U.S. Department of Commerce

Economics and Statistics Administration

BUREAU OF THE CENSUS

Immigration Bolsters U.S. Housing Market

CENBR/97-4 | Issued December 1997

F LENGTH OF STAY A SIGNIFICANT INDICATOR

The longer an immigrant remains in this country, the more

likely he or she will be to purchase a home, up to a point.

Last year, the homeownership rate was highest – 80 percent – for foreign-born citizens who entered the United States

between 1950 and 1959 compared to only 36.1 percent for

those who entered the country in 1990 or later. (See figure

next page.)

However, for foreign-born citizens who have been in the

country the longest — those entering prior to 1950 — the

homeownership rate decreased to 76.6 percent. This could

be because of age-related frailties, retirement and alternative

housing arrangements. Homeownership for all householders tends to drop at about age 70.

OR GENERATIONS HOMEOWNERSHIP has played a

crucial role in achieving the American Dream. This

Census Brief analyzes homeownership among the

U.S. foreign-born population to determine if immigrants, whose numbers have increased steadily over the

last 26 years, have been as successful as the native-born in

achieving homeownership.

Based on data collected in the monthly Current Population Survey, this first-ever Census Bureau report on

homeownership by the U.S. foreign-born population may hold

important implications for many segments of the American

economy that are driven by home sales.

In fact, given the relatively small size of today’s nativeborn young adult population compared to the preceding Baby

Boom generation, immigrants may constitute an increasingly

larger part of the future demand for housing.

NATIVE AND FOREIGN-BORN CITIZENS

EQUALLY LIKELY TO OWN HOMES

To date, immigrants who have achieved U.S.

citizenship have been as successful in becoming homeowners as the native-born who are

citizens by birth.

In 1996, the overall homeowenership rate

for both native-born and foreign-born citizens

was about 67 percent (67.4 percent versus 66.9

percent), according to the U.S. Census Bureau

report, Moving to America — Moving to

Homeownership, H121/97-2.

The homeownership rate for non-citizens

was only 33.1 percent that year, possibly because some of them are here only temporarily

and are not interested in purchasing a home

or have not had enough time to fully establish

themselves. (See figure on right.) U.S. Department of Commerce; BUREAU OF THE CENSUS

HOMEOWNERSHIP RATES FOR THE UNITED STATES BY CITIZENSHIP

STATUS OF HOUSEHOLDER: 1996

65.4%

67.4%

66.9%

33.1%

All householders

Native-born citizen1

Foreign-born citizen

Non-citizen

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1 Includes those born in Puerto Rico or outlying areas and

those born abroad to American parents.
CENSUS BRIEF | December 1997

HOMEOWNERSHIP RATES FOR THE FOREIGN-BORN BY CITIZENSHIP STATUS OF

HOUSEHOLDER AND YEAR OF ENTRY INTO THE UNITED STATES: 1996

Note: Data reflect latest year of entry in the United States.

U.S. Department of Commerce; BUREAU OF THE CENSUS

C O N T A C T S:

Analyst:

Robert Callis

301-763-8165

bcallis@census.gov

Statistical Briefs:

Public Information

Office

301-457-3030

pio@census.gov

This Brief is one of a series that

presents information of current

policy interest. All statistics are

subject to sampling variability,

as well as survey design flaws,

respondent classification and

reporting errors, and data

processing mistakes. The

Census Bureau has taken steps

to minimize errors, and

analytical statements have been

tested and meet statistical

standards. However, because of

methodological differences, use

caution when comparing these

data with data from other

sources.

If homeownership improves over time for the

most recent immigrants, as it did for those who

came before them, foreign-born buyers may have

a significant impact on the future of the U.S. housing market. More than one-quarter (26.8 percent)

of the foreign-born population has come to this

country since 1990, according to another Census

Bureau report The Foreign-Born Population:

1996, P20-494. Another 34.3 percent entered during the 1980s.

MARRIAGE AFFECTS HOMEOWNERSHIP

For both native- and foreign-born populations,

marriage was a major predictor of homeownership. For all households, the homeownership rate

for married-couple families was 80.2 percent versus 48.3 percent for other types of families. Among

the native-born, the homeownership rate for married-couple families was 83.0 percent last year;

among foreign-born citizens, the rate was 78.3

percent; and for non-citizens, it was 41.9 percent.

HOMEOWNERSHIP BY REGION

In the Midwest and West, homeownership rates

for foreign-born citizens — at 76.8 percent and

66.6 percent, respectively — were higher than

for the native-born at 71.1 percent and 62.4 percent.

The reverse was true in the Northeast. For the

native-born, homeownership was 65.2 percent

compared with 60.4 percent for foreign-born citizens. In the South, there was no significant difference between the two groups.

RACE AND ETHNICITY

Foreign-born Hispanic citizens were more likely

to own a home in 1996 than native-born Hispanics.1

 Homeownership rates for foreign-born Whites

lagged behind native-born Whites 68.8 percent to

70.9 percent.

For Blacks, there was no significant difference

between foreign-born and native-born citizens.

1

Hispanics may be of any race.

0

20

40

60

80

100

1949 or

earlier

1950-59 1960-69 1970-79 1980-84 1985-89 1990 or

later

Percent

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Foreign-born citizen

Non-citizen