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Homeownership and Housing Equity: An Examination of Native- Immigrant Differences in Housing Wealth

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  • Swarnankur Chatterjee
  • Velma Zahirovic-Herbert

Abstract

This paper examines the differences in homeownership between immigrants and native-born residents using the National Longitudinal Survey of Youth 1979 (NLSY79) data. We estimate the preference for homeownership and the amount of home equity held by households using a two-stage procedure. The results indicate that, although immigrants are less likely to be homeowners, immigrants who make the decision to own homes are more likely to have greater housing equity than native-born residents. About 66 to 70% of the disparity in homeownership can be explained by the difference in characteristics. The remaining disparity results from different homeownership functions estimated for the two groups. We discuss the implications of these findings for policy makers, real estate market researchers, and scholars of consumer behavior. Copyright International Atlantic Economic Society 2011

Suggested Citation

  • Swarnankur Chatterjee & Velma Zahirovic-Herbert, 2011. "Homeownership and Housing Equity: An Examination of Native- Immigrant Differences in Housing Wealth," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 17(2), pages 211-223, May.
    • Handle: RePEc:kap:iaecre:v:17:y:2011:i:2:p:211-223:10.1007/s11294-011-9294-3
    DOI: 10.1007/s11294-011-9294-3
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    Cited by:

    1. Jinhee Kim & Swarn Chatterjee & Soo Cho, 2012. "Asset Ownership of New Asian Immigrants in the United States," Journal of Family and Economic Issues, Springer, vol. 33(2), pages 215-226, June.
    2. Dongshin Kim & Youngme Seo & Julia Freybote, 2021. "Urbanity, Financial Crisis and the Timing of Homebuying Decisions by Young Households," The Journal of Real Estate Finance and Economics, Springer, vol. 62(4), pages 481-507, May.
    3. David Love & Lucie Schmidt, 2015. "Comprehensive Wealth of Immigrants and Natives," Working Papers wp328, University of Michigan, Michigan Retirement Research Center.
    4. Nandita Das & Bernadette Ruf & Swarn Chatterjee & Aman Sunder, 2018. "Fund Characteristics and Performances of Socially Responsible Mutual Funds: Do ESG Ratings Play a Role?," Papers 1806.09906, arXiv.org, revised Feb 2023.
    5. Rebbeca Tesfai, 2016. "The Interaction between Race and Nativity on the Housing Market: Homeownership and House Value of Black Immigrants in the United States," International Migration Review, Wiley Blackwell, vol. 50(4), pages 1005-1045, December.

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    More about this item

    Keywords

    Investment decision; Housing equity; Immigration; Homeownership; E20; J10;
    All these keywords.

    JEL classification:

    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • J10 - Labor and Demographic Economics - - Demographic Economics - - - General

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