Part 5/9:
The sharp decline in immigration since Trump took office is expected to have dire consequences for the economy. Data from U.S. Customs and Border Protection indicates that border encounters have dropped by 94% year-over-year. This reduction translates to less demand for jobs and a potential slowdown in non-farm payroll growth.
A study from John Burns Real Estate Consulting highlights that immigration accounted for virtually all net growth in renter households from 2022 to 2024. With diminishing immigration flows, rental demand is likely to diminish, leading to a potential drop in rents and home values. As housing supply increases amid declining demand, the potential for a further economic downturn looms large.