Illegal immigration surge drove 30 percent home price rise and 20 percent rent hike. Republican campaign promises on mass deportation get watered down fast after election.

1 percent rise in illegal workers linked to 2.2 percent higher home prices and 1.4 percent higher rents.

Housing supply failed to keep up creating pure demand shock.

Employment rose but average wages showed little change.

Democrats flooded country with millions knowing removal would be weak.

Republicans won House Senate and White House on mass deportation promises.

DHS now closes 7 of 11 new ICE facilities.

Enforcement limited to worst criminal illegal aliens after serious crimes.

Uses existing state county partner space instead of new capacity.

This leaves most illegal population in place long term.

Closing new facilities signals lower priority on broad enforcement.

This locks in demographic changes voters wanted reversed.

Biden’s illegal immigration surge triggered 30% rise in home prices, $ 20% in rents, Fed paper finds

A new Federal Reserve working paper found the record surge in illegal immigration during the Biden administration triggered higher home prices and rents.

The findings arrive as immigration remains a polarizing political issue. Republicans argue former President Joe Biden’s border policies strained housing and public resources, while Democrats say immigration helped ease labor shortages and supported economic growth.

The paper, published by the Federal Reserve Bank of Dallas, combines immigration court records with government administrative data to measure how the unprecedented wave of illegal immigration between 2021 and 2024 affected local labor and housing markets.

The authors caution the study is a preliminary draft circulated for professional comment and does not necessarily reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System.

Researchers found the influx of illegal immigrants boosted employment with little measurable effect on wages but significantly increased housing demand.

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