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Illegal Immigration Made The Average New House $30K More Expensive Under Biden

The (at least) seven million people who entered the United States illegally from 2021-2024 raised home prices by 6.6 percent.

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Although Americans still express strong support for legal immigration, according to the latest Gallup survey, a large plurality, including Democrats, acknowledge immigration drives up housing costs and reduces availability.

The data confirm this impression. Mass immigration has contributed heavily to the dramatic housing price increases, a newly leaked draft working paper from the Federal Reserve confirms. Illegal immigration drove 30 percent of the increase in U.S. home prices from 2021 to 2024, along with 20 percent of the rise in rent prices, the researchers found.

In total, the (at least) seven million people who entered the United States illegally in those four years raised home prices by 6.6 percent, through a “housing demand shock in the face of short-run inelastic supply,” the authors observe.

The 2008 financial crisis pushed the annual growth of America’s housing supply far below the normal historical average, and it has remained well short of the norm ever since. Meanwhile, the number of U.S. households has rapidly increased.

Illegal immigration hit tsunami levels during the Joe Biden presidency, The Federalist’s Libby Bandelin reported: “From 2021-2024, the United States saw the largest influx of immigrants in its history.”

That has put an immense amount of pressure on a stagnant housing stock. The median price of new houses sold in January 2021 was $346,400, and the average price was $408,800, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development. Those prices rose by approximately $100,000 each, to $446,300 and $510,000 respectively, by January 2025.

That means illegal immigration, on its own, drove up the average price of a new house by $30,000 during the Biden administration.

It is important to note that the effect the Fed researchers identified was for illegal immigration only. Legal immigration pushes the total immigration effect on housing prices even higher, given that the housing supply is inelastic regardless of people’s legal status.

Net international migration to the United States was 379,000........

© The Federalist