The Dallas branch of the Federal Reserve Bank reports the effects of illegal immigration upon income and housing costs.
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.
We find that unauthorized immigrant worker flows (UIWF) increased local employment approximately one-for-one, without significant declines in local wages. These inflows also raised local house prices and rents without expanding housing supply, consistent with a housing demand shock in the face of short-run inelastic supply. Lastly, we find that UIWF reduced labor income per capita, consistent with downward wage composition of the local workforce, and strongly reduced government transfers.
The above is from the Fed's Abstract. The following is from the New York Post's synthesis of the Fed report.
The economists estimate unauthorized immigrant worker flows accounted for about 30% of employment growth, roughly 30% of home-price growth, and about 20% of rent growth in the average metropolitan area between March 2021 and March 2024.
They stress these estimates apply to the average metro area studied and do not suggest immigration was the sole driver of rising housing costs nationwide.
Joe Bided was demonstrably clueless and senile. We still suffer the consequences - higher prices, especially for housing.
