Home prices have taken a notable dip over the past year, closely linked to the removal of millions of illegal immigrants by the Trump administration. According to the White House, there’s a clear correlation: “In 14 of the top 20 metro areas with the largest illegal migrant populations, home list prices declined year-over-year in December.” This trend indicates that areas most affected by mass deportations, such as those in Texas, Arizona, and California, are experiencing significant drops in housing costs.
Austin, Texas, recorded the largest decline at 7.3 percent. San Diego followed with a decrease of 6.7 percent, while Phoenix saw a more modest drop of 3.5 percent. In contrast, sanctuary cities—those that protect illegal immigrants—such as Seattle, Chicago, and Philadelphia, posted slight increases in home prices. This disparity raises questions about the impact of immigration policies on local housing markets.
The data from Realtor.com highlights these trends, with steep declines noted in cities like Tampa and Miami, while markets in Minneapolis and Cleveland saw the greatest increases. The leadership in cities like New York and Chicago is often criticized for their stance against Immigration and Customs Enforcement, possibly shielding them from the declines seen elsewhere.
The Department of Homeland Security (DHS) revealed that more than 2.5 million illegal immigrants either left or were removed from the United States in 2025. Their enforcement operations resulted in over 605,000 deportations, targeting the most severe criminal offenders as part of the effort to restore law and order. Additionally, around 1.9 million individuals self-deported, encouraged by initiatives such as the CBP Home app, which offers free flights back to their home countries.
At a rally in October 2024, Trump highlighted his administration’s intention to “close the border” to stop the influx. His claims stand in stark contrast to the Biden administration, which saw over 2 million illegal crossings during its last fiscal year in office. Under Trump’s recent administration, the pace of illegal crossings has plummeted from former monthly rates of up to 300,000 to around 10,000 to 11,000.
Vice President J.D. Vance pointed to rising housing costs as a significant concern for young Americans, attributing it to the influx of “30 million illegal immigrants who are taking houses that ought, by right, go to American citizens.” He emphasized the administration’s dual approach to mitigate housing affordability: making it easier to build homes while ensuring that illegal immigrants are removed from the country.
The correlation between housing costs and immigration policy is becoming increasingly prominent. As enforcement continues and illegal immigrant populations decline, the potential for lower housing costs may provide relief for many Americans struggling with affordability. The recent statistics paint a clearer picture of how significant a role these policies play in the broader housing market and the everyday lives of citizens.
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