Vance Vindicated: Biden Admin’s Flood of Illegal Aliens Raised Housing Prices
A newly released study from the Federal Reserve Bank of Dallas lends support to Vice President JD Vance’s longstanding argument that the surge of illegal immigration under the Biden administration contributed to rising home prices and rents across the United States.
Vance has repeatedly argued that the arrival of millions of illegal immigrants increased competition for a limited housing supply, placing additional financial pressure on American families seeking to buy or rent homes. During his debate with Minnesota Gov. Tim Walz, Vance said that 25 million illegal aliens were “competing with Americans for scarce homes is one of the most significant drivers of home prices in the country.”
He made a similar point during an interview with Fox News host Sean Hannity, saying that many young Americans believe “housing is way too expensive,” while arguing that the nation had been “flooded with 30 million illegal immigrants who are taking houses that ought by right go to American citizens” at a time when home construction has failed to keep pace with demand.
According to Fox Business, a recent report from the Federal Reserve Bank of Dallas examined how the influx of illegal immigrants “between 2021 and 2024 affected local labor and hosing markets.”
The researchers concluded that illegal immigration played a significant role in both employment growth and rising housing costs. They estimated that “unauthorized immigrant worker flows accounted for about 30 percent of employment growth, roughly 30 percent of home-price growth, and about 20 percent of rent growth”:
“A 1 percent increase in unauthorized workers relative to a local labor force corresponded with roughly a 1 percent increase in overall employment, with no evidence the immigration surge reduced average wages. The same 1 percent increase, however, was associated with a roughly 2.2 percent rise in home prices and a 1.4 percent increase in rents. Researchers found little evidence that homebuilding expanded enough to meet the added demand, concluding the influx acted as a housing demand shock in markets where supply was already constrained.
“The economists estimate unauthorized immigrant worker flows accounted for about 30 percent of employment growth, roughly 30 percent of home-price growth, and about 20 percent of rent growth in the average metropolitan area between March 2021 and March 2024.”
Vance’s assertions have previously been challenged by several major news organizations, which argued that his claims overstated the role of illegal immigration in driving housing costs.
In October 2024, CBS News reported that although Vance “posted some studies and speeches on social media to back up his claim” that millions of illegal immigrants were competing with Americans for housing, the Federal Reserve material he cited amounted to a “short prepared speech by a Fed official who had pointed out that the ‘inflow of new immigrants to some geographic areas could result in upward pressure on rents.’”
CBS also maintained that “the causes behind skyrocketing housing costs stem” primarily from broader market conditions, including “a longstanding lack of new construction in the decade that followed the U.S. housing crash in 2007”:
“The causes behind skyrocketing housing costs stem chiefly from larger issues in the real estate market. The biggest factor: a longstanding lack of new construction in the decade that followed the U.S. housing crash in 2007, along with the ensuing global financial crisis.”
The New York Times likewise questioned Vance’s argument, writing that although “millions of illegal immigrants” have contributed to increased housing demand through population growth, economists believe the primary cause of the affordability crisis remains an inadequate housing supply.
Responding to the new Federal Reserve findings, a spokesperson for Vance sharply criticized previous media coverage.
“Once again, the useless attempts to fact-check the Vice President have proven that the mainstream media is nothing more than a propaganda arm for the Left,” the spokesperson said in a statement to Breitbart News. “While the media tries to gaslight the public into ignoring the real impact left-wing policies have had on their lives, the Trump administration is working to ensure that Americans can afford to own homes on American soil.”
{Matzav.com}
