zoning policies, and inclusive development. Many organizations lobby for increased housing construction and better access for migrants; you can participate by contacting local representatives or joining community coalitions.

Challenges and Solutions

Challenges: Migrants often face discrimination, language barriers, and limited access to credit. In competitive markets, newcomers may struggle to secure leases, especially for multifamily or affordable units. Housing shortages and rising costs intensify these challenges, sometimes leading to overcrowding or homelessness [2] .

Solutions: To address these obstacles:

Engage with local immigrant service agencies for legal aid and housing referrals.
Participate in language and financial literacy programs to improve employment and rental prospects.
Advocate for fair housing policies that protect against discrimination and expand affordable housing supply.
Seek alternative housing arrangements, such as shared rentals or transitional housing programs.
If encountering difficulties, document your experiences and consult legal professionals or advocacy groups specializing in tenant rights.

Many cities and countries are investing in new construction, streamlining permitting, and incentivizing affordable housing development. These efforts can take time, but participating in local initiatives and staying informed about opportunities is crucial.

Alternative Approaches and the Future

Besides traditional rentals and ownership, alternative housing models like co-living, modular construction, and community land trusts offer possible solutions to shortages exacerbated by migration. Some cities are experimenting with public-private partnerships and innovative financing to expand supply. If you’re seeking housing in such environments, monitor local government updates and real estate news for pilot programs and new opportunities.

Given the projected rise in global migration and displacement, proactive planning and engagement with community resources will remain essential for both newcomers and established residents navigating housing markets.

Key Takeaways

Global migration is a major driver of housing demand, especially in growing urban centers. While migrants help stabilize declining regions and contribute to economic vitality, they also intensify competition for affordable housing in high-demand cities. Individuals and families can navigate these challenges by leveraging community resources, government programs, and innovative housing models. Policymakers and industry leaders must continue investing in supply expansion and inclusive policies to ensure that housing markets remain accessible for all.