Homeownership Rate Gap Between Immigrants and the Native-Born Population Narrowed
Business Analyst, Economic & Strategic Research
Housing analysts have extensively studied homeownership attainment of immigrants and the native-born population. One major factor determining the homeownership rate gap between the two groups is immigrants’ length of residency in the United States. Immigrants who have arrived recently in the U.S. typically have low homeownership rates. That rate advances to higher levels as immigrants become more economically established and gain experience in U.S. housing markets, thereby narrowing the homeownership rate gap. However, one issue that has not been explored fully is how the homeownership rate gap has changed during the recent housing crisis, compared to previous years.
This new edition of Housing Insights from Fannie Mae's Economic & Strategic Research Group shows that, in line with existing research, as immigrants stayed longer in the U.S., they narrowed the homeownership rate gap with the native-born population.
According to the American Community Survey, the U.S. was home to 18.8 million immigrant renters in 2012, representing a large reservoir of potential future homeownership demand. Continued study of how these and future immigrants advance into homeownership as they reside longer in the U.S. may provide valuable insights into future prospects for the country’s housing market.
To learn more about these findings, read our latest edition of Housing Insights.
Economic & Strategic Research Group
August 25, 2014
The author thanks Patrick Simmons, Orawin Velz, Yang Hu, and Mark Palim for valuable comments in the creation of this commentary. Of course, all errors and omissions remain the responsibility of the author.
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