{"id":2621464,"date":"2026-06-30T11:32:01","date_gmt":"2026-06-30T15:32:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-study-illegal-immigration-caused-30-of-home-price-spikes-while-deflating-american-wages\/"},"modified":"2026-06-30T11:37:33","modified_gmt":"2026-06-30T15:37:33","slug":"fed-study-illegal-immigration-caused-30-of-home-price-spikes-while-deflating-american-wages","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/fed-study-illegal-immigration-caused-30-of-home-price-spikes-while-deflating-american-wages\/","title":{"rendered":"Fed Study: Illegals Caused Home Price Spikes, Deflated Wages"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Ffed-study-illegal-immigration-caused-30-of-home-price-spikes-while-deflating-american-wages%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2621464&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>A recent Federal Reserve Bank of Dallas working paper highlights that illegal immigration between 2021 and 2024 contributed significantly to rising housing costs and declining wages for Americans.The study estimates that approximately 7 million unauthorized immigrants entered the U.S. during this period, nearly doubling the rate of legal immigration, and largely comprised lower-skilled workers who took on <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/mcauliffe-fundraises-with-real-estate-exec-who-pushed-controversial-visa-program-to-attract-chinese-investment\/\" title=\"McAuliffe Fundraises With Real Estate Exec Who Pushed Controversial Visa Program To Attract Chinese Investment\">low-paying jobs<\/a>.This influx increased demand for housing and labor, leading to higher rents and home prices-by 1% illegal immigration correlates with a 2.2% rise in home prices and a 1.4% increase in rents-while wages for native workers decreased.Despite increased employment in construction,ther was no corresponding increase in new housing supply,and native working-class renters bore the economic burden through lower wages and higher housing costs.<\/p>\n<p>The study also notes a subsequent slowdown and eventual decline in illegal immigration after the Trump administration implemented stricter border policies, potentially providing relief to those impacted. Experts like Dr.Steven Camarota have previously warned that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/how-trumps-deportation-agenda-is-being-stalled-in-courts\/\" title=\"How Trump&#039;s deportation agenda is being stalled in courts\">illegal immigrants frequently<\/a> enough rely heavily on welfare programs, which cost U.S. taxpayers billions annually-over $150 billion according to FAIR. Thay also tend to have lower education levels and contribute less in taxes,further straining public resources. research suggests that illegal immigration has had adverse effects on housing affordability, government budgets, and American workers, a reality largely underreported in mainstream media.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>As <a href=\"https:\/\/thefederalist.com\/2026\/06\/29\/new-study-immigration-caused-40-of-your-rent-hikes-over-10-years\/\" target=\"_blank\" rel=\"noreferrer noopener\">more studies<\/a> continue to show causation between immigration and skyrocketing housing prices, a March <a href=\"https:\/\/www.dallasfed.org\/~\/media\/documents\/research\/papers\/2026\/wp2607.pdf\">working paper<\/a> from the Federal Reserve Bank of Dallas shows illegal immigration drove up Americans\u2019 housing prices and rent costs while deflating the value of their paychecks.<\/p>\n<p>During an unprecedented boom of undocumented border crossings between 2021 and 2024, the Fed Reserve paper found that approximately 7 million unauthorized immigrants entered the United States at double the rate of legal immigration, directly affecting the cost of living and working wages for everyday Americans. (While this study puts the number of illegals that entered the country at 7 million, other <a href=\"https:\/\/www.washingtonexaminer.com\/news\/2455010\/illegal-border-crossers-total-over-10-million-since-biden-inauguration\/\" target=\"_blank\" rel=\"noreferrer noopener\">estimates<\/a> show it was far higher.)<\/p>\n<p>\u201cThe influx of these immigrant workers acted as a positive supply shock to local labor markets, it acted simultaneously as a demand shock to local housing markets, boosting rents given relatively inelastic short-run housing supply,\u201d noted paper authors Daniel J. Wilson and Xiaoqing Zhou.<\/p>\n<p>The authors also noted that the majority of illegal immigrants tend to be a lower-skilled, lower-educated demographic, who take on labor for lower payment. Illegal aliens accounted for nearly a third of the overall increase in employment, the paper found. <\/p>\n<p>Additionally, the authors discovered that for every 1 percent increase in illegal immigration \u201cequal to 1% of a local area\u2019s initial employment,\u201d home prices increased by 2.2 percent, rent grew by 1.4 percent, and wages decreased by 0.87 percent, and 0.7 for the average American. This means illegal immigration is responsible for \u201cabout 30% of the total growth in house prices and 20% of total growth in rents over the boom period for the average local market.\u201d<\/p>\n<p>Though the study found that employment in the construction industry increased because of the influx of illegal aliens, there was no correlation between that increase and new construction of housing. \u201cWe find that unauthorized immigrant worker flows increased local house prices and rents, without significantly expanding new housing supply,\u201d the study reads.<\/p>\n<p>In sum native working-class renters faced decreasing wages as illegal aliens flooded into the job market, and they also took the brunt of the housing cost increase as demand for apartments and multi-family housing grew.<\/p>\n<p>Notably, the Federal Reserve paper\u2019s author found \u201ca stark slowdown\u201d in illegal immigration coinciding with the Trump administration taking power. The flow of illegal immigration became \u201cnegative by February 2025,\u201d the authors <a href=\"https:\/\/www.dallasfed.org\/research\/economics\/2026\/0113\" target=\"_blank\" rel=\"noreferrer noopener\">noted<\/a>, and the \u201cplaces with the largest unauthorized worker inflows during the boom also experienced the largest subsequent outflows.\u201d The reversal hints at potential relief for the Americans who bore the financial burden of Democrat open-border policies.<\/p>\n<p>The Fed Reserve paper reports what others in the research community have been warning about for the past several years. Dr. Steven Camarota, director of research for the Center for Immigration Studies, testified in <a href=\"https:\/\/edworkforce.house.gov\/news\/documentsingle.aspx?DocumentID=409542\" target=\"_blank\" rel=\"noreferrer noopener\">multiple<\/a> <a href=\"https:\/\/www.congress.gov\/event\/118th-congress\/house-event\/LC73278\/text\" target=\"_blank\" rel=\"noreferrer noopener\">congressional hearings<\/a> during the Biden border crisis, detailing the damaging effects of illegal immigration underscored by the high participation of illegal aliens in rental properties and government welfare programs.<\/p>\n<p>In his prepared <a href=\"https:\/\/oversight.house.gov\/wp-content\/uploads\/2024\/09\/Camarota-Testimony.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">testimony<\/a> from 2024, \u201cThe Consequences of Illegal Immigration for Housing Affordability, Government Budgets, and American Workers,\u201d Camarota stated: \u201cThe negative fiscal impact of illegal immigrants \u2014 taxes paid minus benefits received \u2014 is primarily due [to] their modest average education level. <\/p>\n<p>\u201cSome 69 percent of adult illegal immigrants are estimated to have no education beyond high school, which is double the U.S.-born share,\u201d Camarota testified. \u201cThis results in relatively low average incomes and tax payments, along with significant use of welfare. \u2026 Other researchers point to overly generous welfare and disability programs that undermine work.\u201d<\/p>\n<p>Camarota examined the use of welfare programs, including the Earned Income Tax Credit (EITC), Women, Infants, and Children benefits (WIC), Supplemental Nutrition Assistance Program (SNAP), and Medicaid. He found that 59 percent of illegal immigrants used welfare programs and 39 percent used Medicaid. In contrast, 39 percent of U.S. born citizens utilized welfare in some form, and 25 percent made use of Medicaid.<\/p>\n<p>\u201cFederal expenditures on these programs total $817 billion,\u201d and \u201cstates spent an additional $226 billion on Medicaid,\u201d Camarota said at the time. \u201cIf we wish to reduce the cost associated with illegal immigrants\u2019 use of means-tested programs, we need to enforce the law and reduce the number of illegal immigrants in the country. If they are allowed to remain, the welfare costs will remain too.\u201d<\/p>\n<p>A <a href=\"https:\/\/www.fairus.org\/issue\/publications-resources\/fiscal-burden-illegal-immigration-united-states-taxpayers-2023\" target=\"_blank\" rel=\"noreferrer noopener\">study<\/a> from the Federation for American Immigration Reform (FAIR) found that in total, illegal immigrants cost American taxpayers at least $150.7 billion dollars annually.<\/p>\n<p>Harvard professor George J. Borjas also noted the collateral damage of open borders in 2013 when he <a href=\"https:\/\/cis.org\/Report\/Immigration-and-American-Worker\" target=\"_blank\" rel=\"noreferrer noopener\">found<\/a> that illegal immigration \u2014 though it increased the gross domestic product \u2014 reduced \u201cthe wage of native workers by an estimated $99 to $118 billion a year.\u201d But aside from the rare reference, such as a <a href=\"https:\/\/www.wsj.com\/opinion\/border-enforcement-does-affect-american-workers-wallets-cc45d6b0\" target=\"_blank\" rel=\"noreferrer noopener\">recent<\/a> op-ed published in The Wall Street Journal, corporate media have largely ignored research demonstrating that working-class Americans are taking the brunt of mass migration when it comes to housing affordability, wages, and access to welfare programs.<\/p>\n<hr>\n<p>      Libby Bandelin is a reporting and editing intern at The Federalist.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Illegal immigration increased housing costs, wages fall<\/p>\n","protected":false},"author":4334,"featured_media":2621465,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/06\/aedrian-salazar-MTxseYMqYzk-unsplash-scaled.jpg","fifu_image_alt":"","footnotes":""},"categories":[546,33651],"tags":[4344,3813,63790],"class_list":["post-2621464","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist","category-the-western-journal","tag-housing","tag-immigration","tag-wages-2"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2026\/06\/aedrian-salazar-MTxseYMqYzk-unsplash-scaled.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2621464","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/4334"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2621464"}],"version-history":[{"count":3,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2621464\/revisions"}],"predecessor-version":[{"id":2621468,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2621464\/revisions\/2621468"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2621465"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2621464"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2621464"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2621464"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}