Housing Prices Linked to Immigration, According to HUD

The Department of Housing and Urban Development (HUD), under the Trump administration, attributes the rise in housing and rental costs to increased immigration during the Biden administration.

In a report titled “Worst-case housing needs: 2025 report to Congress,” HUD offered an analysis of problems facing low-income renters. It characterizes renters in dire circumstances as those without government assistance, paying over half their income on rent, or living in severely inadequate conditions, or a combination of these factors.

HUD stated, “The unchecked illegal immigration and open border policies authorized by the Biden administration continue to place significant strain on housing and squeeze affordability for American families.”

The agency contends that the influx of immigrants has amplified housing demand, which has subsequently driven up prices. From 2021 to 2024, the foreign-born population in the U.S. surged by over 6 million—a record increase in such a short period. Today, the foreign-born population exceeds 53 million, the highest proportion ever recorded, according to HUD.

Since 2000, the number of foreign-born residents has risen by 20 million, marking a 40% increase. In areas like California and New York, immigrants account for nearly all rental growth and over half of homeownership occupancy growth. HUD reports that immigrants represent two-thirds of the nationwide increase in rental demand.

The median cost of rent rose from $1,184 in 2021 to $1,391 in 2023, reflecting an increase of almost 17.5%.

Additionally, the report underscores that the growth of non-citizen households has surged by 13% from 2019 to 2023, compared to 7% from 2015 to 2019. This data highlights how non-citizen households are increasingly impacting the demand for affordable housing.

Besides immigration, HUD’s report points out other contributors to the affordable housing crisis, such as demand-side housing subsidies and declining marriage rates.

Housing and Urban Development Secretary Scott Turner remarked that the immigration policies of the Biden administration harm the housing market and emphasized the need for a shift in approach—suggesting that with Trump, there is a promise to restore effective immigration policies.

Looking forward to 2025, HUD plans to assist 1 million first-time homebuyers through various programs and is urging the Federal Reserve to lower interest rates to enhance housing affordability.