how much did illegal immigrants increase housing costs

The most cited recent estimate is that a 1% increase in unauthorized workers in a local labor market was associated with about a 2.2% rise in home prices and a 1.4% increase in rents, according to reporting on a Federal Reserve working paper. That same research was also summarized as explaining roughly 30% of home-price growth and about 20% of rent growth in the average metro area between March 2021 and March 2024, but it did not say immigration was the only driver of housing costs.

What that means

• The effect is measured locally, not as a single nationwide number.
• It refers to unauthorized immigration in specific metro areas during the 2021–2024 period.
• The study’s estimate is an association from a working paper, so it should be read as evidence of contribution, not a simple one-cause explanation.

Bigger picture

Housing costs also moved because of interest rates, construction shortages, demand swings, and broader inflation. So the cleanest answer is: illegal immigration appears to have added to housing pressure, but it was one factor among several.

Quick answer

If you want the headline number, the best-supported one in the recent reporting is:

• Home prices: about 2.2% higher for each 1% increase in unauthorized workers.
• Rents: about 1.4% higher for each 1% increase in unauthorized workers.

Would you like a plain-English breakdown of how that estimate was calculated?