Report: Foreign-born homeowners coped better in the housing crisis
Source: Fannie Mae Housing Insights, Volume 4, Issue 5]
Earlier this week, Fannie Mae released a report which highlighted the shrinking gap between immigrant and native-born homeowners. The report demonstrates the expectation that immigrants are poised to be a huge force in housing recovery and homeownership demands.
Homeownership rates were flat between 1990 and 2000 for immigrant populations, but increased by 2.6-percent between 2000 and 2010. On the other hand, the homeownership rate for native-born Americans increased by 2.8-percent from 1990 to 2000 but declined 1.2% percent from 2000 to 2010. The major factor that determines homeownership rates, which the report confirms, is the longer immigrants are in the U.S. and the stronger their financial standing becomes, the more they buy homes.
The shrinking gap between the immigrant and native-born population through the housing crisis along with the 18.8 million immigrant renters represents a formidable population of potential homeowners. As NAHREP previously calculated, an addition of just 3-million immigrants to the homeownership pool could generate $500 billion in real estate transactions, bolstering the economy and housing recovery. "Homeownership trends of immigrants are promising, indicating the resilience of this segment of the population," stated Marisa Calderon, NAHREP Chief of Staff. "Fannie Mae's report points to a fact which NAHREP has been reporting for over a year now, that the immigrant population has the potential to be a huge force in the recovery of the housing industry."