Impact of Immigration on Housing for Low-Income Americans
A recent study from the Department of Housing and Urban Development (HUD) highlights how former President Joe Biden’s immigration policies have led to rising home prices and rents, particularly affecting low-income households.
This annual HUD report addresses what it terms “worst-case housing needs,” referring to low-income individuals who don’t receive government support and spend more than half of their income on housing.
According to the report, the number of households experiencing these worst-case conditions increased to 8.46 million from 2021 to 2023, showing a consistent trend since 2019. The report attributes this increase to Biden’s immigration initiatives, which have introduced millions of newcomers to the United States, further straining housing affordability.
An important factor in escalating housing needs is immigration. Between 2021 and 2024, the U.S. foreign-born population grew by over 6 million, marking the fastest increase in history. Currently, more than 53 million people in the U.S. are foreign-born, the highest proportion ever recorded. This rise in immigrant households has significantly heightened the demand for housing, consequently driving up prices. In some areas, immigrants now account for nearly all recent increases in housing demand.
This year’s findings reveal two critical insights. First, while the economy is growing, it hasn’t translated into higher wages or affordable rents for low-income renters. Second, a combination of national macroeconomic policies, including high immigration rates, continues to sustain elevated rental demand, which puts pressure on rental prices.
The HUD report indicates that in 2023, there will be fewer than 60 affordable housing units for every 100 very low-income renters, and less than 40 for those classified as extremely low-income.
“It’s crucial to recognize how illegal immigration and the influx of people into our country are impacting prices and supply,” HUD Secretary Scott Turner mentioned during an interview.
Turner elaborated on the challenges posed by the influx of more than 12 million people crossing the border, stating that it strains both the supply of available housing and the overall affordability of homes.
Looking ahead, Turner expressed hopes that the Federal Reserve might consider lowering interest rates and that the administration would continue efforts to deport individuals living in the country illegally, as these actions might help alleviate the housing burden on Americans.
