On Sunday (updated Monday), Just the News posted an article about a paper written by the Federal Reserve Bank in Dallas about the impact of illegal immigration on employment and housing costs.

The article reports:

A new Federal Reserve Bank of Dallas working paper estimates the record surge in illegal immigration during the Biden administration boosted employment while causing 30% of home price increases and 20% of rent increases.

The paper combined immigration court records with government administrative data to create the first ever calculation of how a wave of 7 million illegal immigrants from 2021 through 2024 affected local labor and housing markets.

“From early 2021 to early 2024, the U.S. experienced an unprecedented boom in unauthorized immigration, followed by a rapid slowdown beginning in mid-2024. We provide the first systematic empirical assessment of the labor- and housing-market effects of this episode,” the working paper said.

“The total weighted-mean increases in house prices and rents over this period were 22.4% and 22.6%, respectively. Putting these together, for the average MSA, UIWF can explain approximately 30% of the total increase in house prices and 20% of the total increase in rents,” it added.

You can read the full paper here. 

Their conclusions make sense–it’s an illustration of the law of supply and demand. As more people come into the country, the demand for housing increases faster than the supply, and the cost of housing increases.