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Thursday, March 7, 2013

Immigrants to help shape future housing demand
WASHINGTON – March 7, 2013 – Homeownership and rental demand may both get an uptick. A large number of immigrants are expected to enter the United States and call it home by 2020, according to a new study sponsored by the Mortgage Bankers Association’s Research Institute for Housing America.

The study, conducted by the University of Southern California, makes projections to the year 2020 on the growth of U.S. homeowner households headed by immigrants.

The number of foreign-born homeowners continues grew bigger each decade, according to the report. For example, the number of foreign-born homeowners rose 800,000 from 1980 to 1990; by 2.1 million from 1990 to 2000; and then by 2.4 million from 2000 to 2010.

For the 2010 to 2020 period, researchers project that number to rise 2.8 million.

The Hispanic immigrant population has shown a strong growth pattern. In 1990, Hispanic immigrants had a 15 percent homeownership rate that grew to nearly 53 percent in 2010. By 2020, Hispanics’ homeownership rate is expected to rise above 61 percent, according to researchers.

The states with the greatest demand from the foreign-born on homeownership are California and New York.

“As the housing market continues its recovery, it is important to understand the demographic trends which are likely to impact housing demand in the years ahead,” says Michael Fratantoni, RIHA’s executive director. “This study provides information for lenders, builders and policymakers regarding the future shape of housing demand, which the authors clearly show will be substantially impacted by the housing choices of foreign-born households, whether they are renters or homeowners.”

Source: “Housing demand to grow as new immigrants arrive,” HousingWire (March 5, 2013)

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