Immigration Slowdown To Sharply Reduce Renter Household Growth, Study Says

The clampdown on immigration has slowed the nation's population growth. Now, Harvard estimates it is also slowing the formation of new households in the United States.Harvard's Joint Center for Housing Studies estimates that immigration policy means 500,000 fewer households formed in the country each year from 2024 to 2027. Those 2 million households are mainly renters, but over time become homebuyers, Harvard said.President Donald Trump's immigration crackdown has broad implications for the national housing market. People coming into the country on work and student visas are a major contributor to rental demand. Homebuilders rely on a significant immigrant workforce, and crackdowns have contributed to worsening builder sentiment.Harvard researcher Daniel McCue said this marks a sharp turn from the 571,000 net new-renter households formed by immigrants who entered the country from 2022 to 2024 under President Joe Biden. At least one Fed study indicated illegal immigration may have driven up housing costs during the Biden administration.Instead, McCue projected immigrants would account for just 132,000 new household formations by 2027. This is based on the U.S. Census Bureau's most ...