President Donald Trump recently stated that illegal immigration was responsible for a 40% to 50% increase in housing costs during President Joe Biden’s tenure. However, a working paper by Federal Reserve economists found that unauthorized immigration only accounted for a 4.3% increase in rental housing prices from 2021 to 2024.

Study Findings

The study used the Zillow Observed Rent Index to determine that U.S. rental housing prices climbed 22.6% from early 2021 to early 2024 in the average metropolitan statistical area. The paper’s authors noted that the increase was primarily due to a supply and demand issue, with immigrants adding to the need for housing supply but not enough housing units being constructed to meet the increased demand.

Experts have cautioned against blaming price increases on illegal immigration rather than a lack of new construction, which is a primary factor. Dean Baker, cofounder and senior economist at the liberal Center for Economic and Policy Research, stated that newly arrived immigrants typically have low housing demand and often share housing with other immigrants, family members, or friends.

Fact-Check

PolitiFact rated Trump’s claim as Mostly False, as it exaggerated the effect of illegal immigration on rental housing prices. The study found that unauthorized immigration drove prices up 4.3%, not 10 times that. Additionally, there is no evidence to support the claim that the Biden administration housed immigrants in the U.S. illegally in vacant homes.

Original reporting: WRAL Raleigh — read the source article.