WASHINGTON, D.C. — A new federal housing report released Thursday delivered a sharp assessment of the nation’s affordability crisis, concluding that a surge of foreign-born individuals who entered the United States illegally during the Biden administration played a central role in driving up housing costs nationwide.
The Department of Housing and Urban Development’s report, Worst Case Housing Needs 2025, found that rapid population growth between 2021 and 2024 significantly increased rental demand and tightened housing supply, particularly in high-cost states such as California and New York. According to the analysis, the border crisis during that period accounted for all rental price growth in those states and more than half of the growth in owner-occupied housing. Nationwide, the foreign-born population was responsible for roughly two-thirds of total rental demand growth.
HUD Secretary Scott Turner discussed the findings Thursday during an interview on Fox Business’ Mornings with Maria, pointing to the scale and speed of population growth as a key pressure point on the housing market. Turner said the report showed that between 2021 and 2024, the foreign-born population increased by six million people, calling it the largest influx over such a short period in American history. He said the increase coincided with rising prices and a squeeze on available housing supply, adding that the Trump administration is working to expand housing availability and reduce costs.
The report cited data suggesting there are more than 15 million people living in the United States illegally, representing nearly 30 percent of the total foreign-born population. HUD officials said the findings highlight how population pressures can outpace construction and infrastructure, particularly in already strained urban markets.
On the same day the report was released, HUD announced a separate action targeting housing policy in Boston, notifying the city that the department’s Office for Fair Housing and Equal Opportunity has opened an investigation into what it described as discriminatory Diversity, Equity, and Inclusion housing practices.
In a statement, Turner said HUD believes Boston has pursued a housing strategy that advances race-based preferences rather than focusing on merit or need, potentially violating the Fair Housing Act and Title VI of the Civil Rights Act. He said the department will conduct a thorough investigation into the city’s stated goal of integrating racial equity into all layers of city government and ensure full compliance with federal anti-discrimination law.
The investigation follows a letter sent by HUD to Boston’s Mayor’s Office of Housing, stating the department had reason to believe the city was using HUD grant funds in ways that violate legal prohibitions against race-based preferences.
HUD cited several examples from city planning documents, including outreach efforts explicitly aimed at Black and Latinx families and policies within the Boston Housing Strategy 2025 that set targets for at least 65 percent of city-assisted homeownership opportunities to go to households identified as BIPOC. According to HUD, the documents describe financial housing assistance as being directed not simply toward low-income residents, but particularly toward specific racial groups.
HUD officials said the investigation will examine whether such policies unlawfully exclude or disadvantage other applicants and whether federal funds were used to support programs that conflict with civil rights protections.
Taken together, the report and the investigation mark an assertive shift by HUD, pairing a blunt diagnosis of the housing affordability crisis with heightened scrutiny of local housing policies. Department officials said both actions reflect a broader effort by the administration to address rising housing costs while enforcing federal civil rights law across state and local governments.
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