Fed working paper links surge in illegal immigration to higher home, rent prices

WASHINGTON (TNND) — A new Federal Reserve working paper has found that a record surge in illegal immigration during the Biden administration coincided with higher home prices and rents.

The working paper, published by the Federal Reserve Bank of Dallas, examined the impact of unauthorized immigrant worker flows on housing and labor markets in metro areas. Economists estimated that unauthorized immigrant worker flows accounted for about 30% of employment growth, roughly 30% of home price growth and 20% of rent growth in the average metro area. Former acting ICE Director Jonathan Fahey said illegal immigration “cost the American people money.”

Because we know the rents and home prices went up because of illegal immigration and that’s really just common sense. You bring in over ten million people, they didn’t bring any homes with them, prices are going to rise,” Fahey told Fox Business.

After the paper’s release, multiple Trump administration officials shared it. Including President Trump himself, Press Secretary Karoline Leavitt and Bill Pulte, Director of Federal Housing and acting Director of National Intelligence.

Housing and Urban Development Secretary Scott Turner also weighed in, writing in part: “For years hardworking Americans had to compete with millions of illegal aliens for housing. Of course that raised prices.”

The working paper’s release comes months after HUD’s December report titled “Worst Case Housing Needs 2025,” which found that during the same time period, the foreign-born population of the U.S. increased by over 6 million. The largest such increase in that time frame in American history. Turner also pointed to New York and California.

There’s no coindience when you have unfettered access for illegals to come into your city, to come into your state that you’re going to have these problems with illegal immigration. 100% of the use of rental growth in New York and California is due to illegal aliens coming into our country,” Turner told Fox Business in December after the report was released.

The paper describes 2021-2024 as an “unprecedented boom in unauthorized immigration.” The authors cautioned that the study is a preliminary draft and does not reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System.