The sharp rise in US immigration explains why the labor market is so loose and the housing market is so tight, JPMorgan says

• Immigration has added 3.3 million people to the US population in 2023 and 2024.
• This surge explains why the labor market has been so hot, and could keep US output up, according to JPMorgan.
• However, the firm notes that the immigration wave is also straining housing supply.

Soaring immigration has become a major driving force behind the country's economic performance, helping explain trends in labor, productivity, and the housing market, JPMorgan wrote in a new research note.

For 2023 and 2024, immigrants are estimated to add 3.3 million people to the US population per year, a cited Congressional Budget Office report shows. That's over three times the average seen in the last decade.