Where I live because of the fruit industry there is a large influx of both legal and illegal immigrants. 30% of our population is Hispanic. In the school system they are the majority at 55%. As a result, our rental market has always been high with very low vacancy rates. 1-2 %. This does have a ripple effect on the community. My RN wife up until last spring did the bulk of orientation for new employees at our hospital. Mostly nurses but other medical professionals as well. She will tell you that the hospital misses out on getting many good people because their common complaint is they cannot find good housing in our area. It is too high and just importantly, so little is available.Young people think they are broke because they are used to having expensive phones and huge cellphone bills, mocha frappes, etc. They also think they can wait for 2.5% interest rates to come around. On top of all that they don't want to live in a little 2 bedroom while they build equity.
Illegals might be driving housing shortages in some areas, or even alot of areas, but I know they aren't where I live. Politicians kept interest rates down for way too long and gave people a false sense of normal. Now people refuse to give up that hope, IMO.