Wow! Americans are shocked to hear this but Republican lawmakers have long known the truth.
Former acting ICE Director Jonathan Fahey says the immigration policies put in place during former President Joe Biden’s administration left many American families facing higher housing costs and increased financial pressure, while praising President Donald Trump’s border agenda as a better path for protecting workers and strengthening the economy.
Speaking Monday during an appearance on FOX Business with Cheryl Casone, Fahey argued that the consequences of illegal immigration reached far beyond the southern border, affecting everything from housing affordability to public services.
“The American people overall are the losers on illegal migration,” Fahey said. “Certain industries may benefit, but President Trump’s policies are focused on protecting American workers and helping wages rise.”
Federal Reserve Study Sparks New Debate
Appearing on Mornings With Maria after the Independence Day weekend, Fahey pointed to new research from the Federal Reserve Bank of Dallas examining the historic surge in illegal immigration between 2021 and 2024.
The working paper analyzed immigration court records alongside government administrative data to evaluate how the increase in illegal immigration affected local labor markets and housing across the country.
Researchers emphasized that the report is a preliminary working paper intended for professional review and does not represent the official views of the Federal Reserve Bank of Dallas or the Federal Reserve System.
Even so, Fahey argued that many of the findings support what millions of Americans have experienced firsthand.
Housing Costs Under Pressure
According to the study, areas experiencing larger increases in unauthorized immigration also saw stronger demand for housing.
Researchers found that a 1% increase in unauthorized workers relative to a local labor force was associated with approximately a 2.2% increase in home prices and a 1.4% increase in rents, suggesting additional pressure on housing markets that were already struggling with limited supply.
Fahey said those findings should come as no surprise.
“It’s really just common sense,” he said. “When more than 10 million people enter the country, they all need places to live. They didn’t bring homes with them, so demand rises and housing prices go up.”
For many Americans already dealing with inflation and elevated mortgage rates, affordable housing remains one of the country’s biggest economic concerns.
Concerns Over Wages and Public Services
Fahey also argued that the rapid population increase placed added strain on healthcare and other public resources.
“We also saw wages go down during the Biden administration,” he said. “Healthcare became more expensive as well. We didn’t suddenly add enough doctors, nurses, or hospitals to keep up with the increased demand.”
The Federal Reserve paper reached a more limited conclusion on wages. Researchers found that while communities with larger increases in unauthorized workers generally experienced higher overall employment, they did not find evidence that the immigration surge reduced average wages across local labor markets.
The study instead identified housing as the area where the economic effects were most measurable.
Immigration Remains a Major Political Issue
Immigration continues to rank among the top concerns for many voters as the Trump administration pursues tougher border enforcement and expanded deportation efforts.
Supporters of the administration argue that stronger immigration enforcement helps protect American jobs, ease pressure on housing, and improve public safety. Critics, meanwhile, contend that immigration also contributes to economic growth and helps address labor shortages in key industries.
As policymakers continue debating the nation’s immigration strategy, the Federal Reserve research is likely to remain part of the broader discussion over how illegal immigration affects housing, employment, and the financial well-being of American families.
With housing affordability still out of reach for many buyers and renters, the economic impact of border policy is expected to remain a major issue in the months ahead.