Impact of Illegal Immigration on Housing Prices
Vice President J.D. Vance has reiterated his stance that the Biden administration’s surge of millions of illegal immigrants is influencing home prices in the United States.
Mr. Vance has frequently pointed out that this influx of illegal immigrants is pushing home prices and rents higher for American citizens. During a debate with Governor Tim Walz of Minnesota, he remarked that the “25 million illegal aliens competing with Americans for scarce housing is one of the biggest drivers of housing prices in this country.”
In a recent interview with Sean Hannity, Vance mentioned that many young Americans feel “housing is too expensive.” He emphasized that “30 million illegal immigrants are flooding into this country,” which is taking away the housing opportunities that Americans deserve, especially since new housing construction isn’t keeping pace with demand.
A report from the Federal Reserve Bank of Dallas indicated that the influx of illegal immigrants is significantly impacting local labor and housing markets from 2021 to 2024. It was noted that the influx of undocumented workers accounts for approximately 30 percent of job growth, housing price increases, and about 20 percent of rent growth.
According to researchers, a 1 percent increase in temporary workers relative to the local labor force correlates with around a 1 percent rise in overall employment. Interestingly, there’s little evidence to suggest that this immigration surge has lowered average wages. However, this same 1 percent increase is tied to roughly a 2.2 percent hike in home prices and a 1.4 percent rise in rents. The researchers concluded that home construction hasn’t expanded enough to satisfy this extra demand, acting as a shock to an already supply-constrained market.
Economists estimate that undocumented immigrant workers have played a role in about 30% of employment growth, 30% of home price growth, and 20% of rent growth in typical metropolitan areas from March 2021 to March 2024.
Some news outlets have previously sought to fact-check Vance’s assertion that the influx of millions of illegal immigrants has contributed to rising home prices and rents.
In an October 2024 report, CBS News mentioned that Vance shared research and speeches on social media backing his claims, but a Federal Reserve investigation revealed it consisted of a brief speech highlighting that “an influx of new immigrants to specific areas could exert upward pressure on rents.”
The media also indicated that rising housing prices are largely due to broader issues in the real estate market, particularly a persistent lack of new construction in the decade following the 2007 housing crash.
Vance affirmed this perspective, stating that “millions of illegal immigrants” are arriving who cannot afford housing.
Experts note that while both legal and illegal immigrants are contributing to population growth and subsequently increasing housing demand, they aren’t the leading cause of the housing affordability crisis; rather, a lack of supply is at the core of the issue.
A spokesperson for Vance commented, “The Vice President’s futile attempt at fact-checking proves once again that the mainstream media is merely a left-wing propaganda machine. While the media tries to mislead Americans about the real impacts of leftist policies on their lives, the Trump administration is focused on making home ownership attainable for Americans.”
