Former acting U.S. Immigration and Customs Enforcement Director Jonathan Fahey on Monday said former President Joe Biden’s immigration policies left Americans facing higher housing costs, pointing to a Federal Reserve Bank of Dallas working paper that linked the recent surge in unauthorized immigration to rising home prices and rents.

Fahey made the remarks during an interview on Fox Business following the July 4 holiday weekend.

The working paper examined how the unprecedented rise in unauthorized immigration between 2021 and 2024 affected local labor and housing markets by combining immigration court records with government administrative data. The authors cautioned that the paper is a preliminary draft released for professional review and does not necessarily reflect the views of the Federal Reserve Bank of Dallas or the Federal Reserve System.

Fed Paper Fuels Housing Debate

Fahey argued that the increase in immigration placed additional pressure on an already strained housing market.

“The American people overall are the losers on illegal migration,” Fahey said, adding that bringing millions of people into the country increased demand for homes, healthcare and other services without a corresponding increase in supply.

The comments come as housing affordability remains one of the biggest concerns for Americans. A recent BofA Securities housing report said elevated home prices, higher construction costs and affordability pressures continue to weigh on buyers, with the median age of first-time homebuyers reaching a record 40 in 2025.

The Dallas Fed paper found that a 1% increase in unauthorized workers relative to a local labor force was associated with roughly a 1% increase in overall employment. It also linked the population increase to an estimated 2.2% rise in home prices and a 1.4% increase in rents, reflecting additional housing demand. However, the researchers said they found no evidence that the immigration surge reduced average wages.

Immigration Remains a Key Policy Focus

The debate comes as immigration continues to be a central issue during President Donald Trump’s second term. Last month, Trump nominated former Oklahoma state trooper and U.S. Marine Lance Schroyer to lead U.S. Immigration and Customs Enforcement as the agency prepares for a broader expansion of enforcement operations.

Fahey argued the Trump administration’s approach prioritizes protecting American workers by reducing illegal immigration. While the Dallas Fed paper associated higher immigration with increased housing demand and higher home prices, the researchers stopped short of concluding that it lowered wages, highlighting the ongoing debate over the broader economic effects of immigration.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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